Justia Idaho Supreme Court Opinion Summaries

Articles Posted in Contracts
by
John Kugler appealed the grant of summary judgment in his suit against Ron Nelson, David Powers, Steven Kenison, William Armstrong, and Powers Candy Co., Inc. (collectively “the Defendants”). Until mid-2010, Kugler, Nelson, Powers, Kenison, and Armstrong were all shareholders of H & M Distributing, Inc. (H & M), a wholesale distributor of beverages, cigarettes, and other miscellaneous items. In his complaint, Kugler alleged breach of various agreements and wrongful actions taken by the Defendants all in relation to Nelson's departure from H & M. The district court dismissed all of Kugler’s claims because it found that the claims were derivative and Kugler failed to comply with derivative action requirements. Finding no reversible error, the Supreme Court affirmed. View "Kugler v. Nelson" on Justia Law

by
Appellant Bryan Trucking, Inc., sued Respondent Terry Gier for fraud, based on statements and representations Gier allegedly made to Bryan Trucking that induced Bryan Trucking to purchase a used commercial truck from a third party. Gier was a member of Gier Jammer’s Diesel Repair, LLC. Gier Jammer’s serviced long-haul trucks for Bryan Trucking starting in 2009. In August 2012, Gier Jammer’s overhauled the motor in a 2005 Kenworth truck owned by Niel Ring Trucking, Inc. (“Ring Trucking”). Niel Ring (“Ring”) notified Gier that Ring Trucking wanted to sell the truck, and Gier arranged the deal. The district court dismissed the claim by stipulation of the parties. Bryan Trucking appealed the district court’s subsequent award of costs and attorney fees to Gier. Finding no reversible error in the district court's decision, the Supreme Court affirmed. View "Bryan Trucking v. Gier" on Justia Law

by
Kara Alexander sued Vianna Stibal for fraud, breach of contract, and punitive damages. A jury awarded Alexander $111,000 on her contract claim, $17,000 on the fraud claim, and $500,000 in punitive damages. Stibal is the owner and operator of Nature Path, Inc. and the ThetaHealing Institute of Knowledge (THInK). In the beginning of 2008, THInK announced that it would offer a newly-created doctoral degree in ThetaHealing. students of ThetaHealing, including Alexander, began to question the validity of her doctoral degrees. In November of 2011, Alexander filed a complaint against Stibal, alleging breach of contract and fraud. During the trial, the district court denied Stibal’s motion for a directed verdict on the fraud and breach of contract claims. Following trial, Stibal moved for a new trial and for judgment notwithstanding the verdict (JNOV). The district court denied these post-trial motions, but reduced the punitive damages award to $384,000. On appeal, Stibal challenges the district court’s rulings on the contract, fraud, and punitive damages issues. After review, the Supreme Court reversed the district court’s order denying Stibal’s motion for JNOV on the contract claim. The Court vacated the district court’s judgment and remanded with directions for the district court to enter a new judgment reflecting our ruling on the contract claim and the reduction in punitive damages to $100,000. The Court affirmed in all other respects. View "Alexander v. Stibal" on Justia Law

by
In 2013, plaintiff Fagen, Inc. filed this lawsuit seeking to recover damages for work it had done in the construction of a wind park located in Bingham County. It named as defendants Lava Beds Wind Park, LLC; Exergy Development Group of Idaho, LLC; and XRG Development Partners, LLC (collectively “Defendants”); and Tabor Wind Farms, LLC. The district court entered an order dismissing Plaintiff’s claims against Tabor pursuant to a stipulation of those parties. Plaintiff then filed an amended complaint against the remaining defendants, alleging causes of action to foreclose a mechanic’s lien, to recover damages for breach of contract, and to recover damages in quantum meruit. Plaintiff moved for summary judgment seeking a judgment against Lava Beds and Exergy Development for breach of contract. In opposition to that motion, defendants filed two affidavits, which merely contained vague and conclusory allegations. The district court denied defendants’ motion to continue the hearing on summary judgment. During the hearing, Plaintiff stated that it withdrew its claim to foreclose a mechanic’s lien and its claims against XRG, which resolved these Defendants’ motion for summary judgment. Defense counsel admitted that Lava Beds and Exergy Development had breached their contract with Plaintiff, but he argued that one of the affidavits showed a need for further discovery at least as to the issue of damages. The court took the motion for summary judgment under advisement, then granted Plaintiff’s motion. It held that the conclusory affidavits submitted by Defendants were insufficient to create a genuine issue of material fact precluding summary judgment. On the same date, the court entered an order granting Defendants’ motion for summary judgment. Lava Beds and Exergy Development's motion for reconsideration was denied, and they appealed. Finding no reversible error, the Supreme Court affirmed the trial court's decision. View "Fagen v. Lava Beds Wind Park" on Justia Law

