Justia Idaho Supreme Court Opinion Summaries

Lewis Patrick and Michele Sivertson owned and managed Laughing Dog Brewing, Inc. (LDB), which faced financial difficulties in 2017. To address these issues, they, along with affiliated entities AHR, LLC and Fetchingly Good, LLC, engaged attorney Ford Elsaesser to restructure their debt. Elsaesser drafted a promissory note and facilitated the transfer of LDB’s assets to AHR and Fetchingly Good, allegedly without disclosing conflicts of interest or legal risks. After the asset transfer, Fetchingly Good assumed LDB’s operations, and LDB filed for bankruptcy. Acorn Investments, LLC, a creditor with a judgment against LDB, sued the Original Plaintiffs under various theories, including the Idaho Uniform Voidable Transactions Act and racketeering statutes.The litigation between Acorn and the Original Plaintiffs was resolved through a settlement agreement. The Original Plaintiffs stipulated to a judgment in favor of Acorn, but Acorn agreed not to execute on the judgment. Instead, Acorn received an assignment of the Original Plaintiffs’ claims against Elsaesser, including legal malpractice, breach of contract, and breach of fiduciary duty. Acorn substituted as plaintiff in the malpractice case. Elsaesser moved for summary judgment, arguing that the malpractice claim was not assignable. The District Court of the First Judicial District, Bonner County, agreed and dismissed the case without prejudice, finding the assignment did not meet the exception for assignability established in St. Luke’s Magic Valley Regional Medical Center v. Luciani.The Supreme Court of the State of Idaho reviewed the case and affirmed the district court’s judgment. The Court held that the assignment of the legal malpractice claim to Acorn did not fall within the Luciani exception, which allows assignment only when such claims are transferred as part of a larger commercial transaction involving other business assets and liabilities. Here, only the claims were assigned, not any business assets or obligations. The Court also declined to award attorney fees to either party, but awarded costs to Elsaesser. View "Acorn Investments, LLC v. Elsaesser" on Justia Law

Kevin Keith Bell was convicted of rape, witness intimidation, and felony domestic battery. He filed a pro-se petition for post-conviction relief, alleging prosecutorial misconduct, actual innocence, and ineffective assistance of counsel. Bell later filed an amended petition through counsel, focusing on three specific instances of ineffective assistance of counsel. The State moved for summary dismissal of the amended petition, which the district court granted. Bell then filed a motion for reconsideration, arguing the district court erred in dismissing his amended petition on grounds not raised by the State. The district court denied the motion.The district court of the Fifth Judicial District of Idaho initially handled Bell's case. After the State moved for summary dismissal, the district court granted the motion, finding Bell had not provided sufficient legal argument to support his claims of ineffective assistance of counsel. Bell's motion for reconsideration was also denied, as the district court concluded that the State had indeed argued the grounds for dismissal and that Bell had failed to demonstrate a genuine issue of material fact.The Supreme Court of the State of Idaho reviewed the case. The court held that Bell failed to preserve his argument regarding the lack of notice for the dismissal of his original claims because he did not raise this issue in his motion for reconsideration. The court also affirmed the district court's dismissal of Bell's claim that his trial counsel was ineffective for failing to inquire into an allegedly biased juror, as Bell did not provide sufficient evidence of actual bias or resulting prejudice. Consequently, the Supreme Court affirmed the district court's judgment dismissing Bell's petition for post-conviction relief. View "Bell v. State" on Justia Law

Vernon K. Smith, Jr. was declared a vexatious litigant by the Fourth District Administrative District Judge (ADJ) in Idaho. This order prevents Smith from filing new litigation pro se in Idaho courts without obtaining prior permission from a judge. The determination arose from Smith's conduct in litigation concerning the administration of his mother Victoria H. Smith’s estate. Smith, a former attorney, was involved in contentious probate proceedings after his brother successfully challenged their mother's will, which had left the entire estate to Smith. The estate was subsequently administered as intestate, leading to multiple appeals and disciplinary actions against Smith by the Idaho State Bar.The district court found that Smith repeatedly filed frivolous and unmeritorious motions, including petitions to remove the personal representative (PR) and the PR’s counsel, motions to disqualify the district court judge, and objections to court orders. These actions were deemed to lack legal or factual basis and were intended to cause unnecessary delay. The PR of the estate moved to have Smith declared a vexatious litigant under Idaho Court Administrative Rule 59(d)(3), which the district court supported, leading to the referral to the ADJ.The Supreme Court of Idaho reviewed the case and affirmed the ADJ’s decision. The court held that the ADJ did not abuse its discretion in declaring Smith a vexatious litigant. The ADJ acted within the legal standards set forth in Rule 59(d) and reached its decision through an exercise of reason. The court also found that Smith’s due process argument was not preserved for appeal as it was raised for the first time. The court declined to award attorney fees to the ADJ, concluding that Smith’s appeal, although unsuccessful, was not frivolous or unreasonable. View "Smith v. Hippler" on Justia Law

