Justia Idaho Supreme Court Opinion Summaries

Articles Posted in Civil Procedure
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Tenant Dennis Florer brought an action against Yar Walizada, his landlord, for breach of the warranty of habitability based on an alleged failure to provide an adequate heat source. Walizada moved to dismiss, asserting that Florer lacked standing to bring the action because, by the time Florer provided written notice under Idaho Code section 6-320, the alleged breach had already been cured. The district court denied the motion and, following a bench trial, entered judgment in Florer’s favor. Walizada appealed, arguing the district court erred in denying his motion to dismiss. After review, the Idaho Supreme Court found: Walizada rented a house without an adequate heat source to Florer; he had an obligation to provide an adequate heat source; he induced Florer to install the stove by promising to offset Florer’s costs against his rent; and he reneged on this promise. The Court found Florer could have sued for breach of the oral agreement to offset the costs of installation against his rent, and given the result below, it appears he would have been successful if he had. However, Florer brought suit under section 6-320, and this suit was not preceded by a written notice allowing three days to cure, the district court’s failure to grant Walizada’s motion to dismiss contradicted the plain language of section 6-320; therefore, the Court reversed its decision. View "Florer v. Walizada" on Justia Law

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This appeal stemmed from a years-long dispute between Robert Elgee and the Retirement Board of the Public Employee Retirement System of Idaho (“PERSI”) regarding the payment of retirement benefits accrued during Elgee’s service as a magistrate judge. Elgee became eligible for PERSI benefits in 2010, but operating under an erroneous interpretation of the statutes it administers, PERSI maintained Elgee was not then entitled to receive benefits. Eleven years, numerous administrative determinations, and two judicial review actions later, the parties continued to disagree on issues relating to the calculation of benefits, the interest due on benefits, and whether Elgee was entitled to damages for the tax consequences of receiving a lump sum payment of retroactive benefits. After review, the Idaho Supreme Court affirmed the district court as to the applicable rate of interest, reversed as to the remaining issues, and remanded for entry of judgment. On remand the district court was directed to enter judgment that reflected: (1) the PERSI Board’s determination that Elgee was due interest at the regular rate of interest under the PERSI statutes was affirmed; (2) the PERSI Board’s determination that Elgee was due interest from 2013, rather than 2010, was set aside; (3) the PERSI Board’s determination that Elgee was due benefits under the contingent annuitant option, rather than the regular retirement option was affirmed; (4) the PERSI Board’s determination that Elgee failed to prove his tax loss claim in 2018 was set aside; and (5) the PERSI Board’s determination that tax loss damages were not available under the PERSI statutes was affirmed. View "Elgee v. Retirement Brd. of the Public Employee (PERSI)" on Justia Law

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Craig Stark entered into a contract with McCarthy Corporation to construct a storage facility for recreational vehicles and boats. The relationship turned sour after McCarthy sent Stark an invoice for work Stark believed he had already paid for in full. After the parties were unable to resolve their dispute, Stark terminated McCarthy’s contract. McCarthy then filed a lien against Stark’s property and brought suit for breach of contract and to foreclose its lien. Stark, Stark Investment Group, and U.S. Bank, Stark’s construction lender on the project, counterclaimed for breach of contract, breach of the implied covenant of good faith and fair dealing, fraudulent misrepresentation, slander of title by the recording of an unjust lien, and breach of the Idaho Consumer Protection Act (“ICPA”). After a bench trial, the district court largely agreed with Stark's counterclaims and dismissed McCarthy's complaint. McCarthy appealed the district court’s findings, damages award, and attorney fees award. Finding no reversible error, the Idaho Supreme Court affirmed the district court's holdings that McCarthy breached the contract between the parties and McCarthy violated the ICPA. View "McCarthy Corporation v. Stark Investment Group" on Justia Law

