Ghidotti v. Waldron
Ghidotti v. Waldron
Opinion
¶1 Darnell and Greg Ghidotti appeal the district court's grant of summary judgment in favor of Melodie Waldron and Re/Max Metro (collectively, Re/Max). The court ruled that the Ghidottis were unable to prove their damages with the requisite degree of certainty and had not properly disclosed Darnell 1 as an expert witness prior to trial. We affirm.
BACKGROUND
¶2 The Ghidottis were looking to purchase a house where they could live and operate a dog training and boarding business. They specifically wanted to find one in a community that was not controlled by a homeowners' association (HOA) because they anticipated an HOA would not allow them to operate this type of business from their home. One of the listings the Ghidottis reviewed with their real estate agent was for a property (Property) that apparently was not subject to an HOA: the listing left "blank[s]" after "HOA contact," "HOA phone," and "HOA remarks,"
and the section identifying "Restrictions on the property" was marked "No."
¶3 The Ghidottis signed a real estate purchase contract for the Property in May 2014. The contract required the sellers (Sellers) to make various disclosures including providing "a copy of any restrictive covenants (CC&Rs) [and] rules and regulations affecting the property." In their disclosures, the Sellers represented the Property was not "part of a condominium or other [HOA]." The Ghidottis allege they were never provided copies of any CC&Rs or rules and regulations affecting the Property. Based on the representations in the real estate purchase contract and the Sellers' disclosures that the Property was not subject to an HOA, the Ghidottis closed the deal on the Property.
¶4 After purchasing the Property, the Ghidottis applied for a conditional use permit, which they needed for keeping dogs on the Property. After becoming aware of the permit application, members of the Country Lane Ranchette's Homeowners' Association objected to its issuance, asserting that the Property was subject to CC&Rs. Further research revealed the Property was in fact subject to CC&Rs, which prohibited the Ghidottis from keeping their own dogs on the Property and precluded them from operating a training and kennel business there.
¶5 The Ghidottis filed a lawsuit in 2015 against the Sellers, Re/Max, and their real estate agent and broker. 2 In March 2015, the Ghidottis served their initial disclosures. The disclosures designated Darnell as a fact witness who potentially would testify about the Ghidottis' desire to purchase property not subject to an HOA, their efforts to ensure the Property was not subject to an HOA, the information provided to them about the Property, and how they discovered it was subject to an HOA. Neither Ghidotti was identified as an individual who would testify about damages. Darnell was mentioned among the "individuals who the plaintiffs may call in their case in chief" along with the phrase, "See summary of expected testimony above." The "computation of damages" section stated that the Ghidottis had "not yet had an opportunity to ascertain their damages." Further, it stated that the damages calculation would "depend upon if and when the [Ghidottis were] able to sell their Property" and "upon the expenses [the Ghidottis were] forced to incur in defending the action brought against them by their neighbors who [were] seeking to enforce the [CC&Rs]."
¶6 As fact discovery progressed, Darnell testified in her deposition about her calculation of damages resulting from their inability to run the business out of their home. Darnell acknowledged this was a new business operation. She also testified there were no other businesses in the area that offered similar services. After Darnell's deposition the Ghidottis filed their first supplemental disclosures, which included financial documents "the [Ghidottis] may offer in their case-in-chief." The documents were labeled but no explanation was provided along with them. The Ghidottis filed their second supplemental disclosures, which provided the following damages calculation:
The [Ghidottis] have computed their damages based on the difference in revenue their business ... would have earned, had they been able to operate the business as originally planned, and what it will earn in light of the required changes to its business plan. Because the [Property] ... is in the Country Lane Ranchette's Homeowners' Association and is subject to restrictive covenants-a fact that was concealed from and thus unbeknownst to [the Ghidottis] at the time of their purchase, despite their efforts to avoid purchasing a property in a homeowners association-[the Ghidottis] cannot operate the business on their property, as originally intended, but will have to operate the business at an off-site location. Operating at an off-site facility changes the services [the Ghidottis] can offer and increases operation costs. The [Ghidottis] calculate that the total damages, over the 20 years that [they]
intend to run their business, will be $2,784,159. [ 3 ]
The Ghidottis did not disclose any expert witnesses and acknowledge they never intended to do so.
¶7 In late 2015, the Ghidottis' real estate agent and broker filed a motion for summary judgment arguing the Ghidottis were unable to prove their damages with reasonable certainty. 4 The district court granted the motion and dismissed the Ghidottis' claims against their real estate agent and broker as well as Re/Max. The court ruled that the Ghidottis could not prove their damages with the requisite degree of certainty because they did "not have an expert to testify on profit potential." And although the Ghidottis suggested that "Darnell planned to offer expert testimony at trial," they did not properly disclose her as an expert witness under the Utah Rules of Civil Procedure. The Ghidottis appeal.
ISSUE AND STANDARD OF REVIEW
¶8 The Ghidottis argue the district court erred in granting summary judgment on the grounds that Darnell was not properly disclosed as an expert witness under the Utah Rules of Civil Procedure and therefore they failed to prove their damages with the requisite degree of certainty. "Interpretation of the Utah Rules of Civil Procedure is a question of law that we review for correctness."
