Utah Court of Appeals

Does defamation per se guarantee substantial damages in Utah? Westmont Mirador v. Miller Explained

2014 UT App 209
No. 20130985-CA
September 5, 2014
Affirmed

Summary

Westmont sued Miller and Nelson for defamation per se after they called the company ‘crooks’ and ‘scam artists’ online. The district court entered default judgment and awarded only nominal damages of one dollar, despite finding the statements constituted defamation per se.

Analysis

In Westmont Mirador v. Miller, the Utah Court of Appeals clarified a crucial distinction in defamation per se law that practitioners must understand when advising clients about potential recoveries.

Background and Facts

Westmont Mirador, LLC and Terry Foote sued Joshua Miller and Brad Nelson after the defendants made online comments calling the company “crooks” and “scam artists.” When Miller and Nelson failed to answer the complaint, the district court entered a default judgment. The court determined that the defendants’ statements constituted defamation per se because they charged conduct incompatible with operating a lawful business. However, the court awarded only one dollar in nominal damages, declining to award compensatory or punitive damages.

Key Legal Issues

The central question was whether courts must award substantial damages in defamation per se cases where damages are legally presumed. Westmont argued that because damages are presumed, the court was required to award sufficient damages to discourage future defamation.

Court’s Analysis and Holding

The Court of Appeals affirmed the nominal damage award, holding that presumed damages in defamation per se cases serve as a procedural mechanism that relieves plaintiffs of proving damages as an element of their prima facie case. The court emphasized that presumed harm does not require courts to presume any particular amount of damages beyond nominal damages. The court also noted that Westmont failed to adequately brief its argument with proper legal analysis and authority.

Practice Implications

This decision has significant implications for defamation practitioners. Clients should understand that defamation per se designation does not guarantee substantial monetary recovery. The presumption of damages merely eliminates the burden of proving harm occurred, but actual damage awards may still be minimal. Additionally, the court’s emphasis on adequate briefing serves as a reminder that appellate arguments must include detailed legal analysis beyond mere citation to authority.

Original Opinion

Link to Original Case

Case Details

Case Name

Westmont Mirador v. Miller

Citation

2014 UT App 209

Court

Utah Court of Appeals

Case Number

No. 20130985-CA

Date Decided

September 5, 2014

Outcome

Affirmed

Holding

In defamation per se cases, presumed damages relieve the plaintiff of proving damages as an element but do not require courts to award substantial monetary damages beyond nominal damages.

Standard of Review

Correctness for questions of law regarding damage measurement rules

Practice Tip

When briefing damage issues on appeal, provide detailed legal analysis and authority beyond mere citation to cases, as inadequate briefing will result in waiver of the argument.

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