KB Squared v. Memorial Building , 442 P.3d 1168 ( 2019 )


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    2019 UT App 61
    THE UTAH COURT OF APPEALS
    KB SQUARED LLC,
    Appellant,
    v.
    MEMORIAL BUILDING LLC,
    Appellee.
    Opinion
    No. 20170807-CA
    Filed April 18, 2019
    Third District Court, Salt Lake Department
    The Honorable Barry G. Lawrence
    No. 130905407
    James L. Barnett, Darren G. Reid, and Steven M. Lau,
    Attorneys for Appellant
    James K. Tracy, Joshua L. Lee, and James C.
    Dunkelberger, Attorneys for Appellee
    JUDGE KATE APPLEBY authored this Opinion, in which
    JUDGES GREGORY K. ORME and DIANA HAGEN concurred.
    APPLEBY, Judge:
    ¶1     KB Squared LLC dba Park City Live (PCL), entered into a
    lease agreement (the Lease) with Memorial Building LLC
    (Memorial) to operate a nightclub (the Club) including
    presenting concerts in a building owned by Memorial in Park
    City, Utah. PCL used an upper-level “bridge” (the Bridge) for
    high capacity premium concert seating. Out of occupancy and
    safety concerns Park City ordered PCL to stop using the Bridge
    in that way. PCL sued Memorial for a breach of the Lease,
    arguing that its inability to use the Bridge was caused by
    Memorial’s failure to repair it. After a bench trial, the district
    court ruled Memorial did not breach the Lease. We affirm.
    KB Squared v. Memorial Bldg.
    BACKGROUND
    ¶2      In December 2011, Memorial entered into the Lease with
    PCL to occupy the Club “for the purpose of [operating a]
    nightclub, entertainment, and other event use.” Before PCL
    occupied the Club, a prior tenant (Prior Tenant) operated in the
    space. In 2005, Prior Tenant had the Bridge built inside the Club.
    The Bridge was intended to connect “the right and left side
    mezzanine levels of [the Club].” Engineers prepared
    construction drawings that “reflect[ed] that the Bridge was
    approximately 42 feet wide and would accommodate a seating
    area” that could hold “21 people total.” The plans showed a
    standing area behind the seating area, which, the experts at trial
    calculated, could “accommodate an additional 38 people, for a
    total occupancy of 59 on the Bridge.” “The plans also contained
    an express occupancy limit of 50 for the Bridge addition for
    egress purposes.” Based on the testimony presented at trial the
    district court ruled that “it was reasonable, based upon the
    intended use of the Bridge, that it was designed to hold between
    50 and 60 people for the stated and intended use—i.e., fixed
    seating and standing for a restaurant or nightclub.”
    ¶3    The district court found the testimony regarding Prior
    Tenant’s use of the Bridge after it was constructed “somewhat
    unspecific about the precise number of people that [Prior
    Tenant] housed on the Bridge.” But the court concluded “[Prior
    Tenant] used the Bridge in a manner that appears to have
    exceeded the stated limit set forth in the plans.” At one point,
    Prior Tenant also used the Bridge “to accommodate [concert]
    equipment.”
    ¶4     The Lease did not contain “any representation or
    guaranty concerning the occupancy of the [Club], or any part
    thereof” nor “any representation or guaranty concerning the
    manner of use of any particular part of the [Club].” But the Lease
    generally provided that the Club as a whole was to be used as a
    nightclub. Prior to entering into the Lease, PCL did not
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    investigate the purpose for which the Bridge was designed. PCL
    intended to use the Bridge for “premium event seating” in the
    same way it believed Prior Tenant used it.
    ¶5      In January 2013, Park City officials “observed 85 to
    100 people . . . dancing and jumping” on the Bridge and
    observed “excessive deflection of the floor.” Because of this, the
    officials requested that PCL “limit[] the occupancy of the Bridge
    to 35.” “They came back the following night and again observed
    80–85 people on the Bridge.” After PCL failed to follow the
    officials’ directives, the officials “believed PCL could not control
    the occupancy load, [and] issued [a] ‘Stop Work’ 1 order
    prohibiting any occupancy on the Bridge until otherwise
    approved.”
