Articles Posted in Civil Procedure

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Appellants Ronald and Margaret Swafford challenged a district court’s grant of summary judgment in favor of Respondent Huntsman Springs, Inc. The action stemmed from the Swaffords’ claim that Huntsman Springs failed to comply with the Master Plan by essentially cutting off their property from the development. The district court granted summary judgment in favor of Huntsman Springs after concluding that all of the Swaffords’ claims were barred by the applicable statutes of limitations. It was uncontested that the improvements were completed in 2008. Without ruling upon whether Huntsman Springs misrepresented the development of the property at issue, the Idaho Supreme Court determined if Huntsman Springs misrepresented the development of the Property, the Swaffords could have discovered the misrepresentation when the improvements were completed in 2008. The Swaffords did not bring their misrepresentation action until July 17, 2015, which was nearly four years after the deadline. Finding no genuine issues of fact with respect to the time at which the Swaffords' causes of action accrued, the Supreme Court affirmed the district court's judgment. View "Swafford v. Huntsman Springs Inc" on Justia Law

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Jane Doe and John Doe (2017-19) (“Mother,” “Father,” and collectively, “Parents”) appealed a magistrate court’s Final Judgment terminating their parental rights to Jane Doe II (“Child”). Jane Doe I and John Doe I (“Grandmother,” “Grandfather”) initiated the underlying action by filing a Petition for Termination of Parental Rights and a Petition for Adoption. The magistrate court issued a Final Judgment terminating Parents’ parental rights after concluding that Parents had abandoned Child and that the termination of Parents’ parental rights was in Child’s best interest. On appeal, Parents challenged the magistrate court’s conclusion that Child was abandoned and that termination of parental rights was in Child’s best interest. Finding no abuse of discretion or other reversible error, the Idaho Supreme Court affirmed the termination. View "John & Jane Doe (2017-19) v. John & Jane Doe I" on Justia Law

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Appellant Norman Wechsler and Respondent Sharon Wechsler, divorced in New York in 2005. A Divorce Judgment was entered by the New York County Clerk on February 3, 2006, setting forth a distribution of the parties’ property and maintenance obligations. In 2014, Sharon moved a New York court for an order to direct the entry of a money judgment in her favor because Norman had defaulted on his obligation to transfer funds according to the Divorce Judgment. A New York court granted Sharon’s motion and issued a $9,468,008.98 Judgment in her favor. In 2012, Sharon partially collected on a $17,669,678.57 divorce-related Judgment by executing on Norman’s house in Colorado. Between the acquisition of Norman’s Colorado house, and the filing of the Foreign Judgment in Idaho, Norman did not disclose his updated address; accordingly, in an affidavit filed with the Idaho Foreign Judgment, Sharon indicated that Norman’s last known address was the Colorado house that she had acquired. Unbeknownst to Sharon, Norman had moved to a rental apartment in Angel Fire, New Mexico. After living in New Mexico for one year, Norman moved to Pocatello, Idaho. The New York Judgment at issue here was filed in Idaho as a “Foreign Judgment,” and the issues before the Idaho Supreme Court relate to Sharon’s attempts to collect. Norman challenged the Idaho district court’s order in favor of Sharon; he attacked the judgment on jurisdictional, constitutional, abuse-of-discretion and procedural grounds. Finding none of these arguments availing, the Idaho Supreme Court affirmed the Idaho district court’s judgment and awarded Sharon attorney fees. View "Wechsler v. Wechsler" on Justia Law

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Philip Hudson appealed a district court’s grant of partial summary judgment in favor of the State of Idaho, the Idaho State Board of Land Commissioners and the Idaho Department of Lands (collectively, the “State”). The district court found that Hudson violated the Idaho Lake Protection Act (the “LPA”) when he placed fill in the bed of Priest Lake without a permit. Hudson disputed the location of the Ordinary High Water Mark (the “OHWM”) and argued the fill was placed on his own property to protect it from erosion. Hudson argued that there was an issue of material fact regarding the location of the OHWM, which made summary judgment improper. Finding the dispute regarding the OHWM was not a material fact in determining whether Hudson violated the LPA, the Idaho Supreme Court affirmed summary judgment. View "Idaho Board of Land v. Hudson" on Justia Law

