ENERGY MANAGEMENT SERVICES LLC v. Shaw, Case No. 20021064-CA.

CourtUtah Court of Appeals
Writing for the CourtTHORNE.
Citation110 P.3d 158,2005 UT App 90
Docket NumberCase No. 20021064-CA.
Decision Date25 February 2005
PartiesEnergy Management Services, L.L.C., Plaintiff and Appellant, v. Dan K. Shaw, an individual; and Del-Rio Resources, Inc., a Utah corporation, Defendants and Appellees.

2005 UT App 90
110 P.3d 158

Energy Management Services, L.L.C., Plaintiff and Appellant,
v.
Dan K. Shaw, an individual; and Del-Rio Resources, Inc., a Utah corporation, Defendants and Appellees

Case No. 20021064-CA.

Utah Court of Appeals.

Filed February 25, 2005.


This opinion is subject to revision before publication in the Pacific Reporter

Max D. Wheeler, Rex E. Madsen, and Keith A. Call, Salt Lake City, for Appellant.

Thomas R. Karrenberg and Stephen P. Horvat, Salt Lake City, for Appellees.

Before Judges Billings, Orme, and Thorne.

OPINION

THORNE, Judge:

¶1 Energy Management Services, L.L.C. (EMS) appeals the trial court's grant of summary judgment to Dan K. Shaw and Del-Rio Resources, Inc. (Del-Rio). We reverse and remand for consideration of EMS's request for additional discovery.

BACKGROUND

¶2 EMS,1 along with several other entities and individuals including a subsidiary of Del-Rio (collectively, the federal plaintiffs), held interests in ten oil leases. Access to those leases was cut off in 1983, and in 1986 the federal plaintiffs sued the United States for damages resulting from the denial of the use of these leases (the federal litigation).

¶3 While the federal litigation was pending, Del-Rio borrowed nearly $800,000 from Shaw to finance a separate drilling project with the corporate EMS entities. The EMS entities were jointly and severally liable on the loan. In 1995, when Del-Rio was unable to repay the loan, Del-Rio and the EMS entities entered into an agreement (the 1995 agreement) with Shaw whereby Shaw forgave the debt in exchange for the conveyance of several oil leases (not involved in the federal litigation) that had been pledged as security for the loan.

¶4 As additional consideration for the 1995 agreement, Shaw agreed to use his best efforts to enter into a separate agreement with the federal plaintiffs to fund the federal litigation in an amount of up to $30,000. Per the 1995 agreement, any funding agreement between Shaw and the federal plaintiffs was to contain provisions granting Shaw an assignment of any additional leases resulting from the federal litigation, and reimbursing him out of any monetary award that might result. The federal plaintiffs were to retain a fifty percent beneficial interest in the assigned leases and were to retain any money damages that remained after Shaw's reimbursement.

¶5 Shaw ultimately funded the federal litigation with at least $20,000 of his own money, although the existence and terms of any funding agreement involving Shaw and any of the federal plaintiffs is disputed. In 2000, pursuant to a settlement of the federal litigation, the United States agreed to reinstate and extend the subject leases for three years and pay the federal plaintiffs $300,000. When EMS apparently did not receive its expected pro rata share of the fifty percent beneficial interest in the extended leases and the money damages remaining after Shaw's reimbursement, it brought this action for declaratory relief and money damages.

¶6 EMS's complaint asserted that Shaw funded the federal litigation, and that this funding evidenced a funding agreement between Shaw and one or more of the federal plaintiffs. Pursuant to the terms of the 1995 agreement, such a funding agreement should have contained terms granting EMS an interest in the federal litigation settlement. EMS sought relief consistent with the terms of the funding agreement as mandated by the 1995 agreement.

¶7 Shaw and Del-Rio moved for summary judgment, supported in part by Shaw's affidavit that his funding of the federal litigation did not occur pursuant to the terms of the 1995 agreement. EMS requested a continuance under Utah Rule of Civil Procedure 56(f) to allow further discovery, specifically the depositions of Shaw and Gerald Nielson, the attorney who represented the federal plaintiffs, negotiated the federal litigation settlement, and oversaw its disbursement. Without addressing EMS's rule 56(f) request, the trial court granted summary judgment to Shaw and Del-Rio after concluding that the 1995 agreement did not grant EMS any independent interest in the settlement proceeds. EMS brings this appeal challenging...

To continue reading

Request your trial
9 practice notes
  • Cea v. Hoffman, No. 20100728–CA.
    • United States
    • Utah Court of Appeals
    • April 5, 2012
    ...de novo review.’ ” Bluemel v. Freestone, 2009 UT App 16, ¶ 4, 202 P.3d 304 (quoting Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158). “Generally, summary judgment should not be granted if discovery is incomplete since information sought in discovery may create a genuine ......
  • Robinson v. Jones Waldo Holbrook & McDonough, PC, No. 20140213–CA.
    • United States
    • Court of Appeals of Utah
    • February 19, 2016
    ...motion. We review the denial of a rule 56(f) motion for an abuse of discretion. Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158. ¶ 11 Robinson also challenges the district court's grant of Defendants' motion for summary judgment. We review a district court's legal conclu......
  • Wright v. PK Transp., No. 20120239–CA.
    • United States
    • Court of Appeals of Utah
    • April 24, 2014
    ...56(f) motion as a denial and review that decision for an abuse of discretion. See Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158. ¶ 16 The district court observed that due to Appellees' “absence during the early stages of the proceeding,” Appellees “were not present to ......
  • Elec. Contractors, Inc. v. Westwater Farms, LLC, No. 20141166–CA.
    • United States
    • Court of Appeals of Utah
    • March 31, 2016
    ...should be granted liberally unless they are deemed dilatory or lacking in merit." Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 10, 110 P.3d 158 (citation and internal quotation marks omitted). Westwater asserts that the district court exceeded its discretion by denying Westwater's mo......
  • Request a trial to view additional results
9 cases
  • Cea v. Hoffman, No. 20100728–CA.
    • United States
    • Utah Court of Appeals
    • April 5, 2012
    ...de novo review.’ ” Bluemel v. Freestone, 2009 UT App 16, ¶ 4, 202 P.3d 304 (quoting Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158). “Generally, summary judgment should not be granted if discovery is incomplete since information sought in discovery may create a genuine ......
  • Robinson v. Jones Waldo Holbrook & McDonough, PC, No. 20140213–CA.
    • United States
    • Court of Appeals of Utah
    • February 19, 2016
    ...motion. We review the denial of a rule 56(f) motion for an abuse of discretion. Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158. ¶ 11 Robinson also challenges the district court's grant of Defendants' motion for summary judgment. We review a district court's legal conclu......
  • Wright v. PK Transp., No. 20120239–CA.
    • United States
    • Court of Appeals of Utah
    • April 24, 2014
    ...56(f) motion as a denial and review that decision for an abuse of discretion. See Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 8, 110 P.3d 158. ¶ 16 The district court observed that due to Appellees' “absence during the early stages of the proceeding,” Appellees “were not present to ......
  • Elec. Contractors, Inc. v. Westwater Farms, LLC, No. 20141166–CA.
    • United States
    • Court of Appeals of Utah
    • March 31, 2016
    ...should be granted liberally unless they are deemed dilatory or lacking in merit." Energy Mgmt. Servs., LLC v. Shaw, 2005 UT App 90, ¶ 10, 110 P.3d 158 (citation and internal quotation marks omitted). Westwater asserts that the district court exceeded its discretion by denying Westwater's mo......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT