In Utah business lawsuits, winning does not automatically mean the other side pays your attorney fees. Before suing, defending, or settling a dispute, businesses should understand when attorney fees may be recoverable under a contract, statute, rule, or recognized exception.

Because fees can affect both risk and settlement value, they should be evaluated before major litigation decisions are made.

Can I Recover Attorney Fees If I Win a Lawsuit in Utah?

Sometimes, but not automatically.

Utah generally follows the American Rule, meaning each side pays its own attorney fees unless a contract, statute, rule, or recognized exception allows fee recovery.

Attorney Fee Clauses in Utah Business Contracts

In many business disputes, the contract is the first place to look.

Many commercial contracts include attorney fee provisions. These clauses often say that the “prevailing party” in a dispute may recover reasonable attorney fees.

Other clauses may limit the following:

  1. Fee recovery to collection actions.
  2. Enforcement actions.
  3. Default remedies.
  4. Indemnity claims.
  5. Specific types of proceedings.

For example, a contract may allow fees only if one party sues to collect amounts due. Another contract may allow fees for “any action arising out of or relating to” the agreement. Those clauses can produce very different results.

Utah also has a reciprocal attorney-fee statute. Under Utah Code § 78B-5-826, if a written contract, promissory note, or other writing allows at least one party to recover attorney fees, a court may award attorney fees to either party that prevails in a civil action based on that writing.¹

In general, a one-sided attorney-fee clause may not stay one-sided in Utah.

What Does “Prevailing Party” Mean in a Utah Attorney Fee Claim?

Many clients assume that if they win anything, they are the prevailing party. This is not always the case. Courts may look at the claims, the relief requested, the relief obtained, and the overall result to make decisions.

A party that wins one issue but loses the main dispute may not receive all the fees it wants. A party that wins on liability but recovers much less than demanded may face a fight over whether it prevailed and what amount of fees is reasonable.

That is why fee clauses and fee statutes should be reviewed early in the case.

Common Utah Laws That May Allow Attorney Fee Recovery

Some Utah statutes allow attorney fees in specific kinds of cases, but fees are not available in every statutory claim. A party still must identify the statute, meet its requirements, and show the requested amount is reasonable.

Utah’s Reciprocal Contract-Fee Statute

Utah Code § 78B-5-826 may apply when a civil action is based on a promissory note, written contract, or other writing that allows at least one party to recover attorney fees. The statute allows the court to award costs and attorney fees to either party that prevails.²

This statute often matters in:

  1. Business loan disputes.
  2. Commercial leases.
  3. Service agreements.
  4. Purchase agreements.
  5. Other written contracts.

Bad-Faith Claims or Defenses

Utah Code § 78B-5-825 allows a court to award reasonable attorney fees to a prevailing party in a civil action if the court determines that the action or defense was without merit and not brought or asserted in good faith.³

This is not the same as saying, “The other side lied,” or “The other side was difficult.” Courts usually require more than ordinary hard-fought litigation. But when a claim or defense truly lacks merit and was not asserted in good faith, this statute may matter.

Trade Secret Disputes

Utah’s Uniform Trade Secrets Act allows a court to award reasonable attorney fees to the prevailing party in certain situations. Under Utah Code § 13-24-5, those situations include:

  1. Bad-faith misappropriation claims.
  2. Bad-faith motions to terminate an injunction.
  3. Willful and malicious misappropriation.

This can matter in cases involving customer lists, confidential business information, pricing data, formulas, software, internal processes, or other sensitive business information.

Consumer Sales Practices Claims

The Utah Consumer Sales Practices Act includes a fee provision in actions by consumers. Utah Code § 13-11-19(5) allows a court to award a reasonable attorney fee to the prevailing party in certain circumstances.

This statute may matter when a business faces consumer claims or when the dispute involves allegedly deceptive or unconscionable practices in consumer transactions.

Deceptive Trade Practices Claims

The Utah Truth in Advertising Act provides remedies for certain deceptive trade practices. Utah Code § 13-11a-4(1)(c) states that the court shall award attorney fees to the prevailing party in certain actions under that chapter.

This can matter in disputes involving:

  1. Misleading advertising.
  2. Competitor comparisons.
  3. False statements about goods or services.
  4. Business-related conduct.

Business Opportunity Disputes

The Utah Business Opportunity Disclosure Act gives purchasers certain remedies when a seller violates the statute. Utah Code § 13-15-302(2)(b) provides that a purchaser may be entitled to rescission, reasonable attorney fees, costs of court, and damages or statutory minimum recovery in qualifying cases.

This statute can matter in disputes involving:

  1. Business-opportunity sales.
  2. Franchise-like arrangements.
  3. Promised business systems.

Wage Claims

Utah’s Payment of Wages Act can allow attorney fees in certain wage-related claims. Utah Code § 34-28-9.5 allows an employee to file a wage claim in court without exhausting administrative remedies, and the wage chapter includes civil remedies that may include attorney fees depending on the claim and posture.

For businesses, wage fee exposure matters because a relatively small unpaid-wage dispute can become more expensive if penalties and attorney fees are available.

Shareholder Inspection and Corporate Records Disputes

Utah corporate law gives shareholders and directors certain rights to inspect corporate records. If a court orders inspection or copying of demanded records, Utah Code § 16-10a-1604(3) generally requires the corporation to pay the shareholder’s or director’s costs incurred to obtain the order, including reasonable counsel fees, unless the corporation proves it refused inspection in good faith because it had a reasonable basis to doubt the right of inspection.

Utah Code § 16-10a-720(5)(a) also addresses shareholder lists for meetings and can require the corporation to pay costs, including reasonable counsel fees, if the court orders inspection or copying of the shareholder list before or at the meeting.¹⁰

These statutes matter in:

  1. Owner disputes.
  2. Freeze-outs.
  3. Shareholder-information disputes.
  4. Corporate-control fights.

Appraisal Proceedings

In certain corporate appraisal proceedings, Utah Code § 16-10a-1331 allows the court to determine costs and may assess fees and expenses of counsel and experts in amounts the court finds equitable under specified circumstances.¹¹

This can matter when shareholders dissent from certain corporate actions and seek judicial appraisal of shares.

LLC Derivative Actions

For Utah limited liability companies, Utah Code § 48-3a-806(2) allows the court to award reasonable expenses, including attorney fees, in derivative proceedings under certain circumstances.¹²

This statute can matter when a member brings a derivative claim to enforce rights belonging to the company rather than only personal rights belonging to the member.

Construction Lien Actions

Utah’s construction lien statute provides for attorney fees in certain lien-enforcement actions. Under Utah Code § 38-1a-707, in an action brought to enforce a lien under the chapter, the successful party may recover reasonable attorney fees, subject to statutory limits and exceptions.¹³

This can matter in:

  1. Construction disputes.
  2. Contractor disputes.
  3. Subcontractor disputes.
  4. Supplier disputes.
  5. Property-development disputes.

Wrongful Lien Disputes

Utah Code § 38-9-205(5) also addresses attorney fees in wrongful lien situations. A person who records a wrongful lien may face damages, attorney fees, and costs in certain circumstances.¹⁴

That can matter when a business or property owner faces an improper lien, false lien, or groundless recorded claim.

Lis Pendens / Notice of Pendency Disputes

A lis pendens, also called a notice of pendency, can cloud title to real property while litigation is pending. Utah Code § 78B-6-1304(8) includes fee-shifting language for certain motions involving notices of pendency.¹⁵

This can matter in:

  1. Real estate disputes.
  2. Development disputes.
  3. Ownership disputes.
  4. Title disputes.

Pattern Of Unlawful Activity Claims

Utah’s pattern-of-unlawful-activity statute allows fee recovery for a prevailing party on certain civil claims. Utah Code § 76-17-403(2) provides that a party who prevails on a cause of action brought under that section recovers the cost of suit, including reasonable attorney fees.¹⁶

These claims can have grave consequences and should not be made casually. But in the right case, the fee provision can become a significant part of the litigation analysis.

Antitrust Claims

Utah antitrust law also includes attorney-fee-related provisions. Utah Code § 76-16-511 permits private actions for certain antitrust injuries, and Utah’s antitrust provisions include attorney-fee oversight in actions brought under that part.¹⁷

Antitrust cases are specialized and fact-intensive, but businesses should know that fee exposure can become part of the risk analysis in those disputes.

How to Request Attorney Fees Under Utah Rule of Civil Procedure 73

Even when a party has a legal basis to recover attorney fees, the party still must request them correctly.

Utah Rule of Civil Procedure 73 requires a motion for attorney fees no later than 14 days after judgment, subject to exceptions. It also requires the motion to identify the basis for fees and support the amount claimed with an affidavit or declaration describing the work performed and establishing reasonableness. ¹⁸

Having a right to fees is not enough. You must preserve the request and prove the amount.

How Attorney Fee Exposure Affects Utah Business Lawsuit Settlements

Attorney-fee exposure can influence settlement strategies.

