Stibal v. Fano

337 P.3d 587, 157 Idaho 428, 2014 Ida. LEXIS 282
CourtIdaho Supreme Court
DecidedOctober 29, 2014
DocketNo. 40427
StatusPublished
Cited by5 cases

This text of 337 P.3d 587 (Stibal v. Fano) 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
Stibal v. Fano, 337 P.3d 587, 157 Idaho 428, 2014 Ida. LEXIS 282 (Idaho 2014).

Opinion

W. JONES, Justice.

April Fano and Right Way Publishing, LLC, appeal the district court’s judgment following a bench trial in which the district court found Fano liable for breaching a Release Agreement and entered judgment against Fano and Right Way Publishing, LLC, in favor of respondent, Vianna Stibal, for $56,250 in damages and punitive damages and $28,186 in attorney fees and costs. We reverse the judgment in part and affirm in part.

I. Nature of the Case

While Fano and Stibal were involved in prior litigation, they reached a settlement through mediation and signed a Release Agreement, which mutually released Stibal and Fano from liability to each other for their acts prior to the agreement. The Release Agreement further prohibited the parties from making any future negative or disparaging comments about the other. Prior to executing the Release Agreement, Fano had provided negative information about Stibal to a book author. Fano also formed a limited liability company and paid to print 500 books about Stibal. The books were printed before the Release Agreement was executed. Stibal subsequently brought the present action, alleging that Fano had breached the Release Agreement.

II. Factual and Procedural Background

Vianna Stibal and April Fano were involved in previous litigation in Bonneville County. That litigation included claims by Stibal seeking damages for defamation, libel, slander, and intentional infliction of emotional distress. Fano counterclaimed for fraud, breach of contract, and unjust enrichment. Six days before their scheduled trial, the parties mediated and settled their dispute. As part of the settlement agreement, the parties signed and executed a Release Agreement on July 30, 2010. Stibal paid Fano $12,500 pursuant to the terms of the agreement. The Release Agreement included the following relevant provisions:

8. April and Vianna agree to keep confidential the terms of this Agreement, as well as all matters, documents, and medical records pertaining to the lawsuit unless:
a. Ordered to do so by a court of law,
b. Upon the request of a law enforcement officer acting in his or her official capacity
c. Confidential disclosure to an accountant or tax adviser in connection with preparation of income tax returns or other financial documents as necessary;
d. Agreed to by the parties
[431]*4319. April and Vianna agree not to make any disparaging, defaming, or otherwise negative comment regarding each other to any third party as of the date of this Agreement forward unless:
a. Ordered to do so by a court of law
b. Upon the request of a law enforcement officer acting in his or her official capacity,
c. Agreed to by the parties.
10. April and Vianna agree to remove any comment regarding each other that is posted on the internet, for which each one of them has control, within 45 days of this agreement. April shall make a good faith effort to have the video of Vianna posted on www.youtube.com regarding USANA removed, and will provide Vianna’s attorney with a copy of any correspondence sent in an effort to remove said video.
11. The confidentiality and nondisclosure requirements of this mutual release and hold harmless agreement shall not apply to any statements, disclosures, or other communications to third parties made before the date of this Agreement, whether known or unknown.
12. The mutual release and hold harmless agreement shall apply to any statements, disclosures, or other communications to third parties made before the date of this Agreement, whether known or unknown. Prior to executing the Release Agreement,

Fano provided statements and documents to Lindsay Stock, the former daughter-in-law of Stibal. These documents included emails and portions of depositions from the previous litigation between Fano and Stibal. Lindsay Stock wrote a book called Shady Healing, which sought to expose misconduct related to Stibal’s business known as ThetaHealing.1 Stock was unable to get a publisher to publish Shady Healing. Fano agreed to pay to publish 500 copies of the book. Shady Healing was printed on July 21, 2010, prior to the Release Agreement between Fano and Stibal. The next day, Stock and Fano formed a manager-managed LLC called Right Way Publishing, LLC. Fano and Stock are the two managers of Right Way Publishing, LLC. Fano’s home address was listed as Right Way Publishing, LLC’s designated office and principal place of business. Fano was listed as the company’s agent.

On March 1, 2011, Stibal and the Theta-Healing Institute of Knowledge brought this action against Fano and Right Way Publishing, LLC, for damages relating to Fano’s alleged breach of the Release Agreement. After Fano answered the complaint, Stibal filed a motion to add a claim for punitive damages, which the district court granted. Stibal amended her complaint to include claims for breach of the covenant of good faith, fraud in the inducement, fraud on the court, and intentional infliction of emotional distress. On June 1,2012, the parties agreed to withdraw certain claims and stipulated that the claims to be tried were breach of contract, intentional infliction of emotional distress, and punitive damages.

Fano admitted to having knowledge of the contents of Shady Healing at the time she executed the Release Agreement. Fano disclosed neither the existence of Shady Healing nor her involvement with it before executing the Release Agreement. Finally, Fano admitted that she knew that Shady Healing would be sold and intended for it to be read after she executed the Release Agreement. The district court found that the book contained negative and disparaging comments about Stibal.

Following a bench trial, the district court issued its decision, ruling that Fano had breached the Release Agreement with Stibal; that Stibal proved actual damages of $6,250, representing one-half of the amount paid by [432]*432Stibal to Fano to settle the prior lawsuit; that Fano’s conduct was extreme and outrageous; and that punitive damages in the amount of $50,000 were proper. A judgment was entered by the district court in favor of the plaintiffs and against the defendant April Fano and Right Way Publishing, LLC, for $56,250, together with interest at the legal rate. The judgment was filed on September 20, 2012. On October 17, 2012, a notice of appeal from the judgment was filed by April Fano. She alone was named as the appellant; Right Way Publishing, LLC, was designated as a defendant but not as an appellant in the caption and recitals of the notice of appeal. No timely notice of appeal from the judgment for damages was ever filed by Right Way Publishing, LLC.

The plaintiffs filed a Memorandum of Costs and Fees on October 3, 2012 and Right Way Publishing, LLC filed a motion for attorney fees on October 12, 2012.

On October 25, 2012, April Fano filed an amended notice of appeal, still designating her as the appellant and Right Way Publishing, LLC, only as a defendant.

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Bluebook (online)
337 P.3d 587, 157 Idaho 428, 2014 Ida. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stibal-v-fano-idaho-2014.