Pete v. Youngblood
,
ANALYSIS
¶9 The Ghidottis challenge the district court's finding that they failed to timely disclose their intent to rely on Darnell as a non-retained expert witness. They acknowledge they did not properly disclose her as a retained expert but argue they "implicitly and sufficiently identified [Darnell] as an unretained expert witness to testify regarding the Ghidottis' damages." The Ghidottis argue that Darnell was properly disclosed as a non-retained expert when they listed her as a potential fact witness in their initial disclosures, when she testified about their damages during her deposition, and when they disclosed their financial documents in their first supplemental disclosures. The Ghidottis argue summary judgment was improper because these disclosures gave Re/Max "ample notice" that they intended to have Darnell testify about their damages as an expert at trial. We disagree.
¶10 Summary judgment is appropriate when "the moving party shows that there is no genuine dispute as to any material fact and the moving party is entitled to judgment as a matter of law." Utah R. Civ. P. 56(a). The district court "should not weigh disputed evidence" and must view "the facts and all reasonable inferences to be drawn therefrom in a light most favorable to the nonmoving party."
Pigs Gun Club, Inc. v. Sanpete County
,
¶11 In this case, Re/Max argued the Ghidottis were unable to prove damages with the requisite degree of certainty and therefore their claims should be dismissed on summary judgment. To recover damages, a plaintiff must prove both the fact of damages and the amount of damages.
Atkin, Wright & Miles v. Mountain States Tel. & Tel. Co.
,
¶12 The Ghidottis sought damages in the form of lost profits, which "must be established with ... sufficient certainty that reasonable minds might believe from a preponderance of the evidence that the damages were actually suffered."
Kilpatrick v. Wiley, Rein & Fielding
,
¶13 In this case, the Ghidottis desired to start a new business. Because they did not have any record of past earnings they needed to prove their damages through other means.
5
See
If a party intends to present evidence at trial under Rule 702 of the Utah Rules of Evidence from any person other than an expert witness who is retained or specially employed to provide testimony ... that party must serve on the other parties a written summary of the facts and opinions to which the witness is expected to testify.
¶14 The Ghidottis argue they adequately disclosed "a written summary of the facts and opinions to which [Darnell was] expected to testify." Utah R. Civ. P. 26(a)(4)(E). But contrary to this argument, such a disclosure is not enough. This court has consistently held that disclosing a witness as a fact witness, by itself, is insufficient to allow that witness to also present expert testimony.
See
Solis v. Burningham Enters. Inc.
,
¶15 The Ghidottis also argue that they implicitly disclosed Darnell as an expert witness and the substance of her potential testimony was properly disclosed through her deposition and financial documents. This argument is contrary to our precedent. In
Solis
, this court held that implicit disclosures
are insufficient to qualify a fact witness as an expert witness.
¶16 The Ghidottis argue that such a narrow interpretation of expert disclosure requirements is inconsistent with rule 1, which states that the rules of civil procedure "shall be liberally construed and applied to achieve the just, speedy, and inexpensive determination of every action." Utah R. Civ. P. 1. We recognize that " 'all [the disclosure rules] require is that a party fairly inform its opponent that opinion testimony may be offered from a particular witness.' "
RJW Media Inc. v. Heath
,
¶17 As this court noted in RJW , disclosure requirements are "not merely a matter of form." Id. ¶ 25. The disclosure requirements "serve the beneficial purpose of ... giving the opposing party the confidence to not engage in further discovery. But this is only true if the potential for surprise is reduced by at least minimum compliance with the rule 26 disclosure requirements." Id. These minimal disclosure requirements are necessary so "parties can make better informed choices about the discovery they want to undertake or, just as important, what discovery they want to forgo." Id. Here, Re/Max relied on the Ghidottis' representation that they had no intention of using experts in not hiring any experts of their own. Such strategic decisions are a key aspect of discovery and must be carefully safeguarded by strictly following the disclosure requirements.
¶18 Finally, the district court ruled that the Ghidottis did not demonstrate that their failure to disclose Darnell as an expert was harmless or that there was good cause for the omission.
See
Utah R. Civ. P. 26(d)(4) ("If a party fails to disclose or to supplement timely a disclosure or response to discovery, that party may not use the undisclosed witness, document or material at any hearing or trial unless the failure is harmless or the party shows good cause for the failure."). The court ruled that late disclosure of Darnell as an expert would be harmful because the time set for trial was approaching and none of the defendants had retained experts in reliance on the Ghidottis not disclosing any expert witnesses. We conclude the court did not abuse its discretion in making this determination.
See
Townhomes at Pointe Meadows Owners Ass'n v. Pointe Meadows Townhomes, LLC
,
¶19 We conclude that Darnell's testimony about damages in her deposition, the financial exhibits, and the statement of damages in the supplemental disclosures are insufficient to support a conclusion that Darnell was properly disclosed as a non-retained expert witness under the Utah Rules of Civil Procedure.
CONCLUSION
¶20 The district court properly granted summary judgment in favor of Re/Max when the Ghidottis failed to prove their damages with the requisite degree of certainty by failing to properly disclose Darnell as an expert witness. Affirmed.
As is our practice when parties share a last name, we sometimes refer to them by their first names with no disrespect intended by the apparent informality.
The claims against the Sellers and the Ghidottis' agent and broker were resolved prior to this appeal.
This is the entire damages calculation.
Re/Max joined the motion.
The Ghidottis challenge only the court's finding that they did not properly disclose Darnell as an expert witness. They do not argue that they should have been able to prove their damages through the other two means mentioned in
Cook Assocs., Inc. v. Warnick
,
Reference
- Full Case Name
- Darnell GHIDOTTI and Greg Ghidotti, Appellants, v. Melodie WALDRON and Re/Max Metro, Appellees.
- Cited By
- 8 cases
- Status
- Published