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Dennis Current appealed an Idaho Industrial Commission decision that determined he was ineligible for unemployment benefits based on willful underreporting of his earnings to the Idaho Department of Labor (“IDOL”). IDOL discovered wage discrepancies between the amount reported by Current and the amount reported by his employer, Wada Farms Partnership for two weeks in March 2016. On appeal, Current disputed that he “willfully” misrepresented his wages. Finding "substantial and competent evidence" supported the Commission's finding, the Idaho Supreme Court affirmed the Commission's decision. View "Current v. Dept of Labor" on Justia Law

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This was an insurance bad faith case arising out of a claim for underinsured motorist coverage. In May 2008, Peggy Cedillo was injured in a collision while riding as a passenger on the back of a motorcycle. About a year after the collision, she settled her claim against the motorcycle driver for $105,000, the total amount available under his insurance policy. Cedillo married the motorcycle driver about eight months after the collision, and he was her lawyer in this lawsuit and designated as one of her experts. Cedillo claimed the district court erred when it: (1) granted summary judgment in favor of Farmers on her bad faith claim; (2) denied discovery of the entirety of Farmers’ claims file and certain electronic information; and (3) denied a motion to amend her complaint to include a claim for punitive damages. The Idaho Supreme Court, after review of the terms of the insurance contract and the district court record, affirmed the grant of summary judgment on Farmers’ motion relating to the bad faith claim: “General conclusions about Farmer’s conduct do not provide the facts needed to overcome summary judgment on the ‘fairly debatable’ element. Thus, the district court did not err in granting Farmers’ motion for summary judgment.” View "Cedillo v. Farmers Ins. Co. of Idaho" on Justia Law

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In a quiet title action, a landowner brought suit against a lender to extinguish a deed of trust that was recorded against the landowner’s property. The landowner claimed that the lender’s time to foreclose the deed of trust had expired. The district court denied a motion to enter default judgment in favor of the landowner, finding, among other things, that the statute of limitations to foreclose the deed of trust had not run. The district court entered a judgment dismissing the landowner’s suit. Finding no reversible error, the Idaho Supreme Court affirmed the district court’s judgment. View "CMJ Properties v. JP Morgan Chase Bank" on Justia Law

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At issue in this matter was landowners’ recourse against an irrigation district for diverting a portion of their water source to other landowners within the district. The appellants-landowners owned farms in Jerome County; A&B Irrigation District (the “District”) distributed water to these farms and others throughout its service area in Jerome and Minidoka Counties. The District serves two distinct sub-areas in its district: Unit A and Unit B. The water the District distributes comes from two sources: (1) surface water from the Snake River and associated reservoirs, and (2) groundwater from the Eastern Snake Plain Aquifer. These two water sources were historically what separated Units A and B, and many owners based their land choices in the 1950s on the water source. Unit A farms have received surface water exclusively since the District’s inception. For decades Unit B farms received only groundwater, but the District converted approximately 1400 Unit B acres to surface water in the 1990s in response to decreasing groundwater supply. Appellants claimed the Project primarily benefited Unit B landowners at the expense of Unit A by diverting a portion of Unit A’s sole water source (surface water) onto Unit B land and “diluting” their annual water supply. Additionally, the District divided Project costs equally among all landowners despite what Appellants claim was the Project’s primary purpose: to help sustain Unit B farms as their groundwater supply continues to decline. The landowners brought an action for a declaratory judgment regarding their constitutional water and property rights. They also sought injunctive relief against the irrigation district for a breach of fiduciary duty. The district court granted the irrigation district’s motion to dismiss on all three of the landowners’ claims. The landowners’ appeal centered on two issues with respect to their three claims against the District: the legal standard under which the district court dismissed Appellants’ claims, and the court’s substantive determinations under that standard. Appellants contend the district court erred both procedurally and substantively in dismissing all three counts in its amended complaint. Procedurally, they claimed the district court improperly considered matters outside the pleadings in dismissing all three claims under Rule 12(b)(6), rather than converting to the Rule 56 summary judgment standard. Substantively, Appellants contended that Counts I and III were justiciable as presented on the face of their amended complaint, and that res judicata did not bar relief under Count II. The Idaho Supreme Court found after review that the landowners failed to demonstrate justiciable claims in their Counts I and III, and that the district court erred in dismissing their property rights claim in Count II by considering matters outside the pleadings under Rule 12(b)(6). View "Paslay v. A&B Irrigation District" on Justia Law