    ¶6     PCL contacted the engineers involved in the construction
    of the Bridge and had them inspect it. The engineers concluded
    the Bridge was structurally sound. Their report stated that “[t]he
    original intent of [the Bridge] was to serve as an access platform
    to mount lighting and sound equipment. In the construction
    documents, the drawings indicate a value of 50 persons
    (attributed to [the Bridge] area) used to calculate the means of
    egress width.” The report also noted, “Recently, it has become
    apparent that the usage of [the Bridge] (under new ownership)
    has been changed to an assembly area without fixed seats.” The
    engineers recommended that              to   “prevent    excessive
    deflection/vibration of [the Bridge] under the new usage, . . . the
    maximum occupant load of [the Bridge should be reduced] to 25
    persons.” But the engineers also believed “the structural
    integrity of [the Bridge] system [was] not compromised” and
    was still fit for its intended purpose.
    1. Although no work was under way on the Bridge, in a
    deposition, one of the officials described a “stop work” order as
    “basically a . . . do-not-enter, unsafe-to-occupy notice.”
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    ¶7     PCL asked Memorial to “restore the seating area to its
    former and promised use as premium event seating as required
    by the Lease.” Memorial refused, noting that the city officials’
    directives resulted from PCL’s misuse of the Bridge, not from its
    condition, and that the Bridge was structurally sound and
    undamaged.
    ¶8    PCL sued Memorial, alleging that it breached the Lease.
    The claims arose “out of [an] alleged representation that
    Memorial made in the Lease” that the Bridge was intended to be
    used as premium event seating. PCL asserted Memorial
    breached the Lease by failing “to make the structural repairs
    necessary to enable PCL to use [the Bridge] accordingly.”
    ¶9     After a bench trial, the district court dismissed PCL’s
    claim. It first noted that “PCL [did] not argue that the
    representation included a specific number of seats, or a specific
    occupancy number. Instead, it [asked] the Court to conclude that
    50 would be a ‘reasonable’ occupancy number.” “[I]t is
    undisputed that the Lease did not contain any express promise
    concerning the number of permissible occupants on the Bridge,
    or any specific use of the Bridge.”
    ¶10 At trial, the principal of PCL (PCL Principal) testified that
    Memorial made no oral representations or guarantees to PCL
    regarding how the Bridge was to be used. PCL Principal
    “believed there was an implicit promise that [PCL] would be
    able to use the Bridge for nightclub [premium event] seating,
    which, according to [PCL’s] understanding of nightclub industry
    usage, connotes dancing and jumping.” PCL argued Prior
    Tenant’s use of the Bridge should allow PCL to similarly use it
    because Memorial’s Principal (Memorial Principal) was involved
    in the business when Prior Tenant was using the Bridge and was
    aware of PCL’s intent to use the Bridge in the same manner.
    ¶11 In PCL’s view, the notation “seating area” on the diagram
    of the Bridge attached to the Lease constituted an implicit
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    representation. PCL “argue[d] that because the purpose of the
    Lease was for [it] to operate a ‘nightclub,’ that ‘seating area’
    actually meant ‘premium event seating’ which, in the context of
    a nightclub, essentially means jumping and dancing.”
    ¶12 The court found that PCL’s “claim [was] at least
    ‘tenable’ . . . [so it] could not interpret the Lease on its face, and
    had to resort to extrinsic evidence.” Accordingly, the court
    considered the diagram and its reference to “seating area” on the
    Bridge. The court heard testimony about the diagram and
    ultimately found that it depicted square footage and was not
    “intend[ed] to represent or guarantee” an occupancy limit on the
    Bridge. The court also considered the parties’ testimony and
    found that it was “a stretch—to say the least—that the use of the
    word ‘seating’ (taken from a construction document) was
    understood by everyone to mean a guarantee that the area could
    be used for dancing and jumping.” The court ruled “the facts
    simply do not preponderate in PCL’s favor on . . . its assertions
    regarding the language of the Lease.”
