Justia Idaho Supreme Court Opinion Summaries

In 2006, Richard Myers owned the property at issue in this case. At the time, the property was subject to a deed of trust in favor of First Horizon Home Loans. Myers enlisted Michael Horn and his company, Frontier Development Group (FDG) to build a residence on the property, which First Horizon financed. However, in April of 2007, Myers filed for bankruptcy, and First Horizon rescinded the construction loan and instructed FDG to halt construction when the project was only fifty percent complete. The structure was left exposed to the elements for fourteen months. Following Myers' bankruptcy, foreclosure proceedings were initiated, and Myers hired Kathleen Horn (Michael Horn's wife), of Windermere Real Estate/Teton Valley to list the property for sale. The Caravellas, who were Ohio residents, looking for property in the Teton Valley, contacted their real estate agent who put them in touch with Kathleen Horn who provided them with information on the stalled Myers project. Kathleen Horn eventually put the Caravellas in touch with Michael Horn. The Caravellas traveled to Idaho, met with Kathleen Horn, and spent two days inspecting the property. The Caravellas testified that Kathleen Horn minimized issues with the house, telling them that it was "in good shape,""structurally sound,"and a "great house."The Caravellas chose not to have a professional inspection performed and closed on May 5, 2008. After closing, the Caravellas and Michael Horn agreed that Horn would complete construction on the house in accordance with Myers' original plans. In reaching this agreement, the Caravellas testified that they believed they were dealing with Horn as an individual. The total contract price for the first phase of work that the Caravellas authorized was $88,500. However, the Caravellas paid FDG $138,097.24 for the first phase before refusing to pay any more. Much of the money that the Caravellas paid to FDG was for unauthorized work or work that was completed in a nonconforming or substandard manner. The Caravellas hired a second builder to complete the first phase and to remedy the substandard work. FDG initiated this action by filing a complaint to foreclose on a lien for construction services and building materials provided to, but not paid for by, the Caravellas. The Caravellas filed an amended counterclaim alleging that FDG and Horn: (1) breached the parties' contract; (2) breached the duty of good faith and fair dealing; (3) violated the Idaho Consumer Protection Act; (4) breached the implied warranty of habitability; (5) committed slander of title; (6) committed fraud and misrepresentation; (7) engaged in a civil conspiracy; and (8) acted negligently. The district court held that FDG's lien was defective and dismissed it. The district court also held that FDG breached its contract with the Caravellas by: (1) failing to complete agreed upon work in conformity with the plans and in a workmanlike manner; (2) charging the Caravellas for unauthorized and defective work; and (3) substantially overbilling the Caravellas for work and materials that were not authorized and never provided. As to the Caravellas' fraud counterclaim, the district court concluded that the Caravellas failed to establish all nine elements of fraud and dismissed the claim. The district court also concluded that Horn was not personally liable. The district court awarded the Caravellas $113,775.45 in attorney fees, $5,484.83 in costs as a matter of right, and $200.00 in discretionary costs. The Caravellas timely appealed. Upon review, the Supreme Court concluded the district court erred by applying the incorrect evidentiary standard to the Caravellas' fraud counterclaim, but that error was harmless. The Court affirmed that portion of the district court's judgment dismissing the Caravellas' fraud claim, and reversed that portion of the judgment dismissing the Caravellas' claims against Michael Horn personally. In all other respects, the Supreme Court affirmed the district court's decision. View "Frontier Development Grp v. Caravella" on Justia Law

Claimant DeAnne Muchow began working for Varsity Contractors, Inc in 2011 as a human resources assistant. During her employment, the claimant had an ongoing conflict with her supervisor and had lodged several complaints about her supervisor with the director of the department. In an effort to resolve the conflict, the director held a meeting with claimant and her supervisor. The claimant and her supervisor both stated that they had documentation outlining their complaints. The director told them to get their documentation and bring it back to his office. The claimant asked if they could do so the following day because she wanted time to look over her documentation, but the director denied that request because he was leaving the next day on a business trip. He did give the claimant a few minutes to look over her documentation. She returned to her desk and after a few minutes printed her documentation. She took the documents and walked toward the director, who was standing outside his office. The claimant waved the documents in the air, told the director she had them and was going to shred them, and walked past him toward the shredder. He told her not to shred them, but she continued to the shredder and shredded them. The director then discharged her for insubordination. The claimant applied for unemployment benefits, which were initially denied. She appealed, and an appeals examiner reversed the ruling that the claimant was not entitled to unemployment benefits. He held that as a matter of law there was no insubordination. The basis of his ruling was that the director’s order not to shred the documents was not a directive that the director was authorized to give and entitled to have obeyed, because the documents belonged to the claimant and contained her personal notations about issues and problems she was having with a coworker. The employer then appealed to the Industrial Commission. The commission adopted the findings of fact made by the appeals examiner. However, the commission disagreed with the conclusions of law made by the appeals examiner. The commission concluded that her conduct constituted employment-related misconduct, and it reversed the decision of the appeals examiner and held that the claimant was not eligible for unemployment benefits. Upon review of the matter, the Supreme Court found no reversible error in the Commission's decision and affirmed. View "Muchow v. Varsity Contractors, Inc." on Justia Law