An attorney discipline case arose from allegations that Justin Oleson violated several Idaho Rules of Professional Conduct while representing Jeff Katseanes in post-divorce proceedings. Jeff's ex-wife, Judy, filed a civil complaint against him for unpaid spousal support, leading to a judgment and a motion for a Qualified Domestic Relations Order (QDRO) to access Jeff's retirement funds. Despite the district court granting the QDRO, Oleson advised Jeff to withdraw the funds, leading to further legal complications, including Jeff's contempt of court for failing to file an accounting of the funds.The Professional Conduct Board Hearing Committee found that Oleson violated Rules 1.7(a)(2), 3.4(c), and 8.4(d), recommending a public reprimand. However, they did not find clear and convincing evidence for violations of Rules 1.2(a), 1.3, 1.4, 4.1, and 8.4(c). Both the Idaho State Bar (ISB) and Oleson appealed the Committee's decision.The Idaho Supreme Court reviewed the case, affirming the Committee's findings of violations of Rules 1.7(a)(2), 3.4(c), and 8.4(d), but reversing the findings regarding Rules 1.2(a), 1.4, 4.1, and 8.4(c), determining that Oleson did violate these rules. The Court found that Oleson failed to consult with Jeff about the consequences of not filing the accounting, made misleading statements to a third party, and had a conflict of interest. The Court also concluded that Oleson’s actions were prejudicial to the administration of justice.Given the severity of the violations, Oleson's history of misconduct, and the absence of mitigating factors, the Idaho Supreme Court vacated the public reprimand and disbarred Oleson from practicing law in Idaho, effective immediately. Oleson is barred from applying for readmission for five years. His request for attorney fees was denied. View "ISB v. Oleson" on Justia Law

Crystal Lorene Limary and Shaun Patrick McLean were married in 2015 and had one child together. They moved into a house purchased by Shaun's parents in 2016, making monthly payments to them until 2019 when Shaun took out a mortgage to buy the house, using a $70,000 gift of equity from his parents as a down payment. Crystal filed for divorce, and the couple disagreed on the classification of the house, the $70,000 gift, a camper trailer, and the parenting schedule for their daughter.The magistrate court held a four-day trial, during which it extensively questioned the parties and witnesses. The court determined that the house and camper trailer were community property and that the $70,000 was a gift to both Crystal and Shaun. Shaun appealed, arguing that the magistrate court's conduct at trial was inappropriate and biased. The district court agreed, finding that the magistrate court's active participation obscured the reliability of its decision. The district court vacated the judgment and remanded the case with instructions to reassign it to a different judge.The Supreme Court of Idaho reviewed the district court's decision and affirmed it. The court held that the magistrate court abused its discretion by extensively questioning the parties and witnesses, which affected Shaun's right to a fair trial. The court concluded that the district court did not err in vacating the judgment and remanding the case for a new trial with a different magistrate judge. Neither party was awarded attorney fees on appeal, but costs were awarded to Shaun as the prevailing party. View "Limary v. McLean" on Justia Law

Julene and William Dodd sued their attorney, Rory Jones, for legal malpractice after he missed the statute of limitations deadline for filing their medical malpractice lawsuit. The Dodds needed to prove that their original medical malpractice case had merit and that they would have won if Jones had filed on time. However, the district court struck the testimony of the Dodds’ experts, which was key to establishing the viability of their medical malpractice claim. The court found that the disclosures were untimely and that the experts failed to properly establish knowledge of the local standard of care, a foundational requirement of Idaho law. As a result, the Dodds’ legal malpractice claim was dismissed, and the court granted summary judgment in favor of Jones.The Dodds appealed to the Supreme Court of Idaho, arguing that the district court erred by ruling that Jones was not judicially estopped from arguing that no medical malpractice occurred and by excluding their expert testimony. They also raised claims of judicial bias. The Supreme Court of Idaho found that Jones could not be judicially estopped from claiming that no medical malpractice occurred because he was not a party in the original medical malpractice case but was representing the Dodds. The court also upheld the district court’s exclusion of the Dodds’ expert testimony, finding that the experts did not demonstrate familiarity with the local standard of care in Nampa, Idaho, at the time of the alleged malpractice.The Supreme Court of Idaho affirmed the district court’s judgment, concluding that the Dodds failed to establish an essential element of their legal malpractice case. The court also awarded attorney fees to Jones under Idaho Appellate Rule 11.2, finding that the appeal was pursued frivolously and without foundation, and sanctioned the Dodds’ attorney, Angelo Rosa, for his conduct during the appeal. View "Dodd v. Jones" on Justia Law