    ¶13 Specifically, the court noted it was unreasonable for PCL
    Principal to believe PCL was guaranteed a specific use for the
    Bridge because, (1) PCL’s belief was “based on a strained
    interpretation of the Lease, and an improper attribution to the
    attached square footage diagram”; (2) PCL Principal’s
    “understanding of [Prior Tenant’s] prior use of the Bridge is not
    legally relevant”; (3) PCL Principal’s “subjective understanding
    is belied by the lack of any representation from [Memorial
    Principal]”; (4) “there are provisions in the Lease noting that any
    prior representations or any representation—if they had been
    made—could not form the basis of an enforceable promise”; and
    (5) “nothing in the Lease, or the extrinsic evidence relating
    thereto, defines ‘seating’ in the manner [PCL Principal]
    apparently understood it.”
    ¶14 The district court ruled that “because PCL is able to use
    [the Bridge] for the furtherance of its nightclub operation, and
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    because there [was] no representation or guarantee of a specific
    use or occupancy, there is no breach of the terms of the Lease.”
    The court also noted that by misusing the Bridge, PCL caused its
    own loss. The evidence showed the Bridge was in the same
    condition as when the Lease was signed and it appeared PCL
    was requesting that Memorial “upgrade [the Bridge], not repair
    it.” Further, “the reason [the Bridge] cannot be used” in the way
    PCL requested was “based on the fact that Park City” closed it.
    The closure “was not based on anything Memorial did in
    violation of its obligations under the Lease.”
    ¶15 The court also awarded Memorial attorney fees under the
    terms of the Lease, which stated that for any “dispute regarding
    the terms of the Lease” the “non-prevailing party agrees to
    reimburse the prevailing party for all expenses and costs,
    including reasonable attorney fees incurred.” The court noted
    that the fee award “[would] not include the fees and costs
    incurred by Memorial that did not materially advance its case.”
    It invited Memorial to file a motion and supporting
    memorandum detailing its request for attorney fees and costs
    and gave PCL an opportunity to respond. Ultimately the court
    awarded Memorial approximately half of its total requested fees.
    ¶16 PCL appeals, arguing that the court was incorrect in
    interpreting the Lease and also erred in awarding Memorial
    attorney fees when Memorial failed to “categorize fees as
    mandated by Utah law.”
    ISSUES AND STANDARDS OF REVIEW
    ¶17 PCL raises two issues on appeal, the first of which relates
    to the Lease. PCL argues the district court erred in finding the
    Lease ambiguous. Further, it contends the court erred in failing
    to consider all relevant extrinsic evidence to determine the
    parties’ intent under the Lease and in interpreting the Lease to
    find PCL was not guaranteed a specific occupancy and use of the
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    KB Squared v. Memorial Bldg.
    Bridge. “The interpretation of a contract is a question of law,
    which we review for correctness, giving no deference to the
    ruling of the district court.” Salt Lake City Corp. v. Big Ditch
    Irrigation Co., 
    2011 UT 33
    , ¶ 19, 
    258 P.3d 539
    . “Likewise, the
    determination of whether a contract is facially ambiguous is a
    question of law, which we review for correctness.” McNeil Eng’g
    & Land Surveying, LLC v. Bennett, 
    2011 UT App 423
    , ¶ 7, 
    268 P.3d 854
    . And we “resolve questions of facial ambiguity in a contract
    according to the parties’ intent, which is a question of fact.” 
    Id.
    “If the contract is ambiguous and the [district] court makes
    findings regarding the intent of the parties, we will not disturb
    those findings unless they are clearly erroneous.” Allstate Enters.,
    Inc. v. Heriford, 
    772 P.2d 466
    , 468 (Utah Ct. App. 1989).
