Utah Supreme Court Adopts Limited Fiduciary Duty for Developers

SALT LAKE CITY - The Utah Supreme Court has adopted a rule imposing a limited fiduciary duty on residential developers that includes a duty "to disclose all material facts and circumstances affecting the financial condition of the property." Davencourt at Pilgrims Landing Homeowners Association v. Davencourt at Pilgrims Landing LC, et al., No. 20070914 (Utah Sup. Ct.).

The high court said in partially reversing a decision for developers that homeowners' claims based on duties the townhouse developer assumed prior to the establishment of an independent owners' association fell outside the economic loss rule.

The Davencourt at Pilgrims Landing Homeowners …