MAA Prospector Motor Lodge, LLC v. Palmer

Here the Supreme Court reaffirmed its statement in 2DP Blanding, LLC v. Palmer, __ P.3d ___ (Utah 2017), that “an appellant who takes no action to preserve his interests in property at issue on appeal has no recourse against a lawful third-party purchaser.”This case involved the same unstayed court order at issue in 2DP Blanding that authorized a foreclosure sale of real property. Here, MAA Prospector purchased property at the foreclosure sale. MAA Prospector had actual notice of Ray Palmer’s appeal of the foreclosure order when it purchased the property. The court of appeals reversed the judgment under which the foreclosure sale was conducted. Palmer then recorded a notice of default and election to sell under his original trust deed. MAA Prospector brought this suit against Palmer seeking to enjoin Palmer from foreclosing on the property and quieting its title to the property. The district court ruled in favor of MAA Prospector. The Supreme Court affirmed, holding that MAA Prospector’s actual notice of Palmer’s appeal did not mean that MAA Prospector took the property subject to the outcome of the appeal. View "MAA Prospector Motor Lodge, LLC v. Palmer" on Justia Law