    ¶18 The second issue relates to attorney fees. PCL first argues
    the district court erred in awarding Memorial fees when
    Memorial failed to categorize its fees as required by Utah law. It
    also argues the court abused its discretion in awarding Memorial
    “unreasonable” fees. “Whether the district court applied the
    correct legal standard is a question of law, which we review for
    correctness.” Bad Ass Coffee Co. v. Royal Aloha Int’l, LLC, 
    2015 UT App 303
    , ¶ 6, 
    365 P.3d 161
    . “Assuming that the district court has
    applied the correct legal standard,” 
    id.,
     “the standard of review
    on appeal of a [district] court’s award of attorney fees is patent
    error or clear abuse of discretion,” Valcarce v. Fitzgerald, 
    961 P.2d 305
    , 316 (Utah 1998) (quotation simplified).
    ANALYSIS
    I. The Lease Agreement
    ¶19 PCL argues the district court erred in concluding the
    Lease was ambiguous regarding the Bridge’s intended purpose
    because the Lease “expressly represents that the Bridge is to be
    used as nightclub seating.” PCL also contends the court erred in
    considering extrinsic evidence and made a clearly erroneous
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    finding that the term “seating area” described on the Lease
    attachment did not include “dancing and jumping” for a certain
    occupancy of patrons.
    ¶20 When interpreting contracts, courts first look to
    the “writing itself to ascertain the parties’ intentions,
    and . . . consider each contract provision in relation to all of
    the others, with a view toward giving effect to all and ignoring
    none.” WebBank v. American Gen. Annuity Service Corp., 
    2002 UT 88
    , ¶ 18, 
    54 P.3d 1139
     (quotation simplified). “If the language
    within the four corners of the contract is unambiguous,
    the parties’ intentions are determined from the plain meaning
    of the contractual language, and the contract may be
    interpreted as a matter of law.” 
    Id. ¶ 19
     (quotation
    simplified). But “if the language of the contract is ambiguous
    such that the intentions of the parties cannot be determined by
    the plain language of the agreement, extrinsic evidence must be
    looked to in order to determine the intentions of the parties.” 
    Id.
    (quotation simplified). If the contract is ambiguous, “[w]e review
    the [district] court’s construction based on extrinsic evidence
    under the more deferential clearly-erroneous standard.” West
    Valley City v. Majestic Inv. Co., 
    818 P.2d 1311
    , 1313 (Utah Ct. App.
    1991).
    ¶21 PCL contends the Lease unambiguously represents the
    Bridge as a nightclub seating area. The text of the Lease contains
    no mention of the Bridge or representations regarding its use.
    Instead, PCL relies on the diagram attached to the Lease, which
    depicts the floor plan and shows bench seating along the Bridge
    with the notation “seating area.” PCL contends that this notation
    was a guarantee that the Bridge could be used for premium
    event seating, including dancing and jumping, for 50 to 80
    nightclub patrons. Although the district court found this
    argument to be “tenable,” no such guarantee is evident from the
    face of the Lease. We agree the Lease is ambiguous and that the
    district court properly considered extrinsic evidence to interpret
    its terms.
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    KB Squared v. Memorial Bldg.
    ¶22 “A party challenging the [district] court’s interpretation of
    ambiguous terms of a contract faces a substantial appellate
    burden.” 
    Id.
     We will “affirm the [district] court’s findings if they
    are based on sufficient evidence, viewing the evidence in the
    light most favorable to the court’s construction.” 
    Id.
     In this case,
    the district court properly considered the extrinsic evidence.
