Justia Idaho Supreme Court Opinion Summaries

Property at issue in this case was a five-sided parcel roughly the shape of a rectangle. North of the property is a paved road that curves northwest. On the east side, a north-south right-of-way that provided access from the paved road to a lot adjoining the property to the south. In 2006, Defendants-Respondents Cornelius and Patricia Mercea purchased the property; in 2007, Plaintiff-Appellant Diana James purchased the property from the Merceas. Prior to the purchase, she did not have any conversations with the Merceas, nor did they make any representations regarding the property except those contained in the property disclosure form required by the Idaho Property Condition Disclosure Act. Plaintiff obtained title insurance from First American Title Insurance Company, and First American Title Company, Inc., was the closing agent. In 2009, Plaintiff filed this action against the Merceas, the prior owners of the parcel, and First American Title Insurance Company, alleging that when she purchased the property, she believed that the pavement going from the paved street to her garage was entirely her private driveway and that she did not know that most of that pavement was on a public right-of-way. She also alleged that she believed a portion of an adjoining lot was also part of the property she purchased. The trial court granted summary judgment in favor of the Merceas, finding that they did not violate the Idaho Property Condition Disclosure Act or commit fraud by failing to disclose that the public road alongside the property was not a private driveway on the property. The Supreme Court affirmed the trial court's judgment finding Plaintiff failed to meet her burden of presenting sufficient evidence to maintain her claims. View "James v. Mercea" on Justia Law

Defendant-Respondent High Mark Development, LLC owned a commercial building located in the City of Ammon. In 2006, it had leased a portion of the building to The Children's Center, Inc., for a period of ten years. In 2007, High Mark listed the real property for sale through its realtor. Plaintiff-Appellant Thomas O'Shea, a resident of California, learned of the property through a realtor friend in Boise. Appellant and his wife were trustees of the "Thomas and Anne O'Shea Trust u/d/t Dated November 2, 1998," which they had formed to protect their assets and provide for their children. They decided to purchase the real property. The Trust entered into a real estate contract agreeing to purchase the property from Defendant High Mark for $3.7 million. The sale closed late 2007. The Children's Center made no payments to Plaintiffs after they acquired the property. Shortly thereafter, the Children's Center vacated the property, and went out of business. Plaintiffs filed suit against High Mark and two of its principals, Gordon, Benjamin and Jared Arave arguing Defendants had induced them to acquire the property by providing false information that the Children's Center was current in its payments of rent and/or concealing or failing to disclose that the Center had failed to pay all rent due under the lease. Plaintiffs alleged claims for breach of contract and fraud by misrepresentation and nondisclosure against all of the Defendants, but the issues were narrowed after cross motions for summary judgment. The case was tried to a jury on the issues of: High Mark's breach of contract; High Mark's alleged fraud by misrepresentation and nondisclosure; Gordon Arave's alleged fraud by misrepresentation and nondisclosure; and Benjamin Arave's alleged fraud by nondisclosure. The jury returned verdicts in favor of all of those Defendants. The Plaintiffs filed a motion for a judgment notwithstanding the verdict on the issue of liability or, in the alternative, for a new trial, which the district court denied. The Plaintiffs then timely appealed. Upon review, the Supreme Court concluded that the jury could reasonably have determined that the Plaintiffs failed to prove that they were damaged by the breach and that they failed to prove that the breach of contract caused any damages. In addition, the jury could have found that the breach did not cause any damages because the Plaintiffs did not have the right to terminate the contract for the misrepresentation in an estoppel certificate. Therefore, the district court did not err in denying the motion for a judgment notwithstanding the verdict on the breach of contract claim. View "O’Shea v. High Mark Development, LLC" on Justia Law

At issue in this case was a district court's grant of a motion for voluntary dismissal of a suit filed by Fern Peterson against Cecil and Yu Wen Davis, Kevin and Sherri Murray, David Lawrence and Private Wilderness, LLC (collectively, Private Wilderness). The issues arose from Peterson's attempt to sell property to the Davises, Murray and Lawrence. Private Wilderness asserted an easement over the property. Ultimately the case ended with the dismissal of a third-party complaint filed by Private Wilderness against Robert and Nancy Peterson (the Petersons). In resolving the appeal, the Supreme Court addressed issues raised by Private Wilderness concerning whether the district court erred when it concluded there was no prevailing party when it granted the voluntary dismissal. The Court also addressed the Petersons' cross-appeal, in which they argued that the district court erred in denying their motion for reconsideration of their I.R.C.P. 12(b)(6) and 12(c) motion to dismiss on the basis that it was moot, and by not addressing their pending summary judgment motion at the time of dismissal. Upon review, the Supreme Court vacated in part and remanded, upholding the district court's discretion concluding no prevailing party, but found the court erred by denying the motion for reconsideration. View "Peterson v. Private Wilderness, LLC." on Justia Law