If one side has a strong fee claim, that may increase leverage. A defendant may settle earlier to avoid paying not only damages but also the plaintiff’s attorney fees. A plaintiff may push forward if the fee statute makes the case economically viable.

But fee exposure can also make a case harder to settle. If both sides believe they can recover fees, each side may dig in. A $50,000 dispute can turn into a much larger fight if attorney fees become the main issue.

What Utah Businesses Should Review Before Suing or Defending a Claim

Before making a major litigation decision, businesses should ask:

  • Does the contract include an attorney-fee clause?
  • Does Utah’s reciprocal fee statute apply?
  • Does a specific Utah statute allow fees for this claim?
  • Does the fee statute help only one side, or both sides?
  • What does “prevailing party” mean under the contract or statute?
  • How much will the fee claim realistically add?
  • Does fee exposure change settlement strategy?
  • What deadline applies to claim fees after judgment?

These questions help businesses evaluate litigation cost, risk, and settlement strategy.

Talk to a Utah Business Litigation Attorney About Attorney Fee Recovery

If your business is considering a lawsuit, defending a claim, or evaluating a settlement, attorney-fee recovery should be part of the strategy from the beginning.

Christensen & Jensen can help Utah businesses evaluate whether attorney fees may be recoverable, assess litigation risk, and build a strategy that fits the economics of the dispute. Contact us today.

FAQ: Attorney Fees in Utah Business Lawsuits

  • Not automatically. Utah follows the American Rule, which means each side pays its own attorney fees unless a contract, statute, rule, or recognized exception allows fee recovery.

  • Possibly. The contract language matters. Utah Code § 78B-5-826 may also make a one-sided attorney-fee clause reciprocal in civil actions based on a written contract, promissory note, or other writing.

  • Sometimes, but the standard is not easy. Utah Code § 78B-5-825 allows fees in certain civil actions if the action or defense was without merit and not brought or asserted in good faith. ³ Ordinary litigation frustration usually is not enough.

  • Common examples include Utah’s reciprocal contract-fee statute, bad-faith fee statute, Uniform Trade Secrets Act, consumer and advertising statutes, corporate-records statutes, LLC derivative-action statute, construction and wrongful lien statutes, and certain pattern-of-unlawful-activity and antitrust provisions.

  • Yes. Even when fees are recoverable, courts generally evaluate whether the requested amount is reasonable. Utah Rule of Civil Procedure 73 requires fee motions to include support for the amount claimed and the reasonableness of the fee.

  • Utah Rule of Civil Procedure 73 generally requires a motion for attorney fees no later than 14 days after judgment, subject to exceptions.

Are Fireworks Banned in Utah for the Fourth of July 2026?

Utah is facing extreme wildfire danger heading into the Fourth of July holiday. With major fires already burning, severe drought conditions across the state, and rapidly changing fireworks rules, residents and property owners should understand where fireworks are restricted and what legal consequences may follow if those restrictions are ignored.

Below is a practical overview of what is currently in effect, where the restrictions apply, and what Utah residents should do before using fireworks or planning holiday activities.

Quick answer: Personal fireworks are restricted statewide through July 5 unless a city or town designates a specific safe area. Stage 2 fire restrictions separately prohibit open fires and pyrotechnics on many public lands across Utah.

What Does Governor Cox’s 2026 Fireworks Executive Order Do?

On June 25, 2026, Governor Spencer J. Cox declared a state of emergency and signed an executive order establishing temporary statewide fireworks restrictions through July 5. The declaration came as Utah faced several overlapping wildfire risks, including record-low winter snowpack, severe or extreme drought across much of the state, critically dry vegetation, and strong winds.

By the time the order was issued, more than 141,000 acres had already burned across Utah. State officials also reported 376 fires are currently burning throughout the state, which at least 273 of were man made.

The executive order temporarily changes how Utah’s fireworks laws are enforced. It gives the State Forester (Jamie Barnes, director of the Utah Division of Forestry, Fire and State Lands) authority to impose a default statewide prohibition on personal fireworks during the July 2–5 window, when fireworks are normally allowed under Utah law.

Crucially, the order does not ban fireworks sales and does not affect permitted professional displays.

The order does not ban fireworks sales and does not affect permitted professional displays. It also allows mayors, after consulting with local fire officials, to designate specific areas where personal fireworks may still be used safely. If a city does not designate a safe area, the statewide prohibition applies by default.

Governor Cox acknowledged the weight of the decision, noting that he believes existing state law governing fireworks is workable in 99 out of 100 years but that 2026 is the exception. State officials have said they will reassess conditions before the Pioneer Day fireworks window, which runs from July 22–25. If drought and fire danger persist, restrictions may be extended.

What Are Stage 2 Fire Restrictions in Utah?

Stage 2 fire restrictions are separate from the fireworks executive order, but both are designed to reduce wildfire risk. These restrictions apply broadly across many state and federal public lands in Utah, including Bureau of Land Management lands, National Forests, National Park Service lands, and state and private unincorporated lands in many counties.

Under Stage 2 restrictions, the following are prohibited:

  • Open fires of any kind, including campfires, charcoal grills, pellet grills, and other ash-producing fuels, even in established fire rings, unless a specific exception applies.
  • Smoking, except inside an enclosed vehicle, trailer, or building, at a developed recreation site, or in an area that is paved or completely free of vegetation
  • Cutting, welding, or grinding metal in areas with dry vegetation
  • Operating motorcycles, chainsaws, ATVs, or other small internal combustion engines without an approved and working spark arrestor
  • Fireworks and pyrotechnic devices, including tracer ammunition and exploding targets, on BLM, Forest Service, and state public lands.
  • Pressurized gas stoves and grills with a shut-off valve are generally still permitted when used at least three feet from flammable material

Penalties can be significant. Violating Stage 2 restrictions on state lands may result in up to six months in jail and fines of up to $1,000. On federal lands, fines may reach $5,000 and can include imprisonment.

Where Do Utah Fireworks Restrictions Apply: Cities, Counties, and Public Lands?

The executive order and Stage 2 fire restrictions do not apply in the same way. They come from different legal authorities and cover different places.

State and federal public lands: Stage 2 restrictions generally apply to BLM land, National Forests, state parks, and National Parks. Campfires, open flames, and pyrotechnics are prohibited and are enforced by federal and state land management agencies.

Cities and municipalities: The executive order creates a default ban within city limits unless a mayor designates specific safe areas for fireworks after consulting with local fire officials.

Under ordinary state law, cities may restrict fireworks only in certain high-risk “wildland-urban interface” areas or land where development meets undeveloped wilderness. The governor’s emergency declaration temporarily reverses this.

Some towns may also have authority to impose full citywide bans because their entire incorporated area falls within the wildland-urban interface, where development meets undeveloped land. Stockton, in Tooele County, is one example and has banned fireworks for the rest of 2026.

The practical takeaway is simple: check your specific city’s rules before using fireworks. Local restrictions may be stricter than statewide rules.

Which Utah Cities Have Fireworks Bans or Restrictions in 2026?

Many Utah cities have announced complete bans on personal fireworks within city limits, with no designated safe zones. As of June 26, confirmed citywide bans include:

  • Salt Lake City
  • South Salt Lake
  • Holladay
  • Sandy
  • Draper
  • West Jordan
  • South Jordan
  • Riverton
  • Herriman (ban extended through July 21, with some permitted professional events)
  • Bluffdale
  • Provo (complete ban except permitted events such as the Stadium of Fire)
  • West Valley City
  • Midvale
  • Moab (under a separate emergency declaration)
  • Kearns (unincorporated and subject to the state’s default ban)

Salt Lake County Mayor Jenny Wilson issued a countywide ban covering cities within Utah’s most populous county.

Other cities have adopted partial bans in high-risk areas. Lehi restricts fireworks in foothill areas and along the Dry Creek corridor. St. George prohibits fireworks in designated hazardous terrain, including dry washes, hilltops, and areas near Snow Canyon Parkway. Saratoga Springs, Millcreek, and other communities have also restricted fireworks in foothill areas and near natural terrain.

This list is not exhaustive, and conditions are changing quickly. Residents should verify local rules directly with their city or check the Utah State Fire Marshal’s fireworks restricted areas page.

What Are the Legal Consequences for Starting a Wildfire in Utah?

Utah officials have emphasized that people who cause wildfires through illegal fireworks or careless conduct may face criminal charges and financial liability. That liability can include fire suppression costs, which have already exceeded $20 million this season.

The Iron Fire near Eureka shows why compliance matters. Officials believe the fire was ignited by illegal fireworks. It forced the evacuation of an entire city and burned more than 40,000 acres.

Under Utah law, someone who causes wildfire through negligent or unlawful conduct may be held civilly and criminally responsible. Potential liability can include firefighting costs, property damage, and injuries. If a minor causes a fire, parents may also face liability.

What Should Utah Homeowners, Businesses, and Property Managers Do Now?