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In 2016, the Economic Advisory Council (“the EAC”), a body created under authority of Idaho Code section 67-4704, granted a tax credit of $6.5 million to Paylocity, an Illinois corporation. Employers' Resource Management ("Employers") complaint alleged that this tax credit was a governmental subsidy to Paylocity that would give it a competitive advantage over Employers. Employers challenged the Idaho Reimbursement Incentive Act ("IRIA") program as unconstitutional, alleging that the Legislature unconstitutionally delegated its authority over tax matters to the Executive Branch. The district court dismissed Employers' complaint for declaratory relief for lack of standing. The district court’s rejection of Employers’ claim of competitor standing was, in part, based upon its view that “even when competitor standing has been recognized, ‘it is only when a successful challenge will set up an absolute bar to competition, not merely an additional hurdle, that competitor standing exists.’ ” The Idaho Supreme Court was not persuaded that view was an accurate statement of the law of competitor standing, and vacated the district court's judgment.The case was remanded for further proceedings. View "Employers Resuorce Mgmt Co v. Ronk" on Justia Law

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Kenneth and Donna Johnson appealed a district court judgment recognizing a tribal judgment from the Coeur d’Alene Tribal Court (Tribal Court). The Johnsons owned land within the Coeur d’Alene Reservation (Reservation) on the banks of the St. Joe River and had a dock and pilings on the river. The Coeur d’Alene Tribe (Tribe) initiated an action in Tribal Court to enforce a tribal statute which required a permit for docks on the St. Joe River within the Reservation. The Johnsons did not appear and a default judgment was entered against them. The judgment imposed a civil penalty of $17,400 and declared that the Tribe was entitled to remove the dock and pilings. On January 2016, the Tribe filed a petition to have the Tribal Court judgment recognized in Idaho pursuant to the Enforcement of Foreign Judgments Act. I.C. sections 10-1301, et seq. The district court held the Tribal Judgment was valid and enforceable, entitled to full faith and credit. However, the Idaho Supreme Court determined the district court was incorrect in holding the Tribal Judgment was entitled to full faith and credit, and the civil penalty was not entitled to recognition in Idaho courts. However, the Idaho Supreme Court held the Tribal Court had jurisdiction over the Johnsons and the subject matter of this case; the Johnsons did not meet their burden of establishing the Tribal Court did not have jurisdiction, and the Johnsons were afforded due process in Tribal Court. In this case the judgment comprised two parts: (1) the civil penalty of $17,400; and (2) the declaration that the Tribe had the right to remove the offending encroachment. The civil penalty was not enforceable under principles of comity. However, the penal law rule does not prevent courts from recognizing declaratory judgments of foreign courts. Therefore, the Idaho Supreme Court vacated the district court’s judgment to the extent that it recognized the Tribal Court’s judgment imposing the civil penalty of $17,400. The Court affirmed the judgment recognizing the Tribal Court judgment regarding the Tribe’s right to remove the dock and pilings. View "Coeur d' Alene Tribe v. Johnson" on Justia Law