Utah Supreme Court Hears Argument Over Whether Stay Pending Appeal Required Bond or Injunctive Standard

The Utah Supreme Court heard arguments Monday in Jenko v. Valdera Land Holdings over whether the district court erred in granting a stay pending appeal and what legal standard applies when the relief at issue requires or forbids transfer of a trust deed.

At issue is whether the trial court properly granted Jenko’s ex parte motion to stay enforcement of an order that — according to the underlying judgment — required reconveyance of a trustee interest once a monetary tender was made. Louis Rees, counsel for Valdera Land Holdings, told the justices that the order has both monetary and injunctive elements and that, once Valdera tendered funds, only the injunctive component (the obligation to release the trust deed) remained to be performed. Rees argued the trial court applied Rule 62(b)’s presumptive bond calculation when the court should instead have applied the discretionary injunctive standard under Rule 62(c) and held an evidentiary hearing to set any security required to protect Valdera’s rights.

The question matters, Rees told the court, because Valdera contends it has already tendered payment and will suffer substantial development losses while the trustee interest remains on title.…