SALT LAKE CITY — The Utah Court of Appeals is considering whether to revive a civil lawsuit filed against pro golfer Tony Finau and members of his family.
In arguments Tuesday, a three-judge panel questioned whether it was too late for early backers of Finau and his brother, Gipper, to recoup any money they claim they were promised.
David Hunter sued the Finaus, alleging that he and others had invested in the golfers as they sought to turn professional and a company was created by the Finau family with the promise of a stake in their future earnings. The Finau Company ultimately dissolved in 2009 before the brothers hit it big in pro-golfing. Tony Finau is now a world-recognized athlete. Lawsuits accused them of dissolving the company to avoid paying back money they owed to their benefactors.
A judge in Provo's 4th District Court dismissed Hunter's lawsuit in 2021, ruling that investors were past a statute of limitations to sue for breach of contract and the dispute was with the company itself. Hunter appealed to the Utah Court of Appeals. In arguments, Hunter's attorney acknowledged the original contracts had ambiguous terms.
"Why isn't it the case that upon dissolution of the corporation, the operating agreement for the corporation wouldn't necessarily vaporize?" asked Judge Terry Orme.
"We don't have those terms, but typically they include wind-up provisions and an allocation of assets and where they would go forward," Leah Aston, Hunter's attorney, replied. "You have to also give effect to the term 'any future revenue.' What is this term? Future revenue can’t refer to future revenue of the Finau Corporation because it comes right after a contemplation that the Finau Corporation has been dissolved. Future revenue in this case... has to refer to future revenue of these golfers."
Aston disagreed with the idea that the contractual disputes are with the Finau Corporation and not the brothers. Judge Ryan Tenney questioned why investors didn't pursue their money in 2009 when the Finau Company dissolved. Aston argued that there was still a claim for a stake in the future earnings of the golfers.
The judge also questioned claims that there was an effort to conceal any earnings when one just needs to turn on the Golf Channel.
"In what universe of facts could we say Tony Finau is concealing the income he was making from tour winnings when those tour winnings are all publicly known? How could we even say that?" Judge Tenney asked.
"We're not just talking about tour winnings, we are talking about Nike endorsements, we are talking about multi-million dollar endorsements, some of which became public and some of which did not. But Mr. Finau back in 2007 was unknown and that gradually increased over time," Aston replied.
Stewart Peay, the attorney for the Finau family, argued that it was too late to pursue this because the six-year statute of limitations began tolling back when the company dissolved.
"They could have brought the claim in ‘09," he told the judges. "They chose not to."
The judges took the case under advisement with no timeline for a ruling.