    First it looked to the diagram attached to the Lease, which
    included the term “seating area” in reference to the Bridge. The
    court found the “evidence was clear” that this diagram “was
    taken from a prior construction document only for the purpose of
    identifying the square footage of [the Club].” The court based this
    finding on the reference to the diagram in the Lease itself, the
    square footage calculation on the diagram, the underlying
    correspondence regarding the diagram, and Memorial
    Principal’s testimony regarding why the parties included the
    diagram as an attachment to the Lease. Based on the evidence
    presented, the court found “that Memorial did not, by attaching
    that document, intend to represent or guarantee that that area
    could be used up to a certain occupancy or for a specific
    purpose.”
    ¶23 The district court also found that Memorial did not tell
    PCL Principal during lease negotiations that PCL could use the
    Bridge as premium event seating to allow scores of people to
    jump and dance during concerts. “If [PCL Principal] relied upon
    such a representation she was doing so based upon her
    subjective understanding, which is insufficient . . . to support her
    claim.” The court said it could not “accept a representation that
    is simply not made in, or supported by, the Lease or any of the
    circumstances surrounding its execution” and concluded it was
    a “leap of logic . . . that ‘seating’ really means nightclub dancing,”
    which includes dancing and jumping, and therefore this
    assertion was “entirely unsupported and unreasonable.”
    ¶24 The evidence in the record supports the district court’s
    findings. See Bonnie & Hyde, Inc. v. Lynch, 
    2013 UT App 153
    , ¶ 17,
    
    305 P.3d 196
     (“A [district] court’s factual findings are clearly
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    KB Squared v. Memorial Bldg.
    erroneous only if they are in conflict with the clear weight of the
    evidence, or if this court has a definite and firm conviction that a
    mistake has been made.” (quotation simplified)). PCL points to
    several pieces of evidence it argues the court should have
    weighed more heavily, but this court does not reweigh evidence
    presented at trial. See In re B.R., 
    2007 UT 82
    , ¶ 12, 
    171 P.3d 435
    (“When a foundation for the court’s decision exists in the
    evidence, an appellate court may not engage in a reweighing of
    the evidence.”).
    ¶25 In any event, even if we assume “seating” includes
    “dancing and jumping,” PCL’s claim still fails because the Lease
    does not guarantee high occupancy for the Bridge and therefore
    Memorial did not breach it. “Whether a party performed under a
    contract or breached a contract is a question of fact.” Syme v.
    Symphony Group LLC, 
    2018 UT App 212
    , ¶ 23 (quotation
    simplified). “A party challenging a district court’s factual
    findings on appeal bears a heavy burden of persuasion.” Dahl v.
    Dahl, 
    2015 UT 79
    , ¶ 149. “Parties challenging factual findings
    cannot persuasively carry their burden in this respect by simply
    listing or rehashing the evidence and arguments they presented
    during trial or by merely pointing to evidence that might have
    supported findings more favorable to them.” Shuman v. Shuman,
    
    2017 UT App 192
    , ¶ 8, 
    406 P.3d 258
     (quotation simplified).
    ¶26 The district court noted that “if PCL wanted Memorial to
    guarantee a specific number of people in a certain area they
    could have done so, and should have demanded so in the
    Lease.” PCL argues this information would not appear on a lease
    agreement because occupancy issues are usually decided by city
    zoning and enforcement officials. But that is precisely what
    happened here. The city officials saw 85 to 100 individuals
    dancing on the Bridge and told PCL to limit the number to 35.
    ¶27 The court also relied on several clauses in the Lease to
    support its conclusion that Memorial did not breach it. First, the
    Lease provided that PCL was “taking the property ‘as is’ and
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    [acknowledged] . . . that there [had] been a right to an
    opportunity to inspect the property.” Second, the Lease’s general
    purpose was to operate a “nightclub, entertainment, and other
    event use,” not to guarantee PCL a specific occupancy of the
    Bridge. Finally the Lease contained a provision that stated, “This
    Lease contains all of the agreements of the parties hereto with
    respect to matters covered or mentioned in this Lease and no
    prior agreement, letters, representations, warranties, promises,
    or understandings pertaining to any such matters shall be
    effective for any such purpose.” Based on these clauses and
    other evidence presented at trial, the court determined that PCL
    was not guaranteed a specific occupancy or use of the Bridge
    and Memorial had not breached any provision of the Lease. The
    court also noted that the engineers found no structural flaws in
    the Bridge and that PCL is still able to use it. Significantly, “the
    evidence was undisputed that the condition of the Bridge is in
    the same condition it was when the Lease was signed.”