In 2009, Joseph Pierce filed this action 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 defendants represented that they could protect Pierce from losing his equity in real property that was facing foreclosure. He 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 defendants, 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. Only McMullen appeared in the action, but he did not deny the allegations of wrongdoing in the complaint. When McMullen failed to appear at the trial, the district court ordered that he was in default, that Pierce prevailed on his complaint, and that he could present evidence of his damages. Pierce did so, but the district court later dismissed the action on the ground that Mr. Pierce had failed to prove liability. Finding that decision was made in error, the Supreme Court reversed the district court's decision and remanded the case for further proceedings. View "Pierce v. McMullen" on Justia Law

Camp Easton Forever, Inc., (“CEF”) and Daniel and Matthew Edwards appealed the district court’s grant of summary judgment to Inland Northwest Council Endowment Properties, LLC, and Inland Northwest Council of the Boy Scouts of America (collectively “INWC”). CEF and the Edwardses filed an action to declare the parties’ rights to property INWC owned on Lake Coeur d’Alene that had been used as a Boy Scout camp since 1929. The district court held CEF and the Edwardses lacked standing because CEF lacked a legally recognizable interest and the Edwardses were not certified as class representatives. The district court also held no trust existed because all prior agreements merged into an unambiguous deed. Upon review, the Supreme Court affirmed the district court’s grant of summary judgment to INWC on grounds that the deed was an unambiguous fee simple transfer. View "Camp Easton Forever, Inc v. Inland NW Council Boy Scouts of Amierica" on Justia Law

This case arose from Agrisource’s breach of contract claim against Robert Johnson (Johnson). Johnson argued that he was not liable on the contract because he was an agent for a disclosed principal named “Johnson Grain Inc.” which was owned by Neil Brown. Agrisource leased a grain elevator in Ririe from Johnson’s father, Wydell. For several years prior to 2006, Johnson was Agrisource’s employee and managed the elevator. Agrisource terminated its elevator lease in summer 2006, and Johnson was then unemployed. Brown purchased the grain elevator in August 2006 from Wydell. Brown was Johnson Grain Inc.’s majority shareholder from August 2006 through December 2007. Johnson and Brown opened a business checking account under Johnson Grain Inc.’s name with both men as signatories. Johnson entered into two contracts to sell durum wheat to Agrisource. Agrisource did not receive 15,527.87 bushels of wheat promised by Johnson Grain. Agrisource contacted both Johnson and Brown for two years about the undelivered wheat. Neither party delivered the wheat, so in 2009 Agrisource purchased wheat elsewhere. This resulted in $51,241.97 in damages. In 2010, Agrisource filed a claim alleging breach of the 2007 contract against Brown, Brown’s wife, and Neil Brown, Inc., Johnson, Johnson’s wife, and Johnson’s corporation as defendants. Agrisource alleged that Johnson was an individual doing business as Johnson Grain when he entered into the contract. Johnson appealed the district court’s grant of summary judgment in favor of Agrisource, Inc. The district court held that there was no genuine disputed issue of material fact as to Johnson’s lack of disclosure of his agency and alleged principal. Johnson argued on appeal that Agrisource had notice that Johnson was the principal’s agent because Agrisource should have known Johnson was an agent and disputed issues of fact existed. Upon review, the Supreme Court affirmed the district court’s grant of summary judgment to Agrisource and the denial of Johnson’s third motion to reconsider. However, the Court vacated the district court’s denial of Johnson’s request for I.R.C.P. 60(b) relief and remanded for the district court to analyze Johnson’s third affidavit in the context of Johnson’s request for I.R.C.P. 60(b) relief. View "Agrisource, Inc v. Johnson" on Justia Law

