Erickson v. Flynn

• Decision Date: 19 December 2002
• Docket Number: No. 27404.,27404.
• Citation: 138 Idaho 430,64 P.3d 959
• Parties: Marvin ERICKSON, Plaintiff-Appellant-Cross-Respondent, v. Kevin J. FLYNN, Defendant-Respondent-Cross-Appellant.
• Court: Idaho Court of Appeals

64 P.3d 959

138 Idaho 430

Marvin ERICKSON, Plaintiff-Appellant-Cross-Respondent, v. Kevin J. FLYNN, Defendant-Respondent-Cross-Appellant.

No. 27404.

Court of Appeals of Idaho.

December 19, 2002.

Rehearing Denied December 18, 2003.

Review Denied March 3, 2003.

Holmes Law Office, P.A., Coeur dÁlene, for appellant. Edwin B. Holmes argued.

Kevin Flynn, Westampton, New Jersey, pro se respondent.

AMENDED OPINION THE COURT'S PRIOR OPINION DATED NOVEMBER 4, 2002 IS HEREBY WITHDRAWN

LANSING, Judge.

This is an appeal from a judgment following a bench trial on a breach of contract claim and a quasi-contract claim sounding in unjust enrichment or quantum meruit. The district court denied the breach of contract claim but awarded damages to the plaintiff on a quantum meruit theory. The trial court then awarded the defendant attorney fees for his successful defense of the breach of contract claim, but awarded costs to the plaintiff as the overall prevailing party. We reverse the judgment for the plaintiff on the quantum meruit theory and remand the case for reconsideration of attorney fees and costs.

BACKGROUND

Kevin J. Flynn and Marvin Erickson are both coin collectors. In the spring of 1996, Flynn was planning to author a book about coins with misplaced dates. In May of that year, he contacted Erickson because Erickson owned some coins with misplaced dates that Flynn wished to feature in his book. Between May of 1996 and March of 1997, Erickson loaned Flynn 307 coins for this purpose. Flynn published the book in July of 1997, and it included photographs of or references to more than 100 of Erickson's coins. All of the coins were returned to Erickson.

A dispute arose as to whether Flynn was obligated to compensate Erickson in any way for the use of the coins, and this lawsuit resulted. In his amended complaint, Erickson alleged that, in exchange for the use of Erickson's coins, Flynn had agreed to include Erickson's name, cross-reference system, and misplaced coin date identification system in Flynn's book; to publish a photograph and short biography of Erickson in the book; to deliver to Erickson photographs of all of the coins that Erickson had provided to Flynn; and to provide Erickson copies of all of the computer files generated by Flynn in his research for the book. Erickson alleged breach of contract and unjust enrichment as theories of recovery. As relief, he requested a money judgment in excess of $10,000 and an order enjoining Flynn from disseminating any materials containing photographs of Erickson's coins, which would prevent Flynn from distributing his book.

A court trial was conducted during which Erickson claimed damages of $40,904 for Flynn's failure to give him digitalized photographs of certain coins, $10,000 for having to buy computer and camera equipment to create his own digitalized photographs, and $2,000 in damages for Flynn's publication of pictures of Erickson's coins.

The district court found that "there was no meeting of minds between these parties as to all essential terms of a contract," and that Erickson had not proved any custom or practice in the coin-collecting field that would provide an implied contractual term calling for Erickson to receive some material or pecuniary benefit in return for Flynn's use of his coins. Therefore, the district court denied Erickson's breach of contract claim. The only alternative theory of recovery pleaded by Erickson in his amended complaint was unjust enrichment, but the district court held that a claim of quantum meruit had also been tried by consent. The district court did not separately address Erickson's claim for unjust enrichment. In ruling upon the quantum meruit claim, the district court concluded that it was necessary to determine the value of Erickson's loan of his coins to Flynn. The district court noted that "there was substantial testimony indicating that coins were often provided by collectors without any agreement to receive any photograph for the coin[s]." Nevertheless, because "the basic theme between the two parties was that Flynn could use Erickson's coins, and Erickson would then be provided photographs from Flynn," the district court awarded Erickson, as a quantum meruit recovery, the approximate cost of photographing the coins he loaned to Flynn, which the district court found to be $1,500.

In responding to the parties' requests for costs and attorney fees, the district court held that Erickson was the prevailing party overall because he had sought and recovered monetary relief on the quantum meruit claim, but that Flynn was the prevailing party on the breach of contract claim. The district court concluded that the contract claim was based on an alleged commercial transaction, so that Flynn was entitled to attorney fees pursuant to Idaho Code § 12-120(3), but that the statute did not authorize an award of fees for the quantum meruit claim. Accordingly, the district court awarded attorney fees to Flynn in an amount that the court found was reasonably expended defending the breach of contract claim. The court awarded costs to Erickson as the prevailing party overall, but did not award attorney fees to Erickson. Offsetting Erickson's and Flynn's cost and fee awards and Erickson's damage award resulted in a net judgment in favor of Flynn in the amount of $8,699.84.

