Utah Supreme Court

America West Bank Members, L.c., Appellant v. State of Utah and Its Agents; Utah Department of Financial…

October 24, 2014772 Utah Adv. Rep. 9

Summary

The court affirmed dismissal of all of America West Bank Members’ claims, holding that the complaint failed to plead the essential facts supporting its contract, good-faith, and takings theories. The court also affirmed dismissal of the due-process claims but held that dismissal should have been without prejudice because the pleading defects did not establish that amendment would necessarily be futile. The court rejected the argument that the district court applied a heightened pleading standard.

Holding

  • Finality and appellate jurisdiction. An order dismissing the complaint is final and appealable even when dismissal is without prejudice, because the pragmatic effect of the order fully terminates the case in the district court.
  • Breach of contract and breach of the covenant of good faith and fair dealing. The complaint failed to state a breach-of-contract claim because it did not allege when the contract was made, its essential terms, or the nature of the alleged breach. Because the good-faith claim was derivative of the contract claim, it also failed.
  • Procedural and substantive due process. The due-process claims were properly dismissed for failure to plead the elements required for constitutional damages, but the dismissal should have been without prejudice because the complaint’s lack of factual detail did not establish with certainty that America West Bank Members could never state a claim.
  • Takings claim. The complaint did not adequately plead a compensable taking because it did not identify whether the alleged taking was physical or regulatory and did not provide facts sufficient to evaluate the claim.
  • Alleged heightened pleading standard. The district court did not apply a heightened pleading standard.

Docket No 20120456

Cited authorities

  • rule 12(b)(6) of the Utah Rules of Civil Procedure
  • rule 12(b)(6) of the Utah Rules of Civil Procedure
  • Rule 12(b)(6) of the Utah Rules of Civil Procedure
  • rule 12(b)(6) of the Utah Rules of Civil Procedure
  • rule 8(a) of the Utah Rules of Civil Procedure
  • Utah Rule of Civil Procedure 12(b)(6)
  • rule 8 of the Utah Rules of Civil Procedure
  • rule 9 of the Utah Rules of Civil Procedure

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