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Panel presses parties on inconsistent verdicts, "alter ego" link and punitive-damage allocation
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Summary
At oral argument, counsel sparred over whether an "alter ego" finding reconciles a verdict that (a) found both NWR and Natural Choice negligent but (b) allocated 100% compensatory fault to NWR while assigning punitive awards to both; NWR argued alter-ego predominated at trial and that cell-phone evidence undermines a key finding about Luke Nelson's presence.
Taylor Webb, counsel for NWR, told the Utah Court of Appeals that the alter-ego theory was central at trial and that a reversal on alter ego would leave no coherent basis for the jury's mixed findings.
"If that goes away, there's no confidence that can remain in the verdict because that was the sole thing tying everything together," Webb argued, urging reversal or a new trial if the panel finds the alter-ego determination legally unsupportable.
Webb and opposing counsel spent substantial argument time on the special verdict form. The form asked identical causation questions about each defendant (whether each defendant's negligence was a substantial factor), later asked whether an alter-ego relationship existed, and then asked for allocation of fault. The panel focused on two perceived inconsistencies: first, the jury found both parties negligent yet allocated 0% of fault to Natural Choice and 100% to NWR; second, the jury returned separate punitive-damage amounts for each defendant even after answering the alter-ego question "yes."
Jonathan Grover, on behalf of the landowners, emphasized that the parties stipulated to jury instructions and the special verdict form and urged deference to the trial court and the jury's factfinding. He argued that earlier findings supporting liability and admissions in the record (including statements attributed at trial) justified the verdict. "We went through years of discovery in this case," Grover said, noting depositions and admissions the landowners say support liability findings independent of an alter-ego theory.
Webb pointed to what she described as "undisputed cell phone evidence" showing that Luke Nelson was not in the canyon when the fire started, arguing that absence undercuts the landowners' theory that Luke's conduct independently supports a negligence verdict as to NWR. Counsel disagreed over whether the jury could permissibly find altered relationships for some purposes (compensatory allocation) yet assign punitive awards on separate lines.
Panel questions repeatedly sought to reconcile how the jury could assign 0% compensatory fault to Natural Choice while later awarding Natural Choice punitive damages; counsel offered competing theories of how the jury used the verdict form and what legal consequences should follow.
The court thanked counsel and took both appeals under advisement; the panel said it will issue a written opinion when ready.
