Justia Idaho Supreme Court Opinion Summaries

William Shapley appealed the district court’s dismissal of his breach of contract and negligence claims against Centurion Life Insurance Company and Wells Fargo Financial. Shapley and his wife applied for credit life insurance with Centurion on the same day they closed on a real estate loan with Wells Fargo. The Shapleys were provided with a notice of insurance underwriting practices. The application papers stated that the Shapleys would receive insurance coverage only if Centurion approved their application. Centurion never had a chance to have a phone interview with Mrs. Shapley (a requirement for the policy). The day after the Shapleys closed on their loan, Mrs. Shapley suffered a brain hemorrhage from which she died four days later. Mr. Shapley contacted Centurion the same day to claim benefits in connection with Mrs. Shapley’s passing. Centurion denied the claim because it never issued an insurance policy on Mrs. Shapley. Because the interview never took place, Centurion issued insurance solely to Mr. Shapley. Mr. Shapley argued on appeal that the district court's dismissal was in error. Upon review, the Supreme Court affirmed the district court’s decisions, finding that while the district court incorrectly concluded that there must be a contract for estoppel to apply, the denial of Mr. Shapley’s motion to amend was appropriate because his estoppel claim was futile. View "Shapley v. Centurion Life Ins Co" on Justia Law

The Supreme Court affirmed the district court’s order granting a new trial on plaintiffs' claim for breach of the implied warranty of habitability and its denial of defendants' request for attorney fees at trial. Plaintiffs Shawn and Shellee Goodspeed purchased a home from Robert and Jorja Shippen via warranty deed. After the basement of the home flooded, the Goodspeeds filed suit against the Shippens, alleging breach of the implied warranty of habitability. The district court denied a request for a jury instruction on the requirements for disclaiming the implied warranty of habitability and the case went to trial. The jury returned a verdict in favor of the Shippens, and the Goodspeeds moved for judgment notwithstanding the verdict or, alternatively, for a new trial, arguing the disclaimer of the implied warranty of habitability in the purchase and sale agreement was ineffective because it was not conspicuous. The district court granted a new trial after determining it had excluded the disclaimer instruction based upon its incorrect belief that the Goodspeeds had actual knowledge of the disclaimer. View "Goodspeed v. Shippen" on Justia Law

The Bank of Commerce filed suit to foreclose on two mortgages against properties under development by Jefferson Enterprises, LLC. Jefferson raised a variety of counterclaims. Ultimately the district court granted summary judgment in favor of the Bank, ordering the foreclosures. Jefferson raised numerous issues on appeal, but finding no error or abuse of the district court's discretion, the Supreme Court affirmed. View "Bank of Commerce v. Jefferson Ent" on Justia Law

Richard and Lisa Keane and the companies they managed, and Bald, Fat & Ugly, LLC (BFU) had a disagreement arising from a development deal involving the Houston Professional Plaza. They went to mediation, but the parties had a disagreement regarding the terms of the mediated agreement. They then turned to arbitration. The arbitrator granted two awards in favor of BFU. The award did not specify any date by which the Keanes were to pay the money, nor did the award include interest. The district court confirmed the arbitration awards, and issued a writ of execution. The sheriff returned the writ not satisfied. BFU then obtained an order for a debtor's examination. A partial satisfaction of judgment was made, but the Keanes did not direct how the payment made was to be applied to the two arbitration awards. BFU applied the partial satisfaction to one of the awards, and filed a motion to have the Keanes held in contempt for failing to pay the second. The Keanes challenged the contempt action. The Supreme Court, after its review of the matter, found that because the order confirming the arbitration award did not require the Keanes to do anything and because contempt cannot be used to enforce payment of the debt in this case, the Court reversed the judgment of the district court finding them in contempt and the order later entered awarding the respondent attorney fees and court costs. View "Bald, Fat & Ugly v. Keane" on Justia Law

Plaintiff Advanced Medical Diagnostics entered into a contract for services with Defendant Imaging Center of Idaho, LLC. Defendant stopped making payments and Plaintiff sued for damages for breach of contract. The matter was tried to a jury and the jury returned a special verdict finding that Plaintiff had proved its claim but was not entitled to damages because Defendant proved its affirmative defense. The trial court determined that Defendant was the prevailing party, and was awarded costs and attorney fees. Plaintiff appealed that award to the Supreme Court. After its review, the Supreme Court found no error in the trial court's decision and affirmed. View "Adv Medical Diagnostics v. Imaging Center of Idaho" on Justia Law

