Justia Idaho Supreme Court Opinion Summaries

In 2009, Joseph Pierce filed suit against Steven McMullen and Highland Financial, LLC, seeking damages for various violations of the Idaho Consumer Protection Act and for breach of contract, all based upon an alleged scam in which the Defendants represented that they could protect Pierce from losing his equity in real property that was facing foreclosure. Pierce alleged that the Defendants obtained title to his real property pursuant to a promise to assume the loans secured by the property, to market and sell the property, and to pay him at least $50,000 or more from the sale proceeds, depending upon the sale price. He claimed that he deeded the property to the Defendants, that they failed to make the payments on the loans, and that the property was sold at a foreclosure sale. The complaint also alleged that Highland Financial was the alter ego of McMullen. Defendants did not appear, and on August 6, 2010, the court entered default against them. Mr. Pierce filed his amended complaint on May 11, 2011. The complaint simply added allegations to support an award of punitive damages. On June 13, 2011, Mr. McMullen filed a notice of appearance on behalf of himself and on behalf of Highland Financial. McMullen filed an answer to the amended complaint in his behalf and on the behalf of Highland Financial. McMullen was not licensed to practice law in Idaho, therefore his appearance on behalf of Highland Financial and the answer he filed on its behalf were nullities. In his answer, McMullen only denied the allegations regarding punitive damages. The case was scheduled for trial to commence on June 18, 2012. Plaintiff appeared with counsel, but the Defendants again did not appear. After discussion with Pierce’s counsel, the district court stated that McMullen "is defaulted, his answer is stricken, and the plaintiff prevails on their [sic] claims," then asked Pierce to present evidence as to damages. Pierce testified as did another alleged victim of. McMullen. At the conclusion of the testimony, Pierce’s counsel filed proposed findings of fact and conclusions of law and a trial brief. The district court then issued its memorandum decision holding that. Pierce failed to prove any of his claims and ordered that his amended complaint be dismissed with prejudice. Pierce timely appealed. Largely because Defendants failed to appear and failed to answer the complaint and the facts of this case were therefore undisputed, the Supreme Court concluded that the district court erred in holding that Pierce did not prove his case. The case was remanded for further proceedings. View "Pierce v. McMullen" on Justia Law

Appellant Marvin Morgan appealed the dismissal of his wrongful death action, as well as an order imposing sanctions against him and his former attorney. Morgan asserted that he was entitled to special and general damages as a result of the wrongful death of his wife, Ella Morgan. In January of 2004, Mrs. Morgan underwent testing at the Idaho Heart Institute in Idaho Falls. After reviewing Mrs. Morgan’s test results, Dr. John Chambers recommended that she return for an angiogram. The Morgans expected that Dr. Chambers would perform the angiogram. Mr. Morgan drove Mrs. Morgan to the Idaho Heart Institute for her scheduled angiogram. Morgan asserts that it was not Dr. Chambers who performed the angiogram, but Dr. Michael Demos, a doctor who neither of the Morgans had ever met. Morgan alleged that Dr. Demos negligently performed the angiogram, "causing a dissection and damage to Mrs. Morgan’s heart and right coronary artery, creating a medical emergency which then necessitated a high-risk medical procedure in an attempt to repair the damage." Mrs. Morgan passed away on February 24, 2004, purportedly because of complications resulting from the angiogram performed by Dr. Demos. The case sat "dormant for a remarkable twenty one months." Due to the inactivity, Mr. Morgan's son filed notice of substitution of counsel, then attempted to reopen the case. Morgan's motion to reopen was ultimately denied, and the case dismissed with prejudice. The Supreme Court concluded the district court did not abuse its discretion for dismissing the case without prejudice, but vacated the sanction against Morgan's former counsel. View "Morgan v. Demos" on Justia Law