This appeal arose from a decade-long fight over title to a piece of real property. Juan Cuevas allegedly agreed to sell the property to Defendant-Counterclaimant-Appellant Bernardino Barraza in 2001. However, after Barraza failed to pay the purchase price, Juan filed a quiet title action against Barraza. Barraza defaulted. While Barraza was seeking to set aside the default, Juan quitclaimed the property to his relative, Plaintiff-Counterdefendant-Respondent Wilfrido Cuevas. Meanwhile, Barraza was successful in setting aside the default on appeal. On remand, Juan defaulted and the district court quieted title in Barraza. Wilfrido then filed the present quiet title action against Barraza, in which the district court found the default judgment against Juan void and quieted title in Wilfrido. Upon review, the Supreme Court held that the default judgment against Juan is void, but vacated the summary judgment quieting title in Wilfrido as against Barraza. View "Cuevas v. Barraza" on Justia Law

Real estate purchasers Thomas and Vicki Stevenson appealed the district court's grant of summary judgment that dismissed their unjust enrichment claim against Windermere Capital Group (Windermere), broker to seller 323 Jefferson, LLC (Jefferson). The Stevensons desired to purchase a condominium from Jefferson, and the parties executed a Real Estate Purchase and Sale Agreement (REPSA) for that purpose. Pursuant to the REPSA, the Stevensons deposited $38,000 earnest money with Jefferson’s broker, Windermere. Upon the Stevensons' written authorization, Windermere transferred the funds to Jefferson. Jefferson then paid Windermere a partial commission pursuant to an Exclusive Seller Representation Agreement which obligated Jefferson to pay Windermere a commission whenever a ready, willing, and able purchaser was procured. Jefferson decided not to sell the condominium to the Stevensons and notified them that it was terminating the REPSA. The REPSA specified remedies upon default by either of the parties to the agreement. In the event that Jefferson failed to comply with any term of the agreement, the Stevensons were entitled to their deposit plus interest. Despite this unambiguous provision, Jefferson failed to return the deposit. The Stevensons filed suit against both Jefferson and Windermere. Their complaint alleged that Jefferson breached the REPSA and also advanced a claim of unjust enrichment against both Jefferson and Windermere. The Stevensons also asserted that the REPSA was unenforceable because it did not contain an adequate legal description. Jefferson settled with the Stevensons, agreeing to refund the Stevensons' earnest money, less the commission paid to Windermere. Windermere answered and cross-claimed against Jefferson, alleging two counts of breach of contract, two counts of unjust enrichment and one count of fraud. Windermere later moved for summary judgment as to the Stevensons’ unjust enrichment claim. Upon review, the Supreme Court held that the district court properly exercised its discretion and affirmed the award of summary judgment to Windmere. View "Stevenson v. Windermere Real Estate" on Justia Law

In April and June of 2008, Best of the Best Auto Sales, Inc. purchased seven vehicles from Dealers Auto Auction of Idaho and Brasher's Idaho Auto Auction with checks that were returned for insufficient funds. As a result, Dealers and Brasher refused to provide Best of the Best with the titles to the vehicles. Best of the Best then sold the vehicles to Idaho consumers without providing them with titles. Dealers and Brasher filed claims with CNA Surety d/b/a Western Surety Company which acted as a surety for a "$20,000 Vehicle/Vessel Dealer Bond." Best of the Best was the principal. Upon Best of the Best's failure to provide evidence or defenses for Dealers' and Brasher's claims, Western Surety alleged that it lawfully settled those claims in good faith upon the condition that the consumers received their titles, even though they were not based on final judgments. Plaintiff Nick Hestead submitted his claim, which was based on a final judgment. Plaintiff's claim involved fraud and fraudulent representation concerning a separate vehicle that he purchased from Best of the Best that was previously branded a lemon in California. Western Surety responded by asserting that the Dealer Bond was exhausted. Plaintiff contended that the plain meaning of I.C. 49-1610(4) provides that his claim should be given priority because it was submitted thirty days after a final judgment was entered, unlike Dealers' and Brasher's claims. Western Surety asserted that the plain meaning of I.C. 41-1839(3) permits sureties to settle Dealer Bond claims in good faith. Upon review, the Supreme Court found that the payments on the surety bond were lawfully made in good faith pursuant to I.C. 49-1610(1) and I.C. 41-1839(3) because Dealers' and Brasher's claims were undisputed and supported by competent evidence. View "Hestead v. CNA Supply dba Western Surety Co." on Justia Law