by
This case was an appeal of an amended judgment awarding damages for breach of contract, court costs, and attorney fees in connection with a contract to construct five wind farms. Because the parties had stipulated to that portion of the judgment regarding the damages for breach of contract, those issues were not subject to appellate review. Because the only challenge to the award of attorney fees was raised for the first time on appeal, the Supreme Court did not consider it. The Court therefore affirmed the amended judgment and the award of costs and attorney fees on appeal. View "Fagen v. Rogerson Flats Wind Park" on Justia Law

by
Plaintiff-appellant Jeffrey Huber brought this action against his former employer, Lightforce USA, Inc. (“LFUSA”), for breach of contract and failure to pay wages. Huber’s claims centered on two employment agreements: a Company Share Offer (“CSO”), and a Deed of Non-Disclosure, Non-Competition and Assignment (“NDA”). Huber claimed that upon his termination LFUSA was obligated to pay him the value of 30% of the goodwill of LFUSA under the CSO and twelve months’ pay under the NDA. The parties agreed that the CSO was a deferred compensation plan and was, therefore, governed by the Employee Retirement Income Security Act (“ERISA”). At a bench trial, Huber succeeded only on his breach of contract claim under the NDA. Huber timely appealed the district court’s rulings on summary judgment: (1) holding that the amount owed under the NDA was not wages under the Idaho Wage Claims Act, (2) dismissing his wrongful termination claim, and (3) holding that the CSO was a “top hat” plan under ERISA and, therefore, exempt from ERISA’s vesting and anti-forfeiture provisions. Huber also appealed the district court’s ruling at trial that Huber forfeited the benefit under the CSO, and the district court’s rulings on post-trial motions: (1) denying his claim for equitable relief, (2) calculating Huber’s award of prejudgment interest, and (3) awarding attorney fees and costs to LFUSA. The Supreme Court affirmed the district court in part and reversed in part, finding: (1) the CSO was a top hat plan under ERISA and that Huber forfeited the benefit under the CSO; (2) it was proper to deny Huber’s claim for equitable relief and denying Huber’s motion to amend his complaint to conform to the evidence; (3) the district court erred by ruling that the amount owed under the NDA was not "wages" under the Idaho Wage Claims Act; (4) the district court erred with respect to prejudgment interest and costs and fees to LFUSA. The case was remanded back to the district court to treble the $180,000 judgment. Post-judgment interest shall accrue on the trebled amount of $540,000 from December 10, 2013, the date of entry of the judgment. View "Huber v. Lightforce USA, Inc." on Justia Law

by
Defendant Dennis Sallaz and Defendants-counterclaimants Glenn Trefren and Tradesman Contractors and Construction, LLC, (collectively “Appellants”) appealed the district court’s holding they could not recover breach of contract damages or obtain equitable relief for the failure of Plaintiff-counterdefendant Real Properties, LLC, to pay the full purchase price under an agreement for the sale and purchase of Real Homes, LLC. Although the district court found that the contract between Sallaz and Trefren, as sellers, and Real Properties, as buyer, was valid, it held that Real Properties’ performance of the contract was excused because of a material breach by the sellers. The district court held that equitable relief was not available because of the existence of the contract. Upon review, the Supreme Court concluded that the district court erred in dismissing the counterclaimants' claim for breach of contract. The district court's dismissal of count 3 of the counterclaim was vacated and remanded pending the outcome of reconsideration of count 1. View "Rice v. Sallaz" on Justia Law