Whether you are a homeowner, property manager, business owner, or planning a Fourth of July celebration, keep these points in mind:

  • Check local rules before buying or lighting fireworks. City designations can change quickly, and purchasing legal fireworks does not mean they can be used legally in your location.
  • Avoid fireworks and open flames on public lands. Stage 2 restrictions prohibit open fires and pyrotechnics on BLM, Forest Service, state park, and National Park lands throughout Utah.
  • Professional displays are still proceeding at many venues across the state. Attending a community show is the safest and most legally certain way to celebrate.
  • The restrictions may extend through Pioneer Day. State officials have indicated they will reassess conditions before the July 22–25 window. If drought conditions persist, restrictions could remain in effect.

Need Help After Fire Damage or a Fireworks-Related Incident in Utah?

If you suffered property damage from a wildfire, believe a neighbor or third party caused a fire near your property, or have questions about potential liability, the attorneys at Christensen & Jensen can help you understand your rights and obligations.

When a business partner starts cutting you out of the company, the shift usually happens in stages. You stop receiving emails, lose access to financial records, get left out of key decisions, or find that passwords and distributions have changed without explanation. Before long, you may still be an owner on paper while lacking real access, visibility, or influence. That is not just frustrating. It can threaten your ownership interest, your leverage, and the business itself.

This article explains what business owners in Utah should do when a partner, co-owner, shareholder, or controlling LLC member starts shutting them out of the business.

What a Business Partner Freeze-Out Usually Looks Like

A freeze-out can take different forms depending on the company structure and the personality involved.

Common warning signs of a Business Freeze-Out include:

  • Denial of access to financial records.
  • Exclusion from management decisions.
  • Changes to compensation or distributions.
  • Blocked access to company systems or premises.
  • Refusal to answer basic business questions.
  • Side deals with insiders.
  • Efforts to pressure you into selling your interest at a discount.

If this happens, do not assume it is just a personality conflict. It may be a business-control dispute with real legal consequences.

Look Closely at the Business Structure

LLC Member Rights vs. Shareholder Rights in Utah

Not every business partner dispute is legally the same. A 50/50 LLC deadlock, a minority shareholder freeze-out, and a partnership control dispute can involve different rights, duties, and remedies under Utah law.

A 50/50 LLC dispute looks different from a minority shareholder dispute in a corporation. A member-managed LLC creates different authority issues than a manager-managed LLC. A partnership may create broader default management rights than a corporation controlled by a board. That is why structure matters.

In Utah, LLC members may bring direct actions to enforce their rights and protect their interests under the operating agreement, the LLC statute, or rights arising independently of the membership relationship.¹ That can matter in a freeze-out case where the injury is personal to the owner being excluded, not just derivative harm to the company. The structure also affects the remedies that may be available.

Immediate Steps to Protect Your Ownership Interest

If your business partner is freezing you out, take these steps early:

Gather Operating Agreements, Bylaws, and Buy-Sell Terms

Before you do anything dramatic, you will need to check your signed governing documents. That usually means the operating agreement, partnership agreement, bylaws, shareholder agreement, buy-sell agreement, and formation records. You also want any amendments, written consents, meeting minutes, and ownership schedules.

These documents often answer the first critical questions:

  • Who has management authority?
  • What voting rights exist?
  • What information rights do owners have?
  • What approvals are required for major decisions?
  • Is there a buyout process?
  • Does the agreement require mediation or arbitration?

Do not guess about your rights. Check the documents first.

Preserve Evidence Before It Disappears

If you still have lawful access to internal systems, preserve what you can access without violating the law or the governing documents. Do not hack accounts or take confidential material you do not have the right to access. Save emails, texts, bank communications, accounting reports, distribution history, meeting notices, login changes, shareholder or member communications, and any messages showing you were excluded or ignored.

Create a Timeline

Create a timeline with the evidence of the freeze-out. This should include dates, decisions, access changes, and key communications. That timeline will help your lawyer much more than a general statement like, “He has been cutting me out for months.”

Ask for Records the Right Way

Do Not Rely on Verbal Assurances

In owner disputes, verbal statements lose value fast. If your partner says, “I’ll send the records later,” “You don’t need to worry about that,” or “We are handling it,” follow up in writing. Keep the tone of the email professional, without ranting or threatening them. Remember to request records, ask for the company’s position, confirm what access has been blocked, and ask for a deadline. A short, calm email often does more for your case than a long emotional one.

Utah Owner Rights to Inspect Books and Records

A freeze-out often succeeds because one side controls the information. Utah law gives owners important record-access rights, but the exact right depends on the type of entity.

For LLCs, Utah Code § 48-3a-410 gives members information rights, including the right in many circumstances to inspect and copy company records and to obtain information reasonably related to the member’s interest.² For corporations, Utah Code § 16-10a-1602 gives shareholders inspection rights³, and § 16-10a-1604 allows court-ordered inspection in some circumstances. Utah partnerships also carry statutory information rights.

In many Utah ownership disputes, control over the books and records becomes control over the story. A proper written demand can help restore transparency, force a response, and create a clear paper trail before litigation begins.

A proper written demand for records can do several things at once. It can clarify your rights, force a response, build a paper trail, and show a court later that you tried to address the issue before running into litigation.

Do Not Wait Too Long to Evaluate Remedies

Owners tend to wait to solve a freeze-out because they do not want to “blow up the business.” That instinct is understandable; it can also cost you leverage. The longer a freeze-out continues, the easier it becomes for the controlling side to reshape the record, move money, solidify control, and argue that the current arrangement is normal. Delaying action can weaken any later request for emergency relief.

Depending on the facts, the available remedies may include:

  • Formal demand for records.
  • Demand to stop unauthorized conduct.
  • Negotiated buyout.
  • Direct action for breach of rights.
  • Derivative claim in the right case.
  • Injunctive relief.
  • Judicial dissolution.

For Utah LLCs, a court may dissolve the company on a member’s petition if it is not reasonably practicable to carry on the company’s activities in conformity with the certificate of organization and operating agreement, or if those in control have acted, are acting, or will act illegally or fraudulently. Utah corporations also allow judicial dissolution in certain circumstances, including illegal, oppressive, or fraudulent conduct by those in control.

That does not mean dissolution is always the best move. Often it is not. But it matters as leverage and, in some cases, as a necessary remedy.

Focus on Business Goals, Not Just Personal Vindication

Owners’ disputes get emotional fast. That is normal. You may feel betrayed, angry, and blindsided. But if you want a good outcome, you need to get clear on the actual goal.

Ask yourself:

  • Do I want access and transparency?
  • Do I want my management rights restored?
  • Do I want the conduct to be stopped?
  • Do I want a buyout?
  • Do I want out of the business entirely?
  • Do I want to preserve the company if possible?

The right legal strategy depends on the answer. Some disputes call for a records demand and negotiation. Others require immediate injunctive pressure or litigation because trust has collapsed and the financial risk is growing. The goal should drive the strategy.

When to Call a Utah Business Litigation Lawyer

You should call a Business Litigation Lawyer early in the freeze-out process. If you are losing access to records, distributions, decision-making, or company information, the issue has already moved beyond a routine disagreement. A business litigator can help you figure out whether you are dealing with a documentation problem, a control dispute, a fiduciary-duty problem, a buyout fight, or a case headed toward dissolution.

The earlier you assess the problem, the more options you usually have.

Take a Utah Business Partner Freeze-Out Seriously

A freeze-out rarely fixes itself. When a business partner starts cutting you out, the dispute usually gets worse unless someone forces clarity. That does not always mean filing suit on day one. It does mean acting deliberately, preserving evidence, understanding your rights, and making decisions based on the company documents and the law, not just frustration.

If your business partner is freezing you out, Christensen & Jensen can help you evaluate your rights, protect your ownership interest, and decide what strategy makes the most sense for your business and your goals. Contact us today.

FAQ: Business Partner Freeze-Out Disputes

  • It usually means a partner, co-owner, member, or controlling group is cutting you off from information, decisions, money, or practical control of the business.

  • Not automatically. Utah law gives many owners statutory rights to inspect records, but the exact scope depends on whether the entity is an LLC, corporation, or partnership and on the governing documents.

  • A 50/50 structure often makes disputes more serious because deadlock can stop the business from functioning. In some cases, that may support stronger remedies, including court intervention or dissolution, depending on the entity and facts.

  • Often yes. A written demand can clarify your rights, force a response, and create a useful record. But the right timing depends on the facts and whether urgent harm is already happening.

  • In some cases, yes. Utah’s LLC statute expressly permits a member to bring a direct action to enforce the member’s rights and protect the member’s interests. The exact claim depends on the entity, the governing documents, and the nature of the harm.

  • Potentially. Utah law allows judicial dissolution in some LLC and corporate disputes, including situations where it is no longer reasonably practicable to carry on the business in conformity with the governing documents or where those in control act illegally, fraudulently, or, in the corporate context, oppressively.