    ¶28 The court concluded “because PCL is able to use the
    bridge for furtherance of its nightclub operation, and because
    there is no representation or guarantee of a specific use or
    occupancy, there is no breach of the terms of the Lease.” This
    finding was not clearly erroneous and therefore Memorial did
    not breach the Lease. 2
    ¶29 We conclude the district court correctly ruled the Lease
    was ambiguous and that the term “seating area” did not
    expressly include “dancing and jumping.” Further, the court did
    not clearly err in interpreting the extrinsic evidence to conclude
    the Lease was not intended to guarantee “dancing and
    2. Because Memorial did not breach the Lease, PCL is not
    entitled to damages. See Christensen & Jensen, PC v. Barrett
    & Daines, 
    2008 UT 64
    , ¶ 26, 
    194 P.3d 931
     (stating that “in a breach
    of contract action, the non-breaching party is required to show
    that the breach proximately caused the damages sought”).
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    jumping.” Finally, the court did not clearly err in its
    determination that Memorial did not breach the Lease by failing
    to repair the Bridge because the Lease did not guarantee any
    particular occupancy on the Bridge and PCL is currently able to
    use the Bridge to advance the general purpose of operating a
    nightclub.
    II. Attorney Fees
    ¶30 PCL argues the district court erred when it awarded
    Memorial attorney fees because Memorial’s fees should have
    been categorized consistent with Utah law. It also argues the
    court erred in “failing to address unreasonable fees requested by
    Memorial.”
    ¶31 “In Utah, attorney fees are awardable only if authorized
    by statute or by contract. If provided for by contract, the award
    of attorney fees is allowed only in accordance with the terms of
    the contract.” Dixie State Bank v. Bracken, 
    764 P.2d 985
    , 988 (Utah
    1988) (quotation simplified). The requested fees must also be
    reasonable and “[a] party who requests an award of attorney
    fees has the burden of presenting evidence sufficient to support
    an award.” Cottonwood Mall Co. v. Sine, 
    830 P.2d 266
    , 268 (Utah
    1992). The evidence introduced regarding the reasonableness of
    the attorney fees should address several factors such as,
    the difficulty of the litigation, the efficiency of the
    attorneys in presenting the case, the reasonableness
    of the number of hours spent on the case, the fee
    customarily charged in the locality for similar
    services, the amount involved in the case and the
    result attained, and the expertise and experience of
    the attorneys involved.
    Dixie State, 764 P.2d at 989 (quotation simplified). The court must
    then “make an independent evaluation of the reasonableness of
    the requested fees in light of the parties’ evidentiary
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    submissions.” Crane-Jenkins v. Mikarose, LLC, 
    2016 UT App 71
    ,
    ¶ 5, 
    371 P.3d 49
     (quotation simplified). “An award of attorney
    fees must be based on the evidence and supported by findings of
    fact.” Cottonwood Mall, 830 P.2d at 268.
    ¶32 In this case, the Lease stated, “In the event of any . . .
    dispute regarding [the Lease’s] terms and conditions or
    enforcement, the non-prevailing party agrees to reimburse the
    prevailing party for all expenses and costs, including reasonable
    attorney’s fees incurred in enforcing the terms hereof.”
    ¶33 PCL argues Memorial should have been required to
    categorize its fees. PCL cites this court’s decision in Crane-Jenkins
    to support its position. Crane-Jenkins requires a party seeking
    attorney fees to categorize the time and fees expended for “(1)
    successful claims for which there may be an entitlement to
    attorney fees, (2) unsuccessful claims for which there would
    have been an entitlement to attorney fees had the claims been
    successful, and (3) claims for which there is no entitlement to
    attorney fees.” 
