Cougar Canyon Loan, LLC v. Cypress Fund, LLCAnnotate this Case
The Supreme Court declined to accept Cypress Fund, LLC's request that the Court declare, as a matter of public policy, that Cougar Canyon Loan, LLC cannot foreclose on Cypress's cause of action for legal malpractice, holding that the policy concerns raised by Cypress were insufficient to override the plain language of Utah R. Civ. P. 64 and 64E, the rules governing the foreclosure of legal claims through a writ of execution.
In a separate case, Cougar Canyon obtained a $4 million judgment against Cypress. Cypress filed a malpractice suit against its former legal counsel, believing that the judgment resulted from that counsel's malpractice. In its effort to collect on its judgment against Cypress, Cougar Canyon foreclosed on Cypress's right to bring the malpractice claim. At issue on appeal was whether public policy requires that this foreclosure be undone. The Supreme Court affirmed the district court's denial of Cypress's motion to quash the writ of execution, holding that the plain language of the rules of civil procedure allowed Cougar Canyon to execute on Cypress's legal malpractice claim, and any change to those rules should be sought through the normal rule-making process.