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Kirton McConkie v. ASC Utah, 2016 UT App 200 (Sep. 22, 2016)

Sep 22, 2016

This suit involved a dispute over an assignment of the right to receive rental payments. Wolf Mountain, as payment for attorney fees, had assigned its rights to receive rent from a property in Summit County to Kirton McConkie. The property was being leased by ASC Utah. In a separate suit, ASC Utah obtained a $60 million judgment against Wolf Mountain, which ASC Utah then used to set off its rent payments under the lease. The Court of Appeals held that even though Kirton McConkie’s interest was assigned prior to the setoff, the assignment did not sever the right to receive rent from the other obligations under the lease, so Kirton McConkie’s assignment was subject to ASC Utah’s right to set off the rent.