Appellant John Stem was helping to load a forklift at his place of work when another employee backed the forklift over a water meter cover which broke under the weight of the forklift. The forklift toppled and pinned Appellant to the ground, resulting in severe injuries and the amputation of his right leg. He sued Respondent Wesley Prouty, the owner and landlord of the property where the accident occurred, for negligence under a theory of premises liability for failing to keep the premises safe. Appellant alleged that the water meter cover was a light duty cover and was inadequate to support heavy duty vehicles such as forklifts. He later amended his complaint to include a negligence-per-se claim against Respondent for failing to obtain a building permit in violation of city and state codes, which he argued would have likely led to the discovery of the defective water meter cover. The district court granted Respondent's Motion for Partial Summary Judgment, dismissing the negligence claim based on premises liability. Respondent filed a second Motion for Summary Judgment on the negligence-per-se claim which was originally denied by the court. Then, upon Motion for Reconsideration, the court granted Respondent summary judgment. Appellant appealed the judgments in favor of Respondent. Upon review, the Supreme Court found no genuine issues of material facts. Accordingly, the district court did not err in granting summary judgment in favor of Respondent. View "Stem v. Prouty" on Justia Law

Appellants Lynn and Jana Nelson argued that they owned a strip of land even though the county records showed respondents Jebb and Brandie Huskinson to be the owners of record. The Nelsons contended that the disputed land belonged to them because of a "boundary by agreement." The district court granted summary judgment to the Huskinsons. Upon review of the trial court record, the Supreme Court vacated the district court's judgment and remanded the case, finding that questions of material facts still existed from review of the evidence presented at trial, and that summary judgment was not appropriate. The case was remanded for further proceedings. View "Huskinson v. Nelson" on Justia Law

This case concerned a commercial lease between Defendants-Appellants-Cross-Appellants Michael Storms and Kathy Burggraf and the Plaitniff-Respondent-Cross-Appellant Watkins Company, LLC’s predecessor in interest, Watkins and Watkins for a restaurant and microbrewery in Idaho Falls, Idaho. Watkins filed a lawsuit seeking to enforce the lease after Storms and Burggraf failed to timely pay the rent. The issues were tried to the district court, which found that Storms and Burggraf had materially breached the lease and that Watkins could regain possession of the property. The district court also found that Storms and Burggraf had been unjustly enriched by failing to pay rent for additional storage space. Further, the district court found that the lease's provision for accelerated rent was a liquidated damages clause and found it be unconscionable. Storms and Burggraf appealed the district court’s decision, arguing that an accord and satisfaction had been reached between the parties and that the court erred in its finding of the rent for the upstairs storage area above the restaurant. Watkins argued on cross-appeal that the district court based its finding regarding the accelerated rent on insufficient evidence. Because of an error in the district court's finding regarding the upstairs storage area, the Supreme Court vacated that part of the court's order but upheld the remaining issues. View "The Watkins Co. LLC v. Storms" on Justia Law

Plaintiff-Appellant Thomas Weisel owned two adjacent parcels within the Beaver Springs Subdivision in Ketchum. He sought to unify and develop the lots. At some point, his plan indicated that he intended that construction would take place in a "setback zone" that abutted the lots' shared border. Plaintiff and the Beaver Springs Owners Association executed an agreement whereby Beaver Springs approved the unification and development plan. Construction on the property was completed in 1985, all structures were located on what used to be "lot 14" and the former setback zone and "lot 13" remained vacant. In 2009, Plaintiff filed suit to rescind or reform the agreement. The district court granted Beaver Springs' motion for summary judgment, and Plaintiff appealed. Upon review, the Supreme Court concluded that "[i]n essence, Plaintiff asked the Court to reform an agreement for which the parties freely bargained." As such, the Court found that the district court properly granted summary judgment in favor of Beaver Springs. View "Weisel v. Beaver Springs Owners Association, Inc." on Justia Law