Attorney Gabriell Sabalones was appointed to the board of the Utah Council on Conflict Resolution (UCCR), where she will help lead a new initiative focused on reshaping how the legal community understands and practices conflict resolution.

Her appointment continues Christensen & Jensen’s longstanding involvement with UCCR. Senior shareholder Steve Kelson served as UCCR president for 15 years and also spent many years on the board, while senior shareholder Nate Alder likewise served as a board member for many years.

Sabalones brings a broad conflict-resolution background to the board. Her practice sits at the intersection of litigation and dispute resolution, and she holds dual mediation certifications, including specialized 40-hour training in transformative mediation. She has applied those skills in landlord-tenant mediations, individual conflict coaching, and community dialogue work. She also serves as a conflict-resolution consultant to Mormon Women for Ethical Government, a national nonpartisan nonprofit.

Her academic background includes advanced negotiation training at Harvard, a certificate in conflict narratives from Hebrew University of Jerusalem, and a Bachelor of Arts in International Cultural Studies with emphases in Intercultural Peacebuilding and Communication.

She is now channeling that experience into UCCR’s Transformative Practices Initiative, which she leads alongside Steve Kelson and Carolynn Clark, a UCCR board member and experienced mediation trainer.

A New Initiative for a Changing Field

The Transformative Practices Initiative (TPI) is designed to broaden the legal community’s understanding of mediation — not just as a settlement tool, but as a genuine resource for conflict resolution.

The initiative has three core components:

  • Expanded continuing legal education opportunities.
  • A centralized digital home for transformative mediation.
  • A library of shareable practice materials for new transformative mediators.

Education is at the heart of the initiative. Many attorneys, judges, and law students encounter mediation primarily in its transactional form, where success is measured by whether the parties sign an agreement. The TPI aims to broaden that understanding by introducing legal professionals to a fuller range of mediation styles, especially transformative mediation, which focuses less on pushing parties toward settlement and more on improving the quality of communication between them.

“Transformative mediation is not just for divorce cases,” Sabalones said in a blog post on the subject. “It can be a strong option in any situation involving a former, current, or future relationship — probate disputes, business partnerships, workplace conflicts, neighbor disputes, and more. Wherever there is or will be repeated interaction, transformative mediation may be a better match than evaluative or facilitative approaches.”

The initiative also recognizes that attorneys are often the first — and sometimes the only — conflict resolution resource that the public knows to seek out. By equipping attorneys with a clearer understanding of different mediation models and connecting them with a directory of qualified practitioners, the initiative aims to create a more effective referral ecosystem. Clients who are not well-suited for litigation will have a constructive alternative, and practitioners certified to practice in the transformative model will have increased visibility and access to referrals.

Monthly Brown Bags: CLE Credit and Ongoing Education

In addition to her board role and initiative leadership, Sabalones has been appointed to oversee UCCR’s monthly “brown bag” series — informal lunch sessions that provide continuing legal education credit for lectures on conflict resolution topics. The brown bags are designed to meet legal professionals where they already learn, offering accessible, credit-bearing programming that introduces new perspectives on conflict and its resolution.

The sessions are expected to cover a range of topics relevant to practitioners across different areas of law, from family and probate matters to business and employment disputes. By integrating conflict resolution education into the continuing legal education framework, the initiative lowers the barrier for attorneys who might otherwise never encounter alternatives to the adversarial model.

A Collaborative Vision

The TPI is explicitly designed as a collaborative effort — not a centralized authority, but a community resource. Transformative mediators will be invited to participate, with opportunities to have their profiles listed on the initiative’s digital platform and to contribute to a growing library of practice tools, including agreements to mediate, intake forms, and safety planning resources.

“Transformative mediation skills are presently underutilized in Utah mediations and can greatly assist parties with ongoing relationships” said Steve Kelson. “Whether you are an attorney or mediator, learning Transformative Practice tools assists in communicating with clients, parties, counsel, to address underlying issues and assist in meaningful long-lasting resolution.”

Sabalones’s appointment reflects both the depth of her professional background and the timeliness of the initiative she is helping lead. As Utah’s legal community continues to grapple with rising social conflict and the limits of purely adversarial resolution, efforts to expand and strengthen the state’s conflict-resolution landscape are becoming increasingly urgent.

The TPI is positioned to meet that need—not by replacing what already works, but by building out what has been missing. It also extends work already underway at Christensen & Jensen, which has three certified transformative mediators on its roster, more than any other law firm in Utah. Individuals, businesses, and attorneys interested in learning more about transformative mediation or working with a certified transformative mediator are encouraged to contact Christensen & Jensen to connect with a member of the firm’s dispute resolution team.

Getting sued can rattle even a well-run business. Most business owners do not deal with lawsuits often. When you receive a summons and complaint, the first instinct often looks like one of three bad options: ignore it, fire off an angry response, or assume the facts will sort themselves out later. None of those moves helps.

The first week matters. Early mistakes can cost you leverage, increase fees, and create avoidable problems with evidence, insurance, and court deadlines. In Utah, a defendant generally must file an answer within 21 days after service inside the state and 30 days after service outside the state, unless a statute or court order says otherwise. ¹

This article explains what businesses should do in the first week after being sued in Utah.

Day 1: Do Not Ignore the Lawsuit

Ignoring a lawsuit is one of the first mistakes businesses can make. A lawsuit does not disappear because you think the claim is fraudulent or false. If you miss the deadline to respond to the complaint, the plaintiff (the party suing) can seek a default judgment against the defendant (the party being sued). A default judgment is an automatic win for the plaintiff because the defendant didn’t oppose the case.²

When you receive a lawsuit, start with the basics:

  • Confirm the date and method of service.
  • Confirm exactly who got served.
  • Confirm which entity the plaintiff named.
  • Confirm which court the case sits in.

What location the court case sits in is very important. A commercial case may proceed in Utah state courts, federal court, or, in some cases, the Utah State Business and Chancery Court specialized forum for certain complex business and equitable disputes.³

Day 2: Gather the Core Documents

Once you know about a lawsuit, you need to preserve evidence. That means more than keeping the contract. It means preserving the full record, including emails, text messages, internal messages, drafts, notes, invoices, change orders, payment records, calendars, and relevant electronically stored information.

Tell the right employees, in writing, not to delete anything related to the dispute. That includes routine deletion practices. A good litigation hold should reach the people who touched the events, not just senior management.

If your business uses Slack, Teams, QuickBooks, project management tools, or cloud storage, preserve those sources too. Commercial cases often turn on ordinary business records that nobody thought looked important at the time.

Build a clean starter file with:

  • Summons and complaint.
  • All relevant contracts and amendments.
  • Key emails and text messages.
  • Invoices and payment records.
  • Notice of default or termination.
  • Insurance policies.
  • Ownership or organizational documents if entity issues may matter.
  • A chronology of what happened.

A short chronology helps more than most clients realize. Two pages of clear facts can save a lot of wasted legal time.

Day 3: Check Insurance Immediately

Many businesses wait too long to check their insurance. If a claim may implicate coverage, tender it right away. That can include:

  • General liability policies.
  • Errors and omissions coverage.
  • Director and officer coverage.
  • Cyber coverage.
  • Employment practice coverage.
  • Other specialty policies.

Even if you suspect the insurance carrier will deny coverage, do not make that decision yourself. Late notice can create a second problem you do not need.

Day 4: Stop Casual Internal Commentary

Once a lawsuit is filed, loose talk becomes evidence. That includes:

  • Sarcastic emails.
  • “Hot takes” in group chats.
  • Rewritten narratives after the fact.
  • Broad internal accusations about who caused the problem.

Do not coach employees or any witnesses. Do not clean up bad facts. Do not create a polished story that did not exist before. Those moves backfire. Instead, direct employees to preserve documents and route communications through the right internal contact and outside counsel.

Day 5: Evaluate the Forum and Early Legal Strategy

Not every case calls for the same response. Some cases should move toward quick resolution. Others need an immediate aggressive defense. Others may belong in mediation or arbitration rather than court, depending on the contract. Your attorney should assess questions like these early:

Is the Plaintiff suing the right entity?

Plaintiffs sometimes name the wrong LLC, an inactive entity, or the wrong party to the contract.

Does the contract require mediation, arbitration, or a specific venue?

A forum-selection clause or arbitration clause can change the whole case.

Are there jurisdiction or service issues?

Defective service of process and wrong forum problems matter, and they need to be analyzed quickly.

Do you have counterclaims?

A business that only reacts can lose leverage. Some defendants have strong counterclaims against the plaintiff.

Is an early motion worth it?

A motion to dismiss can help the right case, but not every case benefits from one.

