Alexander v. Stibal

Citation368 P.3d 630
Decision Date26 February 2016
Docket NumberNo. 41604.,41604.
Parties Kara ALEXANDER, Plaintiff–Respondent, and Robby Robinson, Plaintiff, v. Vianna STIBAL, an individual, Nature Path Inc., an Idaho corporation, and ThetaHealing Institute of Knowledge, Defendants–Appellants.
CourtUnited States State Supreme Court of Idaho

368 P.3d 630

Kara ALEXANDER, Plaintiff–Respondent,
and
Robby Robinson, Plaintiff,
v.
Vianna STIBAL, an individual, Nature Path Inc., an Idaho corporation, and ThetaHealing Institute of Knowledge, Defendants–Appellants.

No. 41604.

Supreme Court of Idaho, Pocatello, May 2015 Term.

Feb. 26, 2016.
Rehearing Denied April 29, 2016.


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Thompson Smith Woolf Anderson Wilkinson & Birch, PLLC, Idaho Falls, for appellants. Michelle Wodynski argued.

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Pike Herndon Stosich & Johnston, PA, Idaho Falls, for respondent. Alan Fred Johnston argued.

HORTON, Justice.

This appeal arises from a case in which Kara Alexander sued Vianna Stibal for fraud, breach of contract, and punitive damages. A jury awarded Alexander $111,000 on her contract claim, $17,000 on the fraud claim, and $500,000 in punitive damages. During the trial, the district court denied Stibal's motion for a directed verdict on the fraud and breach of contract claims. Following trial, Stibal moved for a new trial and for judgment notwithstanding the verdict (JNOV). The district court denied these post-trial motions, but reduced the punitive damages award to $384,000 pursuant to Idaho Code section 6–1604. On appeal, Stibal challenges the district court's rulings on the contract, fraud, and punitive damages issues. We affirm in part, reverse in part, and remand for proceedings consistent with this opinion.

I. FACTUAL AND PROCEDURAL BACKGROUND

Stibal is the owner and operator of Nature Path, Inc. and the ThetaHealing Institute of Knowledge (THInK). Stibal teaches ThetaHealing, a self-discovered methodology that she claims results in healing and general health. At the times relevant to this case, Stibal operated out of the Idaho Falls area, but she markets her products, trainings, and classes worldwide. Students can take classes from Stibal and, following a course of study, be authorized to teach her methods. Alexander and her significant other, Robby Robinson, were among Stibal's students. Alexander began studying ThetaHealing in New York in 2006, taking classes from an instructor licensed by Stibal. Alexander's educational background included a bachelor's degree for which she "double-majored in art and biology as a medical illustrator" and some graduate work in neuroscience. Before temporarily relocating to Idaho Falls to study with Stibal, Alexander was self-employed as a medical illustrator. At the time of trial, Robinson worked part-time as a pilot.

In the beginning of 2008, THInK announced that it would offer a newly-created doctoral degree in ThetaHealing. The degree was promoted on THInK's webpage, the yellow pages, online course descriptions, email, and online videos: it was referred to as a "PhD," "Doctorate of Ministry," and a "Doctorate." Alexander and Robinson were already in Idaho Falls taking classes from Stibal at this time. Following the announcement that the doctoral degree was available, they decided to take additional classes to obtain the degree. Eventually, Alexander and Robinson were awarded plaques announcing their receipt of "a Doctorate of Ministry in ThetaHealing." Alexander testified that she took three additional courses in the summer of 2008 in order to obtain the doctorate degree.

In the fall of 2008, students of ThetaHealing, including Alexander and Robinson, began to question the validity of their doctoral degrees. In November of 2011, Alexander and Robinson filed a complaint against Stibal, alleging breach of contract and fraud. Stibal moved for summary judgment, which the district court denied.1 Alexander and Robinson moved for leave to amend their complaint to include a claim for punitive damages, which was also denied. After a new district judge was assigned to the case, they renewed their motion to amend the complaint to include a prayer for punitive damages. This motion was granted. The jury trial began on July 23, 2013. Because Robinson was unable to attend the trial due to a work-related scheduling conflict, the district court dismissed his claims. The issues at trial before the jury, as framed by Alexander's complaint, were whether Stibal: (1) fraudulently misrepresented instances of healing, and (2) breached a contract with Alexander.