    2016 UT App 71
    , ¶ 21 (quotation simplified).
    Here, Memorial was awarded fees under a broad Lease
    provision that allows it to recover any reasonably incurred
    attorney fees in a dispute related to the terms and conditions of
    the Lease. Memorial argues that it need not allocate its fees
    because each of its defenses and counterclaims related to
    whether it had to repair the Bridge under the Lease.
    ¶34 We agree with Memorial that when a dispute involves
    “multiple claims involving a common core of facts and related
    legal theories, and [a party] prevails on at least some of its
    claims, it is entitled to compensation for all attorney fees
    reasonably incurred in the litigation.” Golden Meadows Props., LC
    v. Strand, 
    2010 UT App 257
    , ¶ 35, 
    241 P.3d 375
     (quotation
    simplified). Because all of Memorial’s defenses and
    counterclaims related to the same issue of whether it was
    required to “repair” the Bridge under the Lease, we conclude it
    was not obligated to separately categorize its fees.
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    ¶35 With respect to the reasonableness of the fees, the district
    court considered the difficulty of the litigation, the fee
    customarily charged in the locality for similar services,
    the amount involved in the case and the result attained, and
    the expertise and experience of the attorneys involved. It
    found these factors were not disputed and that they
    “preponderate[d] in favor of Memorial’s request.” The
    court separately, and in detail, discussed the remaining factors of
    reasonableness in terms of the number of hours spent on the
    case and the efficiency of the attorneys presenting the case
    and concluded that “a reasonable amount for Memorial’s
    reasonable and necessary attorney fees and costs incurred in this
    matter, for which [PCL] should be responsible . . . [totals]
    $147,714.” The court noted, “This amount represents a reasonable
    approximation of fees and costs.” The court relied on Alexander v.
    Brown, which affirmed a district court’s award of attorney fees
    where the district court chose the middle ground between two
    estimates, a compromise between the amounts suggested by
    counsel for each side of what were reasonable fees. 
    646 P.2d 692
    ,
    695 (Utah 1982).
    ¶36 The court also specifically excluded certain fees it found
    unreasonable, which included “all costs and fees incurred in
    filing [Memorial’s] failed dispositive motions,” the “costs
    associated with [two of] Memorial’s experts” because the court
    “found their testimony to be unhelpful,” and “the costs
    associated with [Memorial’s] defense of [PCL’s] damage theory”
    because the court found in favor of Memorial and did not award
    PCL damages. And, as previously noted, the court ultimately
    awarded Memorial considerably less than the amount it
    requested. We conclude the district court did not abuse its
    discretion in awarding Memorial its reasonable attorney fees. 3
    3. We also note that PCL has not identified a specific fee entry
    that was improperly awarded by the district court.
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    ¶37 Finally, both parties request attorney fees incurred on
    appeal. “A party entitled by contract or statute to attorney fees
    below and that prevails on appeal is entitled to fees reasonably
    incurred on appeal.” Federated Capital Corp. v. Abraham, 
    2018 UT App 117
    , ¶ 15, 
    428 P.3d 21
     (quotation simplified). The district
    court awarded Memorial attorney fees below pursuant to the
    Lease. Because Memorial has prevailed on appeal, we award it
    reasonable attorney fees incurred on appeal.
    CONCLUSION
    ¶38 The district court did not err in determining that the
    Lease’s use of the phrase “seating area” did not include
    “dancing and jumping.” Neither did it err in finding Memorial
    did not breach the Lease. Finally, the court did not abuse its
    discretion in awarding Memorial its reasonably incurred
    attorney fees, and we therefore award Memorial its fees
    reasonably incurred on appeal. We remand for the limited
    purpose of determining reasonable attorney fees incurred by
    Memorial in connection with defending the court’s ruling on
    appeal.
    20170807-CA                   15                 
    2019 UT App 61