Day 6: Prepare the Right Response, Not Just Any Response

A rushed answer can hurt you. Your first filing should protect defenses, preserve options, and fit the actual strategy. Under Utah Rule of Civil Procedure 12(b), certain defenses may be raised by motion before filing an answer, including:

  1. Lack of jurisdiction over the subject matter.
  2. Lack of jurisdiction over the person.
  3. Improper venue.
  4. Insufficiency of process.
  5. Insufficiency of service of process.
  6. Failure to state a claim upon which relief can be granted.
  7. Failure to join an indispensable party.

That does not mean every case should start with a Rule 12(b) motion. It means you need a deliberate decision.

Day 7: Build the Business, Not Just the Legal Case

By the end of the first week, you should understand more than the pleadings. You should have a working view of:

  • Your best facts;
  • Your worst facts;
  • The likely business cost of the dispute;
  • Whether a commercial relationship can still be saved; and
  • What outcome makes sense.

Litigation strategy should match business reality. Sometimes the right answer is to fight. Sometimes it is to negotiate hard and early. Sometimes it is to solve the immediate injunction or payment problem first and worry about the rest later.

The point is simple: do not let the plaintiff define the case before you understand your own.

What If a Default Judgment Has Already Happened?

Do not assume the case is over. If a plaintiff has already obtained an entry of default or default judgment against your company, you should act quickly. Under Utah Rule of Civil Procedure 55(c), a court may set aside an entry of default for good cause. If the court has already entered a default judgment, relief generally falls under Rule 60(b), which allows a court to set aside a judgment for reasons such as mistakes, inadvertence, surprise, excusable neglect, fraud, or if the judgment is void. A motion to set aside default or judgment must be filed within a reasonable time, and some Rule 60(b) grounds carry a 90-day outside limit.

That does not mean every default judgment can be undone. It does mean a business should not sit still and assume nothing can be done. Speed matters here. The longer a company waits, the harder it can become to explain the delay and persuade the court to reopen the case. If a default judgment has been entered into against your business, you should speak with a business litigation attorney right away to assess whether relief is still available.

When Should I Call a Business Litigation Attorney?

You should call a business litigation attorney early in a business lawsuit. If your business had been sued in Utah, you should involve counsel before the deadline shrinks and before internal communications create new problems. Utah courts require defendants to respond quickly, and early procedural choices can shape the case from the start.

A lawsuit against a business does not just create legal risk; it creates business risk. The first seven days often determine whether your company starts from a position of control or from a position of catch-up. If you act quickly, preserve the records, and make deliberate decisions about deadlines, insurance, forum, and legal strategy, you put your business in a much stronger position.

If your business has been sued in Utah, Christensen & Jensen can help you evaluate the claims, protect your defenses, and respond with a strategy that fits both the case and your business objectives. Contact our team to discuss your options.

FAQ: Utah Business Lawsuits

  • Usually, 21 days after service in Utah and 30 days after service outside Utah, unless a statute or court order sets a different deadline.

  • Yes. However, filing a rushed or incomplete answer can waive defenses or create strategic problems. The better approach is to have a lawyer to help you understand the actual claims, deadlines, and available defenses before filing something that locks your business into a disadvantageous position.

  • The plaintiff may seek a default judgment if no timely response is filed.

  • Do not assume the case is over. Under Utah Rule of Civil Procedure 55(c), a court may set aside an entry of default for good cause, and Rule 60(b) may allow relief from a default judgment in certain circumstances. If a default or default judgment has already been entered, your business should get legal advice immediately.

  • You still need to respond. Many defendants ignore lawsuits because they assume the facts will eventually clear things up. That is a mistake. A false claim can still lead to a default judgment if your business does not answer or otherwise respond on time.

In Utah, you may be handed an offer letter or contract on day one of a new job with terms you have never had to think about before. Whether you are a new doctor starting residency, a computer engineer in the middle of a hiring process, a salesperson joining a new enterprise, or one of the approximately 7% of workers classified as independent contractors,1In November 2024, the Bureau of Labor Statistics reported that 7.4% of workers were independent contractors (https://www.bls.gov/news.release/conemp.nr0.htm) the fine print can affect your pay, your schedule, your side projects, and where you can work next. This article breaks down Utah employment contracts and highlights the clauses to review before you sign.

Utah At-Will Employment and Unwritten Contracts: The Basics

Many employers do not use written employment contracts. The default assumption in every American jurisdiction except Montana is that employees are “at-will.”2Mont. Code § 39-2-904(b)(https://mca.legmt.gov/bills/mca/title_0390/chapter_0020/part_0090/section_0040/0390-0020-0090-0040.html). At-will employment means that you can freely give up your job to do something else at any time. It also means that you can be fired at any time, for almost any reason, or even for no reason at all (if the reason isn’t illegal, like discrimination based on a protected class membership, such as race or religion).

However, even when you are an at-will employee, your terms of work and compensation are governed by a contract. That may seem counterintuitive, but it makes more sense when you understand that the terms of unwritten contracts can be implied through what people do regularly.

Implied Terms Through Consistent Practice

What if your employer pays you the same $2,500 every two weeks, and you come into work every weekday when you are expected to? Then, your unwritten implied contract is that you’ll work when expected to for $2,500 every two weeks.

However, unwritten employment contracts like this can be altered at any time, and if you continue to work after the altered term is enacted by your employer, through those repeated actions, you’re continuously agreeing to the new terms and conditions of work.

Changed Terms Accepted by Continued Work

What if your employer starts having you come into work on Saturday-Wednesday, instead of Monday-Friday, and only pays you $2,400 every two weeks? Well, as long as you keep showing up for work, that’s your new contract.

Because your employment is at-will, you’re free to quit if you don’t like the new terms, so most of the time, employers do not cut pay like that. Employers also must comply with laws containing various government requirements, such as federal payroll taxes, reporting to the state government when they’ve hired someone, and overtime pay requirements.

Written Employment Contracts in Utah: Offer Letters, Key Terms, and What’s Binding

Written employment contracts are common enough, but many workers do not have one, especially in the kind of service jobs that many people work in when they are younger. “Handshake deals” and verbal agreements are much more common. So, as a young professional, you may be encountering a written employment contract for the first time.

Written employment contracts can be simple or very complex. A one-page offer letter with your salary and certain terms of employment is a written employment contract. Notably, a written contract like that would not change your default status of at-will employment. Your employment contract could also take the form of a thick ream of paper printed double-sided with dense legal-ese. It really depends on your employer, their legal sophistication, and their expectations.

How are Contracts Built?

Contracts are built on a simple exchange: “I give you something in exchange for you giving me something.”

In written employment contracts, employers usually give a promise of a certain rate and method of pay, whether a fixed annual salary or an hourly wage. In exchange, the employer expects your promise to abide by certain terms and conditions of work, which they write out in the contract.

Sometimes those terms and conditions are clearly stated. Other times, those terms and conditions are obscured, for example:

  • Clear terms: “You will work 9:00 AM to 5:00 PM, Monday through Friday, except state and federal holidays.”
  • Obscured terms: “Employee agrees to abide by Employer’s Social Media Policy.” The employer may not have given you a “Social Media Policy”, either in writing or as an oral explanation, at the point that you’re being asked to sign the employment contract. Sometimes, they might not even have one written down.

Things to Look for in Your Written Employment Contract

Pay Structure

Ideally, your contract will:

  • Clearly explain how you are paid.
  • When you are paid.
  • What conditions apply.

Pay terms may include:

  • Bonuses.
  • Commissions.
  • Equity.
  • Incentive compensation.

Pay close attention to:

  • Whether bonuses are discretionary or guaranteed.
  • Whether commissions are earned when a deal is signed or only when payment is collected.
  • What happens if your employment ends mid‑period.

Ambiguity in pay structure almost always favors the employer later. Written clarity matters because wage and hour laws typically enforce what the contract says, not informal assurances. Under federal law, non‑discretionary compensation is often treated differently than discretionary bonuses, especially for overtime and minimum‑wage purposes.3See Fair Labor Standards Act (https://www.dol.gov/agencies/whd/flsa).

Exempt vs. Non-Exempt

One of the most important labels in an employment contract is whether you are “exempt” or “non‑exempt.”

Exempt refers to whether you are covered by certain wages and hour laws. Employers often describe exempt status as a benefit or sign of professionalism, but legally, it is a classification with strict requirements. Under the Fair Labor Standards Act, an exemption depends on both pay level and actual job duties, not just your job title.4See id. If your contract says you are exempt, your job responsibilities should genuinely match one of the recognized exemption categories, such as executive, administrative, or professional work.529 CFR Part 541 (https://www.ecfr.gov/current/title-29/part-541).

Non‑exempt employees are entitled to overtime pay for hours worked over 40 in a workweek, while exempt employees generally are not.

Misclassification is common and can be costly for employees who routinely work long hours without overtime.

Conflict of Interest, Non-Compete, and Non-Solicitation Clauses

Many employment contracts contain restrictions on what you may do during and after employment.

Conflict‑of‑interest clauses may limit:

  • Outside work.
  • Side businesses.
  • Volunteer activities.