Alexander's breach of contract claim alleged that Stibal "breached the contract by not providing a valid doctorate degree to" Alexander. Alexander testified that Stibal

368 P.3d 636

said THInK was in "the process of accreditation." Stibal testified that she informed her students that the school was not accredited and characterized the doctorate degree as a "little award" to show students that their work was appreciated. Stibal's daughter, Bobbi Lott, also testified that students were informed that the program was not accredited.

Alexander's complaint alleged four fraudulent factual assertions by Stibal: (1) "that she healed herself from cancer ;" (2) "that she pulled herself out of a coma in Italy;" (3) "that she healed herself from heart disease ;" and (4) "that her healing abilities can make liquids in containers, such as gasoline in a vehicle or beverages in a refrigerator[,] refill themselves." At trial, there was evidence of other purportedly fraudulent statements made by Stibal. These included Stibal's representations that she was in good health and her claim to have healed her grandson's lung.

At trial, a great deal of evidence was presented regarding Stibal's claim to have cured herself of cancer. By Stibal's account, in 1995 she was diagnosed with cancer in her right femur and was cured using the ThetaHealing technique. Stibal claimed that her doctors told her that her leg might need to be amputated, she needed to undergo chemotherapy, and she had sarcoma and possibly lymphoma. Stibal's medical records were introduced at trial. These records include the results of a biopsy which indicated a suspicion of cancer but were not diagnostic. Alexander's expert witness, Dr. Christian Shull, testified that the medical records reflect that Stibal was not definitively diagnosed with any form of cancer and that it would have been inappropriate for any doctor to advise her to undergo chemotherapy or suggest amputating the leg. Stibal's expert witness, Dr. Phillip Beron, also testified that the records did not show a diagnosis and that it would not have been appropriate to administer chemotherapy or amputate the leg. Stibal's ex-husband, Blake McDaniel, testified that Stibal was not definitively told that she had cancer, that her leg slowly healed, and that he had confronted her about her claim to have been diagnosed with cancer.

The district court denied Stibal's motion for a directed verdict with regard to Alexander's claims of fraud and breach of contract. The jury awarded Alexander $17,000 on her fraud claim, $111,000 for breach of contract, and $500,000 in punitive damages. On August 5, 2013, the district court entered a judgment of $628,000 in Alexander's favor. Stibal moved for a new trial and for JNOV. The district court denied these post-trial motions, but reduced the punitive damage award to $384,000. Stibal timely appealed.

II. STANDARD OF REVIEW

"When a court reviews a motion for j.n.o.v. under I.R.C.P. 50(b), the motion is treated as a delayed motion for a directed verdict and the same standard is applied for both." Olson v. EG & G Idaho, Inc., 134 Idaho 778, 781, 9 P.3d 1244, 1247 (2000). "In reviewing a decision to grant or deny a motion for directed verdict or a judgment notwithstanding the verdict, this Court applies the same standard as that applied by the trial court when originally ruling on the motion." Waterman v. Nationwide Mut. Ins. Co., 146 Idaho 667, 672, 201 P.3d 640, 645 (2009). This Court determines:

whether there was sufficient evidence to justify submitting the claim to the jury, viewing as true all adverse evidence and drawing every legitimate inference in favor of the party opposing the motion for a directed verdict. This test does not require the evidence be uncontradicted, but only that it be of sufficient quantity and probative value that reasonable minds could conclude that a verdict in favor of the party against whom the motion is made is proper. Where a non-moving party produces sufficient evidence from which reasonable minds could find in its favor, a motion for directed verdict should be denied.

April Beguesse, Inc. v. Rammell, 156 Idaho 500, 509, 328 P.3d 480, 489 (2014) (quoting Enriquez v. Idaho Power Co., 152 Idaho 562, 565, 272 P.3d 534, 537 (2012) ).

"A trial court has broad discretion in ruling on a motion for a new trial."

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Blizzard v. Lundeby, 156 Idaho 204, 206, 322 P.3d 286, 288 (2014). When considering a claimed abuse of discretion, we consider:

(1) whether the trial court correctly perceived the issue as one of discretion; (2) whether the trial court acted within the outer boundaries of its discretion and consistently with the legal standard applicable to the specific choices available to it; and (3) whether the trial court reached its decision by an exercise of reason.

Id. (quoting Burggraf v. Chaffin, 121 Idaho 171, 173, 823 P.2d 775, 777 (1991) ). "The trial court is...

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