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In December 2014, Steve Tenny sustained a right-sided lumbar disc herniation injury during the course of his employment with Loomis Armored US (Loomis). He immediately began treatment, receiving a series of right-sided steroid injections in his back. At some point shortly after the second injection, Tenny began to complain of increasing left hip and groin pain and underwent testing and treatment for these symptoms. However, the worker’s compensation insurance surety, Ace American Insurance Co., ultimately denied payment for treatment related to the left-side groin pain. Following the matter going to hearing, the Referee recommended that the Industrial Commission find that the left-sided symptoms were causally related to Tenny’s December 2014 industrial accident. The Industrial Commission adopted the Referee’s findings, and after unsuccessfully moving for reconsideration, the employer and surety (collectively, "Defendants") appealed to the Idaho Supreme Court. At issue before the Supreme Court was the question of causation: Was the left-side groin pain experienced by Tenny causally related to his industrial accident? Finding no reversible error, the Idaho Supreme Court affirmed the Industrial Commission's decision. View "Tenny v. Loomis Armored US, LLC" on Justia Law

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Praveen Khurana appealed an administrative order entered by the Administrative District Judge (“ADJ”) declaring him to be a vexatious litigant pursuant to Idaho Court Administrative Rule 59. The order prohibited Khurana from filing any new pro se litigation in the state of Idaho without first obtaining leave of the court where the litigation was proposed to be filed. In November 2018, the Idaho Department of Health and Welfare (“Department”) filed a motion with the district court requesting that Khurana be declared a vexatious litigant pursuant to Rule 59(d). At the time, the Department was engaged in two separate litigations against Khurana, a Medicaid estate recovery action (“Medicaid action”) and a child support enforcement action. Attached to the Department’s motion was an order from the Court of Queen’s Bench Alberta, a Canadian court, declaring Khurana a vexatious litigant and restricting his access to Alberta’s courts. Khurana timely appealed the ADJ’s order declaring him a vexatious litigant. Finding no reversible error in the declaration, the Idaho Supreme Court affirmed the district court’s judgment. View "Khurana v. IDHW" on Justia Law

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Linda Black sustained second-degree burns on her back while undergoing electrotherapeutic treatment at Superior Physical Therapy (“SPT”). Black’s treatment was performed by Bart McDonald, a licensed physical therapist and the sole owner of SPT. Black brought a product liability claim against the manufacturer and seller of the self- adhesive carbon electrode pads used during her treatment. The manufacturer moved for summary judgment on the grounds that Black was unable to prove that the electrode pads were defective or that the injuries Black sustained were proximately caused by its negligence. The district court ruled that: (1) McDonald’s conclusory statements that the electrode pads were defective were inadmissible because he was not a qualified expert; (2) the doctrine of res ipsa loquitur did not apply to Black’s case; and (3) Black’s prima facie case failed because there was evidence of abnormal use of the electrode pads and other reasonable secondary causes that could have contributed to Black’s injury. The district court granted summary judgment in favor of the manufacturer. Finding no reversible error, the Idaho Supreme Court affirmed the district court’s decision. View "Black v. DJO Global" on Justia Law

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Progressive Northwest Insurance Company (“Progressive”) insured Dean and Laura Lautenschlager with a combined single limit policy of $500,000, which provided liability coverage, in addition to underinsured and uninsured motorist coverage. The Lautenschlagers were subsequently injured in a collision between their motorcycle, driven by Dean, and a van, driven by an underinsured motorist. Both Dean and Laura individually recovered the policy limits of $15,000 per-person from the underinsured motorist. In addition, Laura recovered a $375,000 settlement from Progressive due to Dean’s partial responsibility for the collision. Progressive then filed this lawsuit seeking a declaration that Progressive was only responsible for an additional $95,000 in underinsured motorist benefits under the policy following the various settlements. The district court granted summary judgment in Progressive’s favor, concluding that the offset provisions in the Lautenschlagers’ policy did not violate Idaho public policy and that the remaining coverage from Progressive was limited to $95,000. The Lautenschlagers appealed, arguing that the offset provisions of their insurance policy are void on public policy grounds and that the policy is ambiguous with respect to the amount of coverage offered. Finding no reversible error, the Idaho Supreme Court affirmed the district court. View "Progressive Northwest Insurance Company v. Lautenschlager" on Justia Law