Non‑compete clauses attempt to restrict where you can work after leaving or whether you can work in the same industry, while non‑solicitation clauses may prevent you from contacting clients or coworkers to recruit them after you leave a job. These provisions are highly state‑specific and frequently overbroad. Such clauses may ultimately be unenforceable or only partially enforceable.

When reading clauses, pay close attention to:

  • Duration.
  • Geographic scope.
  • What conduct is prohibited.

Do not assume these clauses are “standard” or harmless.

Intellectual Property: Invention Assignment and Work-for-Hire Terms

Employment contracts often include provisions stating that anything you create related to your work belongs to the employer. This can include copyrightable creative works and inventions. Provisions such as these are especially common in fields such as graphic design, computer programming, and medical sciences.

“Work‑for‑hire” language applies mainly to copyright law and does not automatically transfer patent rights, which usually start with the inventor unless assigned by contract.

Invention assignment clauses can be extremely broad, sometimes covering ideas developed on personal time or using general skills. If you have side projects, freelance work, or entrepreneurial goals, these clauses deserve careful review. At a minimum, understand what must be disclosed, what is excluded, and whether pre‑existing work is protected.

Other Documents Incorporated by Reference

Finally, watch for terms referencing documents besides the one in front of you, especially language stating that other documents, such as employee handbooks, employer policies, or equity compensation plans, are “incorporated by reference.” This means those documents become legally binding even if they are not attached. Employers can sometimes amend these documents unilaterally, changing key terms after you have already signed. You should ask to review every incorporated document before agreeing and confirm whether future amendments automatically apply to you. Even if you have not seen it, you may still be bound by it.

W-2 Employees vs. 1099 Independent Contractors: Demystifying the Difference

One reason you may be signing a contract for your job is that you are an “independent contractor.” Independent contractors are also sometimes called “1099 contractors,” after the federal tax form that they get from companies that hire them.

What makes a worker an independent contractor rather than an “employee?”

Employees (or “W-2 employees,” after their federal tax form) get a lot more protection from labor and employment laws, including receiving required health benefits of some kind for full-time employees, employer-managed income tax and Social Security withholding, and collective bargaining rights.

Independent contractors, by contrast, just get paid their contracted amount and must pay all their own taxes out of that amount. Their benefit is their ability to control their work. That is the main difference between an independent contractor and an employee. It’s in the name: “independent.”

The more independence you have in your terms of work, the more likely you are to be correctly classified as an independent contractor. If the person who hires you doesn’t tell you how to get the job done, with what tools, when exactly you are required to do which part of the work, etc., then you are probably an independent contractor. The more your work is controlled by your employer, the more likely you are to be properly classified as a W-2 employee.

Get Help Reviewing a Utah Employment Contract Before You Sign

An employment contract can shape your pay, flexibility, and career options long after your first day on the job. If you are considering an offer letter, a non-compete or non-solicitation clause, an invention assignment, or a contractor agreement, it is often worth getting a second set of eyes on the fine print—especially because Utah rules can differ from those of other states.

For guidance tailored to your situation, contact Christensen & Jensen to review your agreement, explain key terms, and help you identify issues to negotiate before you sign.

A sexual assault can upend every part of your life. You may feel unsafe on campus, struggle to attend classes, sleep, study, or stay in school. The school may make you feel like you need to carry the harm quietly while everyone else moves on. You may also assume the school’s internal process is your only option.  In some cases, it is not.

This article explains what Title IX may protect, what steps can help protect your rights, and when to speak to a lawyer.

Understanding Your Rights Under Title IX

A Title IX lawsuit usually focuses less on the assault itself and more on the institution’s response after the school had the kind of notice the law requires.

“Title IX prohibits sex discrimination by recipients of federal education funding.”1Jackson v. Birmingham Bd. of Educ., 544 U.S. 167, 173, 125 S. Ct. 1497, 1503, 161 L. Ed. 2d 361 (2005). The statute provides: “No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance,” with limited exceptions.220 U.S.C.A. § 1681 (a).

When a School’s Response Becomes a Legal Issue

Title IX protects a student’s ability to access education on equal terms. If a school knows about serious sex-based misconduct and responds in a way that leaves a student unable to attend class safely, remain in housing, participate in campus life, or continue school on equal footing, that failure may create a legal problem.

The federal law recognizes a private right to sue under Title IX and has confirmed that money damages can be available in an appropriate case, but a school does not violate Title IX every time an assault happens.3See Farmer v. Kansas State Univ., 918 F.3d 1094, 1098 (10th Cir. 2019) (“Title IX is enforceable, not only by federal administrative agencies, but also through private causes of action”); see also Doe v. Univ. of Denver, 1 F.4th 822, 828 (10th Cir. 2021) (“Where sex-based discrimination is intentional, Title IX is enforceable through a cause of action for which money damages are available”). However, when a school has an actual notice, for example, one student sexually harassing another student, but it responds in a clearly unreasonable way or deliberately indifferent way, the law may allow the student to seek relief against the school.4Farmer v. Kansas State Univ., 918 F.3d 1094 (10th Cir. 2019); see Davis Next Friend LaShonda D. v. Monroe Cnty. Bd. of Educ., 526 U.S. 629, 119 S. Ct. 1661, 143 L. Ed. 2d 839 (1999) (holding “ a private damages action may lie against a school board under Title IX in cases of student-on-student harassment, but only where the funding recipient acts with deliberate indifference and the harassment is so severe that it effectively bars the victim’s access to an educational opportunity or benefit”). Overall, a student needs to show facts like these:

  • The school had actual notice through the right kind of official.
  • The school had the power to do something.
  • The school responded with deliberate indifference, not just an imperfect decision.
  • The misconduct was serious enough to interfere with the student’s education.

Key Elements of a Title IX Claim

To establish a Title IX claim of deliberate indifference to student-on-student sexual harassment, the plaintiff must prove that the school “(1) had actual knowledge of, and (2) was deliberately indifferent to (3) harassment that was so severe, pervasive and objectively offensive that it (4) deprived the victim of access to the educational benefits or opportunities provided by the school.” 5Doe v. Sch. Dist. No. 1, Denver, Colorado, 970 F.3d 1300, 1308 (10th Cir. 2020) (quoting Murrell v. Sch. Dist. No. 1, Denver, Colo., 186 F.3d 1238, 1246 (10th Cir. 1999).

What “Actual Notice” Means in Practice

Actual notice usually means the right school official knew enough about the situation to trigger an institutional response, for example, your school’s Title IX Coordinator. Not every conversation with every employee counts the same way.6See Rost ex rel. K.C. v. Steamboat Springs RE-2 Sch. Dist., 511 F.3d 1114 (10th Cir. 2008) (holding student’s statement that boys were bothering her did not provide district with actual knowledge of sexual harassment for purposes of Title IX”). Who knew what, when they knew it, and what school authority they had can make or break the case. That is one reason documentation matters. If you reported the assault to the Title IX office, dean of students, housing official, campus police, or another administrator with authority, save that record. If you told a professor who forwarded it, save that too. Dates matter. Names matter. Emails matter.

How Courts Define “Deliberate Indifference”

Deliberate indifference does not mean the school made a small mistake.7See Farmer v. Kansas State Univ., 918 F.3d 1094, 1099 (10th Cir. 2019) (Title IX does not require a federal funding recipient to acquiesce in the particular remedial action a victim seeks).  It means the school’s response was “clearly unreasonable in light of known circumstances.”8Davis Next Friend LaShonda D. v. Monroe Cnty. Bd. of Educ., 526 U.S. 629, 630, 119 S. Ct. 1661, 1665, 143 L. Ed. 2d 839 (1999) A student may raise concern about deliberate indifference when a school:

  • Ignores the report.
  • Delays for no good reason.
  • Discourages reporting.
  • Refuses supportive measures without explanation.
  • Fails to enforce protective steps.
  • Lets retaliation continue.
  • Or handles the matter in a way that leaves the student without meaningful access to education.

Not every disappointing outcome proves deliberate indifference. But a pattern of inaction, deflection, or meaningless process can support a serious claim.

Warning Signs a School May Be Failing You

If your college or university mishandled a sexual assault report, do not wait for the situation to sort itself out. Start building a clean factual record. A strong case usually depends on disciplined fact development, not just understandable outrage. That is why early documentation can make a real difference.

Steps to Protect Your Rights After Sexual Assault

Document Everything

You should save all evidence of the event, including:

  • Emails.
  • Texts.
  • Screenshots.
  • Call logs.
  • Social media messages.
  • Class communications.
  • Housing notices.
  • Medical records.
  • Counseling records.
  • And any school determinations.

Keep everything in one folder.

Write a Timeline While the Facts Still Feel Fresh

Write down a timeline while the facts still feel fresh.

Include:

  • When the assault happened.
  • When you reported it.
  • Who you told.
  • What each person said.
  • What the school promised.
  • What the school actually did.
  • When delays happened.
  • How the situation affected class, housing, safety, and daily life.

