Israel v. Leachman

72 P.3d 864, 139 Idaho 24, 2003 Ida. LEXIS 99
CourtIdaho Supreme Court
DecidedJune 18, 2003
Docket28005
StatusPublished
Cited by24 cases

This text of 72 P.3d 864 (Israel v. Leachman) 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
Israel v. Leachman, 72 P.3d 864, 139 Idaho 24, 2003 Ida. LEXIS 99 (Idaho 2003).

Opinions

WALTERS, Justice

This is an appeal from an order denying a claim for attorney fees under the Consumer Protection Act, Idaho Code § 48-608. The claim was asserted when the appellants (Israels) brought suit over certain structural and water problems that arose with respect to a manufactured home the Israels had purchased from the Leachmans. The Israels’ complaint alleged breach of contract, fraud and violation of the Consumer Protection Act. The ease went to trial, and the jury found a Consumer Protection Act violation but no intentional misrepresentation. The district court held that each party prevailed in part and denied costs and attorney fees to both parties. We affirm the district court’s decision.

FACTS AND PROCEDURAL BACKGROUND

In 1999, Joseph and Regina Israel entered into a contract with Robert and Lenore Leachman to purchase a 1996 manufactured home located in Midvale, Idaho. The home had been used as a vacation home by the Leachmans. Following the sale, the Israels began to experience many problems with the home. Some of the problems included: cracks in various places throughout the home, buckling of the floor, misalignment of doors and windows, displacement of the floor elevation, sinking of the roof between trusses, movement of the foundation and inability of the sump pumps to remove excessive water from the crawl space under the home.

In 2000, the Israels filed a complaint alleging breach of contract, fraud and various statutory violations. In response, the Leach-mans filed an answer alleging multiple affirmative defenses and a third-party complaint asserting that various other parties were responsible for the manufacture and construction of the home and should indemnify and hold the Leachmans harmless. An amended complaint later added an additional theory of a Consumer Protection Act violation.

After discovery and unsuccessful mediation efforts, the parties filed motions for summary judgment. The district court granted summary judgment to the Leachmans on the Israels’ claims for rescission of contract and damages for breach of contract, statutory liability relating to the roof snow-load requirements and statutoiy liability relating to an occupancy permit, on the ground that those issues were encompassed in the Israels’ intentional misrepresentation claim.

A jury trial began on July 30, 2001, on the issues of intentional misrepresentation and the violation of the Consumer Protection Act. The jury returned a verdict in favor of the Israels, awarding $10,000 in damages for the Consumer Protection Act violation. The jury found no intentional misrepresentation by the Leachmans.

The district court entered judgment for the Israels in the amount of $10,000. In the judgment, the court ruled that the Israels were entitled to recover their costs and a reasonable attorney fee pursuant to I.C. § 48-608(4). Both parties then filed their requests for attorney fees and costs. Following a hearing, the trial court held that each of the parties prevailed in part and did not prevail in part and denied an award of [26]*26attorney fees and costs to both parties. An amended judgment was filed requiring each party to bear its own costs. The Israels timely brought this appeal.

ISSUES PRESENTED ON APPEAL

1. Did the district court abuse its discretion in denying costs and attorney fees to the Israels?

2. Is either of the parties entitled to attorney fees on appeal?

STANDARD OF REVIEW

The determination of who is a prevailing party, for the purpose of receiving an award of attorney fees, is committed to the sound discretion of the trial court. Decker v. Homeguard Systems, 105 Idaho 158, 666 P.2d 1169 (Ct.App.1983). That determination will be disturbed only upon a showing of an abuse of discretion. McCann v. McCann, 138 Idaho 228, 61 P.3d 585 (2002). To review an exercise of discretion, this Court applies a three-factor test. The three factors are: (1) whether the trial court correctly perceived the issue as one of discretion; (2) whether the trial court acted within the boundaries of this discretion and consistent with the legal standards applicable to the specific choices available to it; and (3) whether the trial court reached its decision by an exercise of reason. Baxter v. Craney, 135 Idaho 166, 169, 16 P.3d 263, 266 (2000) (citing Sun Valley Shopping Ctr., Inc. v. Idaho Power Co., 119 Idaho 87, 94, 803 P.2d 993, 1000 (1991)).

DISCUSSION

I.

The Israels contend that the district court abused its discretion in denying the award of attorney fees pursuant to I.C. § 48-608(4). The Israels argue that the district court referred to an erroneous legal standard and failed to apply the applicable legal standards while exercising its discretion. The Israels assert that since they were the prevailing party, they are entitled to attorney fees and costs.

The Leachmans assert that the district court did not abuse its discretion by denying the award of attorney fees to the Israels. The Leachmans argue that I.R.C.P. 54(d)(1)(B) provides that in eases of multiple claims, the extent to which each party prevailed on such issues must be considered by the district court. The Leachmans argüe that the record supports that each party prevailed in part.

Idaho Code § 48-608 provides, in relevant part:

(4) Costs shall be allowed to the prevailing party unless the court otherwise directs. In any action brought by a person under this section, the court shall award, in addition to the relief provided in this section, reasonable attorney’s fees to the plaintiff if he prevails. The court in its discretion may award attorney’s fees to a prevailing defendant if it finds that the plaintiffs action is spurious or brought for harassment purposes only.

Idaho Rule of Civil Procedure 54(e)(1) provides, in relevant part:

In any civil action the court may award reasonable attorney fees, which at the discretion of the court may include paralegal fees, to the prevailing party or parties as defined in Rule 54(d)(1)(B), when provided by any statute or contract.

I.R.C.P. 54(d)(1)(B) provides:

(B) Prevailing Party. In determining which party to an action is a prevailing party and entitled to costs, the trial court shall in its sound discretion consider the final judgment or result of the action in relation to the relief sought by the respective parties, whether there were multiple claims, multiple issues, counterclaims, third party claims, cross-claims, or other multiple or cross issues between .the parties, and the extent to which each party prevailed upon each of such issue or claims. The trial court in its sound discretion may determine that a party to an action prevailed in part and did not prevail in part, and upon so finding may apportion the costs between and among the parties in a fair and equitable manner after considering all of the issues and claims in[27]

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Cite This Page — Counsel Stack

Bluebook (online)
72 P.3d 864, 139 Idaho 24, 2003 Ida. LEXIS 99, Counsel Stack Legal Research, https://law.counselstack.com/opinion/israel-v-leachman-idaho-2003.