Saint Alphonsus Diversified Care, Inc.formed a general partnership named MRI Associates. The parties executed a written partnership agreement for the purpose acquiring and operating diagnostic and therapeutic devices, equipment, and accessories, beginning with a magnetic resonance imaging (MRI) scanner. MRI Associates formed two limited partnerships: MRI Limited Partnership (which owned and operated an MRI scanner located on Saint Alphonsus' campus) (“MRI Center”); and MRI Mobile Limited Partnership (which owned and operated mobile MRI scanners) (“MRI Mobile”). For decades, a group of radiologists known as Gem State Radiologists had interpreted medical images pursuant to a contract that gave them the exclusive right to serve the radiological needs of patients of Saint Alphonsus. After the formation of MRI Associates, they interpreted MRI scans performed at MRI Center. In 1998, the Radiologists began planning to construct and operate an outpatient facility in Boise that was located away from the hospital. The proposed facility would provide a full range of medical imaging services, including MRI imaging. There were negotiations among the Radiologists, Saint Alphonsus, and MRI Associates to have one medical imaging entity, but those negotiations were unsuccessful. There was evidence that Saint Alphonsus was negotiating against MRI Associates with the Radiologists. In 1999, the Radiologists formed Intermountain Medical Imaging, LLC, (“IMI”), and on September 1, 1999, they opened their facility. Saint Alphonsus began negotiating with the Radiologists to partner with them in the imaging center. In 2001, Saint Alphonsus became a member of IMI. IMI opened another facility in Meridian. In 2004, Saint Alphonsus gave notice to MRI Associates that it would dissociate from the partnership. Under the partnership agreement, upon dissociation Saint Alphonsus could not compete with MRI Associates for a period of one year. Saint Alphonsus then filed this action seeking to recover the value of its partnership interest from MRI Associates, and MRI Associates responded by filing a multi-count counterclaim and claims against third parties. The third-party claims were ultimately dismissed. The jury found Saint Alphonsus liable on all causes of action, and MRI Associates was awarded a judgment in the sum of $36.3 million. That judgment was vacated on appeal, and the case was remanded for further proceedings. The case was again tried to a jury. The jury found in favor of the MRI Entities on each of the claims. Under the judgment entered by the district court, the awards under each claim for relief were in the alternative. The highest award to each of the MRI Entities was: $3,906,338 to MRI Associates; $25,828,208 to MRI Center; and $22,349,967 to MRI Mobile, which totaled $52,084,513. On its complaint, Saint Alphonsus was awarded $4.6 million against MRI Associates. Saint Alphonsus appealed, and the MRI Entities cross-appealed. Finding no reversible error in the district court's decision, the Supreme Court affirmed the district court. View "St. Alphonsus Diversified Care v. MRI Associates, LLP" on Justia Law

This case arose out of a contract dispute when Robert Coleman, Profits Plus Capital Management, LLC (“Profits Plus”), and Dollars and Sense Growth Fund Limited Partnership (“Dollars and Sense”) filed a claim for declaratory judgment against Jeffrey Podesta and Street Search, LLC. Coleman, Profits Plus, and Dollars and Sense sought a judgment declaring that they did not have a contract with either Podesta or Street Search. Podesta and Street Search then counterclaimed seeking damages for breach of contract, fraud, constructive fraud, and breach of fiduciary duties. Ultimately, only Podesta and Street Search’s breach of contract and breach of fiduciary duty claims went to the jury, which decided those claims in favor of Coleman, Profits Plus, and Dollars and Sense. Podesta and Street Search now appeal a number of the district court’s decisions made before, during, and after trial. We affirm the district court’s decisions. View "Profits Plus Capital Mgmt. v. Podesta" on Justia Law

A jury returned a verdict in favor of Portneuf Medical Center on plaintiff-appellee Mark Van's complaint that he was fired from his job there in violation of the Idaho "Whistleblower's Act" (the Idaho Protection of Public Employees Act). The jury determined that Van engaged in activity protected by the Act, but that the termination of his employment was not the result of his protected activity. On appeal, Van raised multiple issues of alleged error at trial. After careful review of them all, the Supreme Court concluded there was no reversible error. As such, the district court was affirmed. View "Van v. Portneuf Medical Center" on Justia Law

Defendant Charlynda Goggin was convicted for conspiracy to manufacture, deliver or possess with intent to deliver a controlled substance; conspiracy to deliver or possess with intent to deliver drug paraphernalia; delivery of a controlled substance; and delivery of drug paraphernalia. After the jury returned a guilty verdict, Goggin filed a motion to acquit and a motion for a new trial. The district court denied the motion to acquit but granted the motion for a new trial on the conspiracy charges, holding that the jury should have been instructed that mistake of law is a defense to conspiracy. Upon review, the Supreme Court affirmed the district court’s decision to deny Goggin’s motion to acquit and to deny Goggin’s motion for a new trial on the delivery charges. The Court reversed the district court’s decision to grant Goggin a new trial on the conspiracy charges. View "Idaho v. Goggin" on Justia Law

Defendant Matthew Taylor was convicted for conspiracy to manufacture, deliver or possess with intent to deliver a controlled substance; conspiracy to deliver or possess with intent to deliver drug paraphernalia; and delivery of a controlled substance. After the jury returned a guilty verdict, Taylor filed a motion to acquit and a motion for a new trial. The district court denied the motion to acquit, and for a new trial on the delivery charge, but granted the motion for a new trial on the conspiracy charges, holding that the jury should have been instructed that mistake of law is a defense to conspiracy. Upon review, the Supreme Court affirmed the district court’s decision to deny Taylor’s motion to acquit and to deny Taylor’s motion for a new trial on the delivery charge, and reversed the district court’s decision to grant Taylor a new trial on the conspiracy charges. View "Idaho v. Taylor" on Justia Law