You do not need perfect writing. You need accurate facts.

Identify Who at the School Knew

Make a list of every person you talked to about harassment. Include their title, the date, what you told them, and what they said they would do.

This step matters because Title IX cases often turn on notice. The cleaner your record, the stronger your position.

Document the Impact on Your Education

Do not stop at “the school handled this badly.” Show the consequences. For example, document whether you:

  • Missed class.
  • Changed housing.
  • Dropped courses.
  • Lost a scholarship.
  • Withdrew from activities.
  • Avoided parts of campus.
  • Suffered grade declines.
  • Or considered transfer or leave.

A school’s Title IX liability is tied to the denial of equal access to education. Your real-life disruption helps tell that story.

Get Legal Advice Early

A lawyer can evaluate whether the school’s conduct supports a Title IX claim, whether other claims may exist under state or federal law, what evidence you should secure now, and how to avoid steps that weaken your case.

When to Consider Taking Legal Action

If your college or university ignored, minimized, delayed, or mishandled your sexual assault report, you may have more options than the school wants you to believe.

The school’s internal process does not define the full scope of your rights. Title IX exists to protect students’ equal access to education, and in the right case, the law allows a student to seek relief when a school responds with deliberate indifference to serious sex-based misconduct.

Early action matters. The sooner you preserve records, organize the timeline, and get legal advice, the better you can protect your rights.

If your school’s response disrupted your education and you want to understand your legal options, contact Christensen & Jensen. Our attorneys can evaluate your situation, explain whether Title IX or other legal claims may apply, and help you decide what steps make sense next.

Title IX Lawsuits Against Colleges and Universities

  • Yes, in the right case. The Supreme Court has recognized a private right to sue under Title IX and has held that money damages may be available in appropriate cases.

  • No. Title IX applies to education programs and activities that receive federal financial assistance. That often includes public institutions and many colleges and universities outside the public-school context.

  • Save everything: emails, texts, screenshots, timeline notes, school notices, housing records, class records, medical records, counseling records, and appeal materials. In many Title IX cases, the paper trail decides what you can prove.

  • Courts look closely at whether the misconduct and the school’s response interfered with equal access to education. That can include missed classes, housing disruption, academic decline, withdrawal from activities, transfer pressure, or leaving school altogether.

  • No. You can seek legal advice before, during, or after the school process. Early advice can help you preserve evidence and avoid avoidable mistakes while the internal process continues.

You are in a dispute with a neighbor, a co-parent, a business partner, or a family member. Someone suggested mediation. You looked it up, maybe even scheduled a session — and you went in hoping for something more than just a number to agree on. You may want to be heard by the other party or have them understand your perspective. Maybe you wanted to feel like the relationship, or at least the possibility of one, was not completely gone.

What you may not have known — and what most people aren’t aware of — is that “mediation” isn’t just one thing. There are many fundamentally different approaches to it, with different goals, different methods, and outcomes. The style of mediation you choose matters enormously, and yet most people take whatever is offered without knowing there is another option.

This guide explains the three main models (evaluative, facilitative, and transformative) and offers a framework for choosing the one that fits your situation. This article will pay particular attention to transformative mediation because it is the least common, the least understood, and in some cases the most valuable.

The Landscape of Mediation in Utah

In Utah, mediation is practiced almost exclusively as a transactional process. The goal is settlement — a signed agreement that resolves the immediate legal or financial dispute. The mediator’s job, in this model, is to help the parties reach a number they can both live with and move on. Whether the conflict that produced the dispute is addressed, whether the relationship between the parties survives, whether anyone feels genuinely heard — these are not part of the mandate.

This transactional approach draws primarily on evaluative mediation, with occasional appearances by facilitative mediation sprinkled in. It is efficient, and for purely legal disputes between parties who have no ongoing relationship, it can be entirely appropriate. But for the many disputes that involve people who will continue to share a life — co-parents, neighbors, family members, long-term business partners — it often resolves the case while leaving the conflict intact. Parties may leave with an agreement but without any real change in how they relate to one another.

Utah mediations also commonly use a shuttle format, in which the parties remain in separate rooms and the mediator carries information between them. This is a logistical feature, not a philosophical one — shuttle sessions can be either evaluative or facilitative in style. Transformative mediation, by contrast, works toward something the transactional model does not attempt: bringing the parties into the same room, in direct conversation, with the support they need to work through the conflict together.

The Three Types of Mediation Explained

Evaluative Mediation: The Expert in the Room

Evaluative mediation is the model most closely modeled on litigation. The mediator — often a retired judge or experienced attorney — takes an active role in assessing the merits of each party’s position. They offer opinions about likely court outcomes, point out weaknesses in each side’s case, and apply pressure toward a settlement they believe is realistic and fair. The goal is resolution, defined as a signed agreement.

If this sounds familiar, it should — evaluative mediation bears a strong resemblance to arbitration. In arbitration, a neutral third party hears both sides and renders a binding decision. Evaluative mediation follows the same logic, with one key difference: the mediator’s assessment is not binding. They can tell you what they think a court would do, and they can apply considerable pressure, but they cannot force an outcome. The parties still have to agree. In practice, though, that distinction can feel thin when a forceful mediator is in the room.

This approach works well in purely legal or financial disputes where the parties have no ongoing relationship and simply want a number. It is less well-suited to disputes where feelings, trust, and long-term relationship dynamics are at stake. The mediator’s role is essentially to tell the parties what a reasonable outcome looks like, rather than helping them discover it themselves.

Facilitative Mediation: The Neutral Guide

Facilitative mediation takes a step back from evaluation. The mediator does not offer opinions or predict court outcomes. Instead, they structure a process that helps the parties identify their own interests, communicate more clearly, and generate options for resolution. The mediator asks questions, reflects what they hear, and keeps the conversation productive, but the parties drive the outcome.

This is a significant improvement over the evaluative model for many disputes, because it respects the parties’ autonomy and tends to produce agreements that both sides want to honor. However, facilitative mediation still treats the resolution of the dispute — the agreement — as the primary goal. It may not address the deeper dynamics that caused the conflict in the first place.

Transformative Mediation: Changing the Conflict Itself

Transformative mediation rests on a fundamentally different theory of conflict. Where evaluative and facilitative mediation focus primarily on reaching an agreement, transformative mediation focuses on changing the quality of the conflict interaction itself. The underlying premise is that destructive conflict — the kind that escalates, damages relationships, and leaves people feeling powerless and unheard — arises from a breakdown in two core human capacities: the ability to act with confidence and clarity on one’s own behalf (called “strength”), and the ability to consider and respond to the perspective of another (called “responsiveness”).

When those capacities are restored, something shifts. The conversation changes. People stop talking past each other and start hearing one another. Agreements often follow, but they are a byproduct of a transformed interaction, not the forced endpoint of a managed process.

A Quick Comparison:

Evaluative — Mediator offers opinions; goal is settlement; expert-driven.

Facilitative — Mediator guides the process; goal is agreement; party-driven.

Transformative — Mediator supports interaction; goal is changed communication; relationship-driven.

How Transformative Mediation Works at Christensen & Jensen

Pre-Mediation Sessions

Our firm’s approach to transformative mediation includes a dimension that most programs do not: structured pre-mediation sessions held before the parties ever meet. These sessions are not simply intake calls or paperwork reviews. They are substantive and educational conversations held individually with each party, in which we introduce the theory and practice of conflict itself.

In pre-mediation, each participant learns how destructive conflict patterns develop, why people say and do things in conflict that they later regret, and what it looks and feels like when a conversation shifts from destructive to constructive. We talk through what to expect in the joint session and how to use the process effectively. By the time the parties come together in the plenary session, they are not walking into the unknown. They are prepared.

Joint Session

This preparation matters enormously. One of the most common barriers to successful joint mediation — particularly in Utah, where shuttle mediation has made many people assume direct dialogue is impossible — is anxiety about being in the same room as the other party. Our pre-mediation work directly addresses the fact that anxiety builds confidence and establishes a shared language for the conversation ahead.

The plenary session itself is a facilitated conversation in which both parties are present. Our mediators follow the transformative model strictly: we do not steer toward outcomes, offer legal opinions, or apply pressure. We listen carefully, reflect on what we hear, and support each person in speaking clearly and hearing fully. The result is often surprising — not just an agreement, but a genuine shift in how the parties relate to each other.

Why the Type of Mediation You Choose Matters

Use the following framework to think through your situation:

  • Choose evaluative mediation if your dispute is primarily financial or legal, you have no ongoing relationship with the other party, and you want an experienced neutral to help both sides see what a court would likely decide.
  • Choose facilitative mediation if you want more say in the outcome than evaluative mediation allows, and the relationship between you and the other party, while not warm, does not need to be rebuilt.
  • Choose transformative mediation if the relationship matters — now or in the future — and you want more than a signed agreement. This includes co-parenting disputes, business partnerships, neighborhood conflicts, workplace disagreements, and family matters where people will continue to interact.

