By Miki Mullor, Hideout Comment | October 28, 2025

HIDEOUT, Utah — The Town of Hideout faces a hefty new legal bill after losing a four-year court battle with Mustang Development LLC, one that could cost the town more than it spends on all legal services in an average year.

Mustang filed a motion this month asking a Wasatch County judge to order the town to pay $352,975 in legal fees and costs. The request follows an Oct. 3 ruling that declared the developer the prevailing party in its dispute with the town over development rights under a 2019 master development agreement.

If approved, the payment would exceed more than two and a half times Hideout’s entire 2024 legal budget of about $137,000, according to town financial records. It would also rival the combined annual cost of the town’s engineering and police contracts. That figure does not include the hundreds of thousands of dollars Hideout has already spent on its own lawyers during the case.

How the Dispute Began

Mustang filed its original lawsuit in May 2021, claiming Hideout and its planning consultants interfered with its right to build about 1,975 housing units. The developer alleged that the town’s actions — including zoning changes and delayed approvals — reduced property values and potential revenues by more than $100 million.

The case quickly expanded into a prolonged fight over interpretation of the master development agreement. What followed were years of filings, mediations and summary judgment motions that left Hideout defending its land-use authority while facing growing financial exposure.

Early Mediation and Missed Opportunities

Within weeks of filing suit, both sides began discussing mediation. On July 20, 2021, attorneys for Mustang, Hideout and planning consultant Thomas Eddington met in Salt Lake City with mediator G. Crane. Records show the meeting lasted most of the day. No agreement was reached, but correspondence afterward suggested the parties remained open to negotiation.

Talks resumed in late 2021. Emails from December 2021 and January 2022 described renewed interest in mediation and a possible global resolution. Attorneys also discussed whether the mayor had authority to enter into a binding settlement — a sign of serious negotiations.

A second formal mediation was held June 21, 2022, again in Salt Lake City. Mustang’s attorney drafted a proposed agreement granting density immediately afterward, indicating progress. But within days, correspondence revealed the deal had fallen apart.

Phone logs show further calls through August and September 2022, when the town and other defendants again sought mediation. None of those efforts succeeded, and by year’s end the case shifted fully into litigation.

From Negotiation to Courtroom

In January 2023, Mustang filed a second amended complaint expanding its claims and reaffirming its right to recover attorney fees under the agreement. By February 2024, both sides were asking the court to rule without a trial. Mustang filed its motion for summary judgment on Feb. 4, and the town submitted a cross-motion three weeks later.

The court held a hearing Aug. 26, 2025. A little over a month later, Judge Jennifer Mabey issued her order finding that Mustang prevailed on key issues and was entitled to recover its legal fees.

The company’s Oct. 22, 2025, motion formally requests $352,975, which includes attorney fees, litigation costs and interest. Mustang’s attorneys said in the filing that the town “created the situation that necessitated the lawsuit” and that the fee request was reasonable under Utah law.

The Cost Compared to the Town’s Finances

The $352,000 request looms large against Hideout’s finances. The town’s 2024 general fund totaled about $1.8 million, with only $137,000 budgeted for legal expenses and $597,000 for all professional services combined, according to public records.

If granted, Mustang’s award would equal roughly two and a half times the town’s legal budget and nearly 20 percent of its professional services spending for the year.

The figure also does not include Hideout’s own legal defense costs, which have spanned multiple law firms since 2021. Combined, the total legal burden from the Mustang case could exceed half a million dollars — a heavy expense for a community of fewer than 1,000 residents.

Could It Have Been Avoided?

Whether those costs were avoidable is now a central question. The record shows the town participated in at least two formal mediations and several informal settlement discussions before the case entered its most expensive phase. Had a deal been reached in 2021 or 2022, Hideout might have avoided years of filings, discovery and the summary judgment that ultimately sealed its loss.

Town leaders have argued they had a duty to defend their zoning authority and ensure that the development agreement was applied correctly. The court’s ruling did not find the town acted in bad faith, only that Mustang’s contract entitled it to recover fees as the prevailing party.

What Happens Next

Judge Mabey will determine whether the amount requested is reasonable under Utah’s Rule 73, which governs post-judgment fee awards. The court could approve the full sum, reduce it or hold a separate hearing. Mustang has asked that payment be made within 14 days of any order.

For Hideout, the decision could become one of the costliest in its short municipal history — and a reminder that in small-town politics, the price of persistence can sometimes rival the cost of compromise.