by
This appeal arose out of a district court’s decision to affirm a magistrate court’s order granting Michelle Campbell relief on her breach of contract claim. This case stemmed from an employment offer Parkway Surgery Center, LLC made to Campbell. The offer included assurances that Parkway would “take care of” a loan Campbell had with her previous employer, Bingham Memorial Hospital (BMH). When Parkway refused to pay the obligation as promised, Campbell filed suit for a breach of contract. Following a bench trial, the magistrate court ruled in favor of Campbell and awarded her damages in the amount of the loan plus interest. Parkway appealed to the district court, which affirmed the magistrate’s order, but remanded to the magistrate court to reform the judgment to grant Campbell specific performance. Parkway appealed to the Idaho Supreme Court. On appeal, Parkway raised several arguments, including that the district court erred when it: (1) affirmed the magistrate court’s order; (2) determined Campbell was entitled to specific performance; (3) determined the statute of frauds did not apply in this case; and (4) awarded attorney fees to Campbell. Upon review, the Supreme Court concluded the trial court erred in reforming the magistrate court's judgment to grant Campbell specific performance. The court affirmed the district court in all other respects. The case was remanded for further proceedings. View "Campbell v. Parkway Surgery" on Justia Law

by
Appellant Mike Von Jones arranged to hunt big game in Zimbabwe, Africa, with HHK Safaris (Pvt) Ltd. Jones went on the hunt and received an invoice for $26,040.00 from Respondent Safaris Unlimited LLC. Jones refused to pay Safaris Unlimited for the hunt. Safaris Unlimited filed a suit for breach of contract. Jones responded that he arranged and engaged in the hunt with HHK, not Safaris Unlimited, and therefore he had no contractual relationship with Safaris Unlimited for payment. He further alleged that he was entitled to offset any amount owed for the hunt with the value of certain trophy items from the hunt and an earlier hunt. Safaris Unlimited moved for summary judgment. The district court granted its motion and entered judgment in favor of Safaris Unlimited. Jones appealed. Upon review, the Supreme Court found that Safaris Unlimited operated as a broker or booking agent for HHK. Other than the actual hunting services provided by HHK, Safaris Unlimited coordinated and assisted on all details of the hunt, such as accommodations, transportation, and permits. The Court concluded that it was improper for the trial court to have granted summary judgment in favor of Safaris Unlimited because whether there was a contract at the heart of this matter was a genuine issue of material fact. The Court therefore vacated and remanded for further proceedings. View "Safaris Unlimited v. Jones" on Justia Law

by
In 2012, a fire destroyed three buildings and related equipment that were owned by Jackson Hop, LLC, and were used to dry hops, to process and bale hops, and to store hop bales. The buildings were insured by Farm Bureau Mutual Insurance Company of Idaho for the actual cash value of the buildings and equipment, not to exceed the policy limit. Farm Bureau’s appraisers determined that the actual cash value of the buildings was $295,000 and the value of the equipment was $85,909. Farm Bureau paid Jackson Hop $380,909. Jackson Hop disagreed with that figure, and it hired its own appraiser, who concluded that the actual cash value of the buildings and equipment totaled $1,410,000. Farm Bureau retained another appraiser to review the report of Jackson Hop’s appraiser, and that appraiser concluded that the value of $1,410,000 was unrealistically high. Jackson Hop filed this action to recover the balance of what it contended was owing under the insurance policy, plus prejudgment interest. The parties agreed to submit the matter to arbitration as provided in the policy. During that process, Jackson Hop presented additional opinions regarding the actual cash values, ranging from $800,000 to $1,167,000 for the buildings and $379,108 to $399,000 for the equipment. Farm Bureau’s experts revised their opinions upward, although only from $295,000 to $333,239 for the buildings and from $85,909 to $133,000 for the equipment. Before completion of the arbitration, Farm Bureau paid an additional sum of $85,330. Arbitrators determined that the actual cash value of the buildings and the equipment was $740,000 and $315,000, respectively, for a total of $1,055,000. Within seven days of the arbitrators’ decision, Farm Bureau paid Jackson Hop $588,761, which was the amount of the arbitrators’ award less the prior payments. Jackson Hop filed a motion asking the district court to confirm the arbitrators’ award and to award Jackson Hop prejudgment interest, court costs, and attorney fees. Farm Bureau filed an objection to the request for court costs, attorney fees, and prejudgment interest. The court awarded Jackson Hop attorney fees, but denied the request for court costs because the parties’ arbitration agreement stated that both parties would pay their own costs, and the court denied the request for prejudgment interest because the amount of damages was unliquidated and unascertainable by a mathematical process until the arbitrators’ award. Jackson Hop then appealed. Finding no reversible error in the trial court's judgment, the Supreme Court affirmed. View "Jackson Hop v. Farm Bureau Insurance" on Justia Law