Bakowski v. Mountain States Steel, Inc., 2002 UT 62

Summary

The Utah Supreme Court affirmed summary judgment for Voest-Alpine in a dispute arising from a commercial lease, holding that the lease commenced on March 1, 1994, and required Voest-Alpine to procure liability insurance. The court further held that the lease’s waiver-of-subrogation provision barred Mountain States and its insurers from recovering settlement amounts, and upheld the attorney-fee award.

Holdings

1. The lease commenced on March 1, 1994, as expressly provided by the lease, and Voest-Alpine's contractual duty to procure liability insurance was effective on that date.
2. The first sentence of the lease's waiver-of-subrogation provision independently waived Mountain States' claims and its insurers' subrogation rights for losses covered by any insurance policy in force at the time of loss.
3. The trial court did not abuse its discretion by limiting Voest-Alpine's attorney-fee award to $30,206.45 rather than awarding the additional $8,173.55 later asserted.

Questions Presented

1. Whether the lease term and Voest-Alpine's duty to procure insurance commenced on March 1, 1994, or when Voest-Alpine took possession on April 6, 1994.
2. Whether the lease's waiver-of-subrogation provision barred Mountain States and its insurers from recovering amounts paid to settle the injury claims.
3. Whether the trial court abused its discretion by awarding Voest-Alpine $30,206.45 rather than the additional attorney fees later sought.

Disposition

affirmed