BrunoBuilt, Inc. contracted with William and Amy Dempsey to build a home in the Boise Foothills. With the help of insurance agent Randy L. Richardson, BrunoBuilt purchased a Tailored Protection Policy (TPP) from Auto-Owners Insurance Company, which included "Builders' Risk" coverage. The policy excluded damage caused by landslides. In 2016, the Dempsey project was not included in the TPP renewal, allegedly due to Richardson's negligence. Shortly after, the nearly completed Dempsey home was damaged by a landslide. BrunoBuilt sued Richardson and Auto-Owners, claiming Richardson negligently failed to advise about landslide coverage and failed to renew the Dempsey project. BrunoBuilt also claimed Auto-Owners was vicariously liable for Richardson's negligence.The District Court of the Fourth Judicial District of Idaho granted summary judgment in favor of Auto-Owners, concluding Richardson was not acting as Auto-Owners' agent and that the policy excluded landslide damage. BrunoBuilt appealed.The Supreme Court of Idaho reviewed the case and found that the district court erred in granting summary judgment. The court held that the 2015 policy, which excluded only naturally occurring landslides, might still apply because Auto-Owners did not provide the required notice of the reduction in coverage in the 2016 policy, which excluded both naturally occurring and human-caused landslides. The court also determined that Auto-Owners bore the burden of proving the applicability of the landslide exclusion. The case was reversed and remanded for further proceedings to determine whether the 2015 policy's coverage continued and whether Richardson was acting as Auto-Owners' agent when he failed to renew the policy. The court did not award attorney fees to either party. View "BrunoBuilt, Inc. v. Auto-Owners Insurance Company" on Justia Law

In 2018, Brian Hollis pleaded guilty to one count of lewd conduct with a minor under sixteen and four counts of sexual exploitation of a child. He also admitted to being a repeat sexual offender, which mandates a fifteen-year minimum term of confinement. The district court imposed an indeterminate life sentence with twenty-five years determinate on the lewd conduct charge and concurrent determinate sentences of fifteen years for each of the sexual exploitation charges. Hollis appealed his conviction and sentence, but the Idaho Court of Appeals affirmed them.Hollis then filed a pro se petition for post-conviction relief, alleging ineffective assistance of trial counsel. The district court appointed the Kootenai County Public Defender to represent him. However, Hollis' conflict counsel filed a motion to withdraw, stating that he was no longer able to "ethically or effectively represent" Hollis due to statements made by the district court judge against conflict counsel in a similar post-conviction case. The district court denied the motion to withdraw and the motion to continue the summary disposition hearing. The district court subsequently granted the State’s motion for summary disposition, holding that Hollis had not supported any of his claims with any admissible evidence.The Supreme Court of the State of Idaho vacated the judgment of the district court, reversed the decisions on the motion to continue and motion to withdraw, vacated the decision granting summary disposition to the State, and remanded for further proceedings. The court held that the district court abused its discretion in denying the motion to withdraw and the motion to continue. The court also ordered the assignment of a new district court judge on remand. View "Hollis v. State" on Justia Law

The case involves an individual, referred to as "John Doe," who repeatedly applied for admission to the Idaho State Bar. Doe's applications were denied due to concerns about his character and fitness, including his honesty, judgment, and respect for the rights of others. Doe challenged these denials, arguing that his federal lawsuits against the Idaho State Bar were a necessary defense of his rights and that his conduct was protected by the First Amendment.The Idaho State Bar filed a petition with the Idaho Supreme Court, seeking permission to reject Doe's third application and to prohibit him from filing future applications for a specified period. Doe cross-petitioned, seeking immediate admission to the Idaho State Bar.The Idaho Supreme Court denied Doe's cross-petition, finding that he had not demonstrated that he met the essential eligibility requirements to practice law. The court granted the Idaho State Bar's petition in part, allowing it to reject Doe's third application and prohibiting Doe from filing a new application for two years. The court found that Doe had not shown a significant change in his circumstances that would render him eligible to practice law. The court also ordered the Idaho State Bar to refund Doe's application fee. View "ISB v. John Doe" on Justia Law

In this case, the Supreme Court of the State of Idaho upheld a lower court's summary judgment in favor of the defendants, George and Jesse’s Les Schwab Tire Store, Inc., and two of its owners, Bruce and Richard Byram. The plaintiff, Adam Davis, had been employed as an assistant manager at Les Schwab from April 2016 till June 2019. In March 2019, there was a shortage in the cash deposits and surveillance footage showed Davis bending down out of camera view in the area where the cash deposits were kept while he was alone in the store. This led to Davis being arrested and charged with grand theft, and his employment was terminated. Although the charges against Davis were later dropped, he sued the defendants for breach of his employment contract, false arrest, defamation per se, and for knowingly giving a false report to the police. The district court granted the defendants’ motion for summary judgment on all of Davis’s claims. The Supreme Court affirmed the lower court's decision, finding no genuine issue of material fact that could support Davis’s claims. The court found that Davis was an at-will employee who could be terminated without cause and that there was no evidence to show that the defendants had acted with malice. The court also found that the plaintiff's attorney had violated Rule 11.2 by submitting arguments that were not well grounded in fact, and awarded a portion of the defendants' attorney fees to be paid by the plaintiff's counsel. View "Davis v. George and Jesse's Les Schwab Tire Store, Inc." on Justia Law