Blaine County Title Associates v. One Hundred Building Corp.

66 P.3d 221, 138 Idaho 517
CourtIdaho Supreme Court
DecidedSeptember 13, 2002
Docket27202
StatusPublished
Cited by6 cases

This text of 66 P.3d 221 (Blaine County Title Associates v. One Hundred Building Corp.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blaine County Title Associates v. One Hundred Building Corp., 66 P.3d 221, 138 Idaho 517 (Idaho 2002).

Opinions

TROUT, Chief Justice.

This case involves a dispute between two creditors claiming an interest in the proceeds from the sale of a hotel owned by One Hundred Building Corporation (“the Corporation”). JSGACG Trust (“the Trust”) appeals the district judge’s decision awarding $135,000 in interpleaded funds to Grubb and Ellis Commercial Real Estate Services and Colliers Paragon, Inc. (“the Brokers”).

I.

FACTUAL AND PROCEDURAL HISTORY

The Corporation is a Maryland corporation, which owned and operated the Pinnacle Inn located in Ketchum, Idaho. James S. Gibson is the president of the Corporation and his wife, Andrea, is the secretary.

The Pinnacle Inn was not a successful business venture, losing an average of $10,000 a month over a period of seven or eight years. In order to keep the Pinnacle Inn running, the Trust supported the Corporation by advancing money for payment of obligations and operating deficiencies of the business. The acronym JSGACG stands for James S. Gibson and his wife Andrea C. Gibson, the same people who own the Corporation. The Trust is a family trust created in 1981, naming James Gibson as the primary beneficiary, the Gibson children as secondary beneficiaries, and Andrea Gibson as the trustee.

Even with the funds from the Trust, the Corporation faced foreclosure from its lien holder, Bank of America. The Corporation also faced a lawsuit by Nick and Kathleen Gyurkey who were the former owners of the Pinnacle Inn.1 Facing foreclosure and a lawsuit, the Corporation entered into an Exclusive Authorization of Sale with the Brokers in an attempt to sell the Pinnacle Inn.

On February 10, 1997, after failed attempts to find a buyer for the Pinnacle Inn, the Corporation filed for Chapter 11 Bankruptcy. Due to an administrative error, the bankruptcy proceeding was dismissed, but was reinstated once the error was diseover[519]*519ed. During this time, James Gibson, acting in his capacity as the Corporation’s president, executed a promissory note in the amount of $902,782.66 and an accompanying deed of trust to Pinnacle Inn in favor of the Trust. It was also during this period that the Gyurkeys obtained a judgment in state court ordering the Gibsons to execute the prior settlement documents, which the parties had agreed to. After the administrative error was discovered, the bankruptcy judge determined that the transactions made during the dismissal period were void as violating the bankruptcy stay under 11 U.S.C. § 105(a).

The Corporation’s bankruptcy was subsequently dismissed for a second time, but this time on the merits. After the second bankruptcy dismissal, Bank of America recommenced foreclosure against the Pinnacle Inn, scheduling the sale to take place December 2,1997. Fearing that Bank of America’s sale of the Pinnacle Inn would terminate his interest and the interest of the Trust, James Gibson continued his search for a buyer. He found Eagle Crest on his own as a prospective buyer for the Pinnacle Inn.

Two conditions were required in order for the Eagle Crest transaction to be successful. First, the sale of the Pinnacle Inn was required to be finalized prior to the Bank of America foreclosure sale. Second, the Trust’s deed of trust had to be reconveyed to the Corporation, as Blaine County Title, the escrow agent handling the closing for the Eagle Crest transaction, refused to close the sale of the Pinnacle Inn unless there was clear title. To facilitate the transaction, Andrea Gibson signed a Request for Full Re-conveyance on behalf of the Trust so clear title could be conveyed to Eagle Crest.

Prior to closing, the Brokers discovered the pending sale of Pinnacle Inn and faxed a “Notice of Commission” to Blaine County Title on November 25, 1997. The Pinnacle Inn was ultimately sold to Eagle Crest for $2,250,000, closing on December 1, 1997. Blaine County Title held back $135,000 in trust to cover the claimed realtors’ fee.

The Brokers requested arbitration on January 27,1998, pursuant to paragraph 6 of the Exclusive Authorization of Sale. On June 26, 1998, four days before the arbitration hearing was to begin, James Gibson confessed judgment against the Corporation in favor of the Trust in the Superior Court of the State of Washington. James Gibson then took this foreign decree (i.e. Confession of Judgment) and filed a Notice of Filing of Foreign Judgment in the Fifth Judicial District, Blaine County. He then sought and obtained a Writ of Execution for the $135,000 held by Blaine County Title. The Brokers in response filed a third party claim. Unable to decide which party to pay, Blaine County Title interpleaded the funds into the district court.

The arbitration was concluded on September 14, 1998, with a final award in the amount of $180,478.49 in favor of the Brokers. An Order and Judgment Confirming Arbitration Award was entered by the district court on April 26,1999.

A bench trial was then held on September 29, 2000, to determine which party was entitled to the interpleaded funds. The district judge awarded the funds to the Brokers, concluding the Exclusive Authorization of Sale unambiguously provided six percent be paid at closing and the Corporation was, therefore, not entitled to the $135,000 after closing. The Trust now appeals the decision of the district court.

II.

STANDARD OF REVIEW

On appeal, this Court does not set aside findings of fact unless they are clearly erroneous. I.R.C.P. 52(a); Carney v. Heinson, 133 Idaho 275, 281, 985 P.2d 1137, 1143 (1999); Marshall v. Blair, 130 Idaho 675, 679, 946 P.2d 975, 979 (1997). Thus, if a district judge’s findings of fact are supported by substantial and competent, although conflicting, evidence, this Court will not disturb those findings. Marshall at id. Additionally, this Court gives due regard to the district judge’s special opportunity to judge the credibility of witnesses who personally appeared before the judge. I.R.C.P. 52(a); Marshall at id. This Court will not substitute its view of the facts for the view of the district judge. [520]*520Marshall at id. However, unlike the Court’s review of the district judge’s findings of fact, the Court exercises free review over the district judge’s conclusions of law. Id.

III.

DISCUSSION

A. The Trust has provided sufficient argument.

Initially, the Brokers contend counsel for the Trust has not provided argument or authority to support this appeal, asking this Court to disregard the Trust’s issues raised on appeal.

In support of the Broker’s contention, they cite Young Electric Sign Co. v. State, ex rel., Winder, 135 Idaho 804, 25 P.3d 117, 123 (2001), where this Court held “[a] party waives an issue cited on appeal if either authority or argument is lacking, not just if both are lacking.” (quoting State v. Zichko, 129 Idaho 259, 923 P.2d 966 (1996)). However, this Court has held that an issue will be considered as long as argument is provided. See State v. Zichko, supra.

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Cite This Page — Counsel Stack

Bluebook (online)
66 P.3d 221, 138 Idaho 517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blaine-county-title-associates-v-one-hundred-building-corp-idaho-2002.