The desire to be genuinely heard — not just settled — points toward transformative mediation.

Speak With a Utah Mediator About Your Options

The mediators at Christensen & Jensen are trained and certified in all styles of mediation. We work with co-parents navigating custody, neighbors in entrenched disputes, business partners at an impasse, and families wrestling with inheritances and old wounds. We believe that most people, when given the right support and preparation, are more capable of working through conflict than they have been led to believe.

If you would like to learn more about our process or simply want to talk about whether mediation might be right for your situation, we invite you to reach out.

We are proud to recognize Gabriell Sabalones for leading her BYU Model United Nations students to an extraordinary achievement.

Recently, Gabriell and her students traveled to New York City to compete in a prestigious Model United Nations conference against teams from around the world. Under her leadership, every BYU delegation earned an “Outstanding” rating. This is the Model UN equivalent of a gold medal.

Throughout the competition, Gabriell’s students tackled complex international issues such as economic inequality and sustainable housing for refugees, demonstrating thoughtful diplomacy, collaboration, and problem-solving on a global stage. Their experience concluded with a visit to United Nations Headquarters, making this accomplishment even more memorable.

This achievement reflects Gabriell’s dedication to mentoring future leaders and preparing students to engage with real-world challenges. We are honored to celebrate her success and look forward to all she and her students will continue to accomplish.

An Employee Stock Ownership Plan (an “ESOP”) is a way to reward employees with equity in the company they work for while also providing certain advantages to the company, such as tax deductions. Companies can use this as a retirement benefit or to sell a successful, privately owned business from its individual or family owners to its employees. While an ESOP is technically and legally complex to implement, it offers many advantages that can make it well worth it for business owners, including access to credit and unique tax exemptions. 

Why set up an ESOP? 

Employees benefit from a private company’s employee stock ownership plan because when they leave the company, either mid-career or at retirement, the company must buy back whatever company stock is in that employee’s name for “fair market value.” If the company is publicly traded, the employee can sell their allocated shares on the stock market. The plan grants employees certain voting rights in major decisions the company makes, such as closing or relocating, giving employees more control over their own careers. 

When employees own a portion of a company through stock ownership, it aligns their interests with the company. When the company succeeds, its overall value will increase, and so will the value of the shares held by the employee. ESOPs are structured to gradually increase the amount of stock owned by the employee. This rewards employees for loyalty to the company and for their continued service, knowledge, and expertise. 

Business owners benefit from the company’s ESOP not only from the alignment of employee and company incentives and motivation, but also in tax deductions. 

An ESOP setup can be in addition to other retirement benefits a business can offer to its employees. The Utah State House and Senate recently passed a bill which will create a statewide marketplace for employers to compare retirement benefit plans to offer to their workforce. Employers will soon be able to use this and other tools to help them decide how to reward and incentivize their employees. An ESOP is distinct from other retirement accounts that employees may have, because all contributions are from the employer, i.e. no deduction is made from the employee’s pay. 

How ESOPs Work: Structure, Vesting, and Share Allocation

An employee stock ownership plan is a “defined contribution plan” under federal law, like a 401(k), but invested in only one company. The ESOP can also only receive employer contributions, not employee contributions. Like other private sector retirement plans, ESOPs are governed by federal law, the Employee Retirement Income Security Act of 1974 (commonly known as ERISA). 

ESOPs are set up as trust funds, which hold the company’s shares of stock on behalf of the employees, with each share allocated to individual employee accounts. There is some flexibility on how stocks can be allocated to employees, but it is most often done relative to employee pay and/or seniority. 

Employees gain the right to their shares as the shares in the company “vest” over time. With “cliff vesting,” employees have no right to their shares until they complete three years of service, and then they gain 100% vesting. With “graded vesting,” employee shares vest more gradually over six years: 

Years of Service  Cliff Vesting  Graded Vesting 
1   0%   0% 
 2   0%   20% 
 3   100%   40% 
 4   100%   60% 
 5   100%   80% 
 6   100%   100% 

The company can either contribute new shares to the ESOP’s trust fund or contribute cash with which to buy shares from the owner. The trust fund itself can take out a bank loan and use those funds to buy shares, while gradually paying back the loan over time. This last structure is known as a “leveraged ESOP.” 

Tax Benefits of Employee Stock Ownership Plans

Tax Deductions for the Company

One of the most compelling reasons for a company to establish an ESOP is the significant tax advantages it offers. Contributions made by the company to the ESOP trust are generally tax-deductible, up to certain limits. This includes both cash contributions used to purchase company stock and contributions of newly issued shares, as well as contributions to pay back loans for a leveraged ESOP.

Tax-Deferred Rollovers for Selling Shareholders

ESOPs also provide unique tax benefits for selling shareholders, particularly in privately held companies. When a shareholder sells stock to an ESOP, they can defer capital gains taxes on the sale by reinvesting the proceeds into qualified replacement property (QRP), such as stocks or bonds of other domestic corporations. Section 1042 governs this deferral, allowing sellers to avoid immediate tax liability, provided they follow the rules for reinvestment. 

This feature makes ESOPs an attractive exit strategy for business owners who want to transition ownership to employees while deferring taxes. Selling existing stock to an ESOP trust also provides liquidity to shareholders without the need for an external buyer, which can be particularly valuable for family-owned businesses or closely held corporations.

Tax Advantages for S Corporations

ESOPs can offer even greater tax benefits to companies structured as S corporations. For S corporations, the portion of the company owned by the ESOP is exempt from federal income tax. For example, if an ESOP owns 40% of the shares in an S corporation, the company pays no federal income tax on 40% of its earnings. This exemption can result in significant tax savings, allowing the company to reinvest more of its profits into growth, employee benefits, or debt repayment. 

Implementation Process: Setting Up an ESOP

Feasibility Study and Valuation

Before establishing an ESOP, companies should conduct a feasibility study to determine whether an ESOP is the right fit for their business goals and financial situation. This study typically includes: 

  • Financial Analysis: Assessing the company’s cash flow, profitability, and ability to fund ESOP contributions. 
  • Valuation: Determining the fair market value of the company’s stock, which is required for ESOP transactions and compliance with ERISA. 
  • Legal and Tax Review: Ensuring compliance with federal and state laws, including ERISA, securities laws, and tax regulations. 

The external valuation of the business is critical, as the ESOP trust must pay no more than fair market value for the company’s stock. Overvaluing stock can lead to legal and financial risks, which may include IRS penalties or lawsuits from employees.

Structuring the ESOP

Once a feasibility study is complete, a company will work with its legal and financial advisors to design the plan. Key decisions include: 

  • Funding Mechanism: Will the ESOP be funded through company contributions, leveraged (where the ESOP borrows money to purchase shares), or perhaps a combination of both? 
  • Allocation Formula: How will shares be allocated to employees? Common methods include basing allocations on compensation, years of service, or a combination of both. 
  • Vesting Schedule: Will the company use standard cliff vesting or graded vesting, or a custom schedule that is more generous to employees? 
  • Repurchase Obligation: How will the company handle the repurchase of shares when employees leave or retire? Companies must plan for the liquidity needed to buy back shares at fair market value. However, for departing employees, shares can be distributed over certain periods of time, and for early-retiring employees, distribution of shares can be delayed until the employee reaches retirement age.

Legal and Regulatory Compliance

ESOPs are subject to strict legal and regulatory requirements under ERISA, the Internal Revenue Code, and federal and state securities laws. Companies must: 

  • File Plan Documents: Draft and file ESOP plan documents with the IRS and the Department of Labor (DOL). 
  • Appoint a Trustee: The ESOP trust must be managed by a trustee, who has a fiduciary duty to act in the best interests of plan participants. 
  • Conduct Annual Valuations: The company’s stock must be valued every year to ensure compliance with ERISA and tax laws. 
  • Provide Disclosures: Employees must receive regular statements about their ESOP accounts, including the value of their shares and vesting status. 

Failure to comply with these requirements can result in penalties, lawsuits, or even the disqualification of the ESOP’s tax benefits, so it is very important for businesses to plan for ongoing compliance. 

Is an ESOP Right for Your Business?

An ESOP provides business owners a flexible exit strategy, realize significant tax exemptions, and foster a powerful “ownership culture” among employees that drives productivity and retention. 

While ESOPs have technical and regulatory requirements and costs, such as legal compliance and annual valuations, the long-term rewards often outweigh the initial complexity. For the business, it is a tool for liquidity and growth; for the employees, it is a path toward meaningful wealth accumulation without personal payroll deductions. Ultimately, an ESOP aligns the success of the individual with the success of the enterprise, ensuring that as the company prospers, so do the people who build it. 

If you are considering an ESOP or exploring succession planning options, the experienced attorneys at Christensen & Jensen can help you evaluate whether an ESOP aligns with your business goals. Contact our team today to discuss your options and develop a strategy tailored to your company’s future.