Appellants Tommy and Erin Dorsey contended that they were conveyed beachfront property when they bought "Lot 1." Respondents, who own the other lots in the subdivision, contended that the property was dedicated to the use and benefit of the entire subdivision. The district court agreed with Respondents. Plaintiffs appealed. But after a review of the trial court record, the Supreme Court affirmed the district court. View "Ross v. Dorsey" on Justia Law

In 2006, Trinity Investments, LLC executed and delivered to Idaho Trust National Bank (Lender) a promissory note in the principal amount of $5,625,000.00 to develop a parcel of real property and construct townhouses upon it. Trinity was to make monthly payments of accrued interest and to pay the outstanding principal, plus accrued interest, on December 8, 2007. Borrower and Lender later entered into several agreements to change the terms of the note to reduce the principal and extend the date of maturity. The note was secured by a construction deed of trust on the real property being developed. Michael R. Christian (Guarantor) executed the promissory note as a member of Borrower, and he also signed a guaranty of Borrower's indebtedness to Lender. Trinity ultimately defaulted on the loan, and Lender brought a lawsuit against it to recover on the promissory note. During that proceeding, they stipulated to have a receiver appointed to market and sell the real property that was the collateral for the note. The receiver was authorized to sell the townhouse units for 80% of their appraised value without court approval. Guarantor signed the stipulation appointing the receiver as attorney in fact for Trinity. By June 2011, the receiver had sold all of the remaining properties. Those sales did not generate sufficient funds to pay the sums owing on the note. In 2011, the Lender brought this action to recover from Guarantor the balance owing by Borrower on the note. The district court granted Lender's motion for summary judgment and denied Trinity's motion for reconsideration. The Guarantor timely appealed. Upon review, the Supreme Court affirmed, finding that there under the definition written in the parties' contract, '[i]ndebtedness' include[d], without limitation, loans, advances, debts, . . . and liabilities of Borrower . . . whether: . . . barred or unenforceable against Borrower for any reason whatsoever." View "Idaho Trust Bank v. Christian" on Justia Law

This case arose from the water loss claims Appellant Roger Daniel Rizzo made under Respondent State Farm Fire and Casualty Company's homeowners insurance policy. All of Appellant's claims were for water damage to his home's basement. The district court granted summary judgment in favor of the insurance company, effectively dismissing all of Appellant's causes of action because his homeowner's policy did not cover his water damage claims. Appellant also appealed the district court's denial of his motion to amend his complaint to include various new causes of action and the district court's grant of State Farm's motion for protective order against certain overbroad discovery requests. Finding no error in the district court's grant of summary judgment in favor of State Farm, the Supreme Court affirmed the district court's decisions. View "Rizzo v. State Farm Insurance" on Justia Law

This was an action brought by the grantor of a deed of trust to stop nonjudicial foreclosure proceedings based upon the contention that MERS, the Mortgage Electronic Registration Systems, which was the named beneficiary as nominee for the lender, could not legally act as the beneficiary. The defendants moved to dismiss this action on the ground that the complaint did not state a claim upon which relief could be granted. The district court agreed and entered judgment in favor of the defendants. Upon review, the Supreme Court affirmed the district court's judgment. View "Edwards v. MERS" on Justia Law

In 2007, Employers Mutual Casualty Company (EMC) brought a declaratory judgment action against the Donnellys and Rimar Construction, Inc. (RMI) to establish that under its policy of insurance with RCI, EMC had no duty or responsibility to pay damages claimed by the Donnellys in litigation between the Donnellys and RCI. The declaratory judgment action was stayed until a verdict was reached in the underlying action. In the underlying action, the Donnellys were awarded damages, costs and attorney fees against RCI. Subsequently the district court entered summary judgment in the declaratory action, finding that there was no insurance coverage for the damages the Donnellys incurred, but that there was coverage for costs and attorney fees. On appeal, EMC argued that the district court erred in its determination that it had a duty to pay attorney fees and costs when there were no damages awarded to the plaintiff subject to the policy coverage. The Donnellys cross appealed, arguing the district court erred in its conclusion that EMC did not have a duty to cover the damages in this case, and that the Donnellys were entitled to attorney fees. Upon review, the Supreme Court affirmed the district court's decision. View "Employers Mutual Casualty Co v. Donnelly" on Justia Law