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Beginning in the 1980s and 1990s, two Idaho businesses did roofing work under substantially similar names: one, Gem State Roofing, Inc., performed work primarily in Blaine County (Gem State-Blaine); the other was a corporation operating under the name Gem State Roofing and Asphalt Maintenance, which also did business as Gem State Roofing. The latter was based in Boise, Idaho, and performed work in a significantly larger area. In 2011, Gem State Roofing and Asphalt Maintenance was succeeded in interest by United Components, Inc. (UCI.) Notwithstanding its change of name, it continued to do business as Gem State Roofing. In 2005, prior to UCI’s name change, the two businesses with similar names entered into a Trademark Settlement Agreement (TSA), prohibiting UCI from advertising, soliciting, or performing business in Blaine County, with exceptions for certain services (i.e., warranty, maintenance work, or work performed for previous customers). In addition, UCI agreed that if it received a request for work it was contractually unable to fulfil because of the TSA, it would refer the work to Gem State-Blaine. In 2018, Gem State-Blaine sued UCI, alleging it had breached the TSA when it advertised, solicited, bid on, and performed roofing work in Blaine County, and had failed to refer requests for work as required under the TSA. After a bench trial, the district court concluded that, despite UCI’s breach of the TSA and the implied covenant of good faith and fair dealing, Gem State-Blaine had failed to prove damages or that it was entitled to a permanent injunction. The district court further found that Gem State-Blaine had no protectable common-law trademark. Finally, the district court concluded that there was no prevailing party and declined to award attorney fees and costs. Gem State-Blaine timely appealed. UCI timely cross-appealed the district court’s denial of its request for attorney fees and costs. After review, the Idaho Supreme Court reversed in part, affirmed in part, vacated in part, and remanded for further proceedings. The district court’s refusal to enter a permanent injunction was reversed, and the court directed to enter a permanent injunction to enjoin UCI from any further breach of the TSA. The district court’s refusal to award attorney fees and costs as a sanction for UCI’s discovery violations, and the district court’s conclusion that Gem State-Blaine did not have a protectable common-law trademark against UCI were also reversed. The Supreme Court vacated the district court’s determination that neither party prevailed. The matter was remanded for the district court to determine whether there was a prevailing party, and to determine if attorney fees and costs should be awarded. The district court’s decision denying damages was affirmed. View "Gem State Roofing, Incorp. v. United Components, Inc." on Justia Law

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Loyd Eugene Ware filed suit against the City of Kendrick (the City) alleging that in December 2016, a water pipe maintained by the City failed and flooded his property, causing damage. The City answered, claiming that Ware had failed to file a timely notice of tort claim within 180 days of the City’s alleged negligence, a statutory prerequisite to filing suit against a governmental entity under Idaho Code section 6-906. The City averred the flooding occurred on December 17, 2016, and the notice of tort claim was not filed until two hundred twenty-two days later. The City thus moved for summary judgment, which was granted by the district court. Ware timely appealed. Finding no reversible error, the Idaho Supreme Court affirmed the grant of summary judgment in favor of the City. View "Ware v. City of Kendrick" on Justia Law

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Alicia Gangi brought a declaratory judgment action against Mark and Jane Doe Debolt (“Debolts”), the owners of a parcel adjacent to Gangi’s property. While a water tank and deck lie on Gangi’s property, the system only served the Debolts’ property with water. Moreover, the Debolts enjoyed exclusive use and enjoyment of an above-ground deck atop the water tank, since their property included an easement to the land where the water tank and deck were located. After the district court denied Gangi’s motion for summary judgment, Gangi dismissed her own case with prejudice. Thereafter, the Debolts sought attorney fees on the basis of a recorded agreement Gangi’s and the Debolts’ predecessor in interest had with a third party regarding the water system. The agreement provided that attorney fees would be awarded to the prevailing party if a suit were brought to enforce or interpret the agreement. On the basis of that agreement, the district court granted Debolts’ request for attorney fees. Gangi appealed. The Idaho Supreme Court found that Gangi’s action was not brought to interpret or enforce the Debolts’ predecessor in interest’s agreement. “The true gravamen of the lawsuit was the interpretation of the 2012 Elliott-Debolt easement agreement and whether that agreement provided the Debolts with an exclusive easement to use the water system and the deck. Therefore, inasmuch as the district court’s decision was neither consistent with existing legal standards nor reached through the exercise of reason, we conclude that the district court abused its discretion by awarding attorney fees to the Debolts under the prior Elliott-Debolt agreement.” View "Gangi v. Debolt" on Justia Law