Erickson appeals, arguing that the district court erred in its award of attorney fees and costs. Flynn has cross-appealed. He asserts error in the award of fees and costs, challenges the district court's award of damages to Erickson on the quantum meruit theory, and raises several other issues that we find it unnecessary to address.¹

A. Quantum Meruit Award

Our resolution of Flynn's challenge to the quantum meruit award is dispositive of several of the other issues raised by the parties. Therefore, we consider it first.

Flynn asserts that the district court erred by holding that a quantum meruit claim was tried by the consent of the parties and by not recognizing the distinction between the theories of unjust enrichment and quantum meruit. He also contends that there was no evidence showing the reasonable value of Flynn's use of Erickson's coins to demonstrate a right to recover in quantum meruit, and no evidence that Flynn was enriched by the use of Erickson's coins to prove Erickson's claim of unjust enrichment. Because we agree that there was insufficient evidence to support an award based upon either theory, we do not consider Flynn's other challenges to the awards.

When a case has been tried to the court without a jury, we will not disturb the trial court's findings of fact unless they are clearly erroneous. Idaho Rule of Civil Procedure 52(a); In re Williamson, 135 Idaho 452, 454, 19 P.3d 766, 768 (2001); Rueth v. State, 103 Idaho 74, 77, 644 P.2d 1333, 1336 (1982). In determining whether a finding is clearly erroneous, this Court does not weigh the evidence or assess the credibility of witnesses as did the trial court. Williamson, 135 Idaho at 454, 19 P.3d at 768; Kootenai Electric Coop., Inc. v. Washington Power Co., 127 Idaho 432, 434-35, 901 P.2d 1333, 1335-36 (1995). Instead, we inquire only whether the findings are supported by substantial and competent evidence. Williamson, 135 Idaho at 454, 19 P.3d at 768; Rueth, 103 Idaho at 77, 644 P.2d at 1336. Evidence is regarded as substantial if a reasonable trier of fact would accept it and rely upon it in determining whether a disputed point of fact has been proven. Williamson, 135 Idaho at 454, 19 P.3d at 768. With respect to the district court's conclusions of law, we exercise free review. Id.

Unjust enrichment and quantum meruit are related theories of liability, but carry different measures of recovery. See generally, Peavey v. Pellandini, 97 Idaho 655, 659-61, 551 P.2d 610, 614-16 (1976). Unjust enrichment theory allows recovery where the defendant has received a benefit from the plaintiff and it would be inequitable to allow the defendant to retain the benefit without compensating the plaintiff for its value. Beco Const. Co. v. Bannock Paving Co., 118 Idaho 463, 466, 797 P.2d 863, 866 (1990); Continental Forest Products, Inc. v. Chandler Supply Co., 95 Idaho 739, 743, 518 P.2d 1201, 1205 (1974); Hausam v. Schnabl, 126 Idaho 569, 573, 887 P.2d 1076, 1080 (Ct.App. 1994); Idaho Lumber, Inc. v. Buck, 109 Idaho 737, 745, 710 P.2d 647, 655 (Ct.App.1985). The defendant must make recompense only for that amount of the benefit that would be unjust for the defendant to retain. Continental Forest Products, Inc.,95 Idaho at 743,518 P.2d at 1205; Hausam, 126 Idaho at 573-74,887 P.2d at 1080-81; Idaho Lumber, Inc.,109 Idaho at 744,710 P.2d at 654. For a quantum meruit claim, on the other hand, the measure of recovery is the reasonable value of the services rendered or of goods received, regardless of whether the defendant was enriched. Peavey, 97 Idaho at 659-61,551 P.2d at 614-16; Hartwell Corp. v. Smith, 107 Idaho 134, 141, 686 P.2d 79, 86 (Ct.App.1984). Under either theory, the plaintiff carries the burden of proof. Peavey, 97 Idaho at 661,551 P.2d at 616; Hausam, 126 Idaho at 574,887 P.2d at 1081.

The district court chose the cost of photographing Erickson's coins as the measure of its quantum meruit award to Erickson. We conclude that this was an erroneous measure of damages for either an unjust enrichment or a quantum meruit award. The district court based this award on its finding that the "basic theme" of the parties' dealings was that Erickson would allow Flynn to use his coins, and Flynn would provide photographs to Erickson. This reasoning is flawed because the district court also found that the parties' dealings did not result in a contract. The cost of photographing Erickson's coins would have been an appropriate measure of damages only if the district court had found there was an enforceable contract calling for Flynn to provide photographs to Erickson. Any award for unjust enrichment or...