Sky Canyon Props., LLC v. Golf Club At Black Rock, LLC
| Decision Date | 30 September 2015 |
| Docket Number | No. 42216.,42216. |
| Citation | 357 P.3d 1270,159 Idaho 162 |
| Court | Idaho Supreme Court |
| Parties | SKY CANYON PROPERTIES, LLC, an Idaho limited liability company; Robert C. Samuel; Joe K. Donald and Lisbeth Lillemore Donald, husband and wife; Wayne A. Gianotti and Carolyn M. Gianotti, Trustees of the Gianotti Revocable Trust U–A dated January 29, 1991; Russell M. Wicks and Evelyn L. Wicks, husband and wife; Buddy C. Stanley and Judith L. Stanley, Trustees of the Stanley Family Trust dated February 26, 2004; Craig R. Fallon and M. Ellen Fallon, husband and wife, Plaintiffs–Appellants, v. The GOLF CLUB AT BLACK ROCK, LLC, an Idaho limited liability company, Defendant–Respondent. |
Lukins & Annis, PS, Coeur d'Alene, for appellants. Mischelle R. Fulgham argued.
John F. Magnuson, Coeur d'Alene, argued for respondent.
This is an appeal from the district court's denial, upon remand, of Appellant's Memorandum of Attorney Fees and Costs. Appellant argues that the district court erred in ruling that the court did not have jurisdiction to award fees and costs on remand. We agree with appellant and reverse.
In prior proceedings, this Court reversed the district court's judgment in favor of The Golf Club at Black Rock (Golf Club) and its award of costs and attorney fees. Sky Canyon Props., LLC v. Golf Club at Black Rock, LLC (Sky Canyon I), 155 Idaho 604, 605, 315 P.3d 792, 793 (2013). The remittitur issued to the district court stated: "IT IS HEREBY ORDERED that the District Court shall forthwith comply with the directive of the Opinion, if any action is required; and IT IS FURTHER ORDERED that Appellant's costs and fees on appeal will be addressed in a subsequent order." The Court then issued an Order Awarding Costs and Attorney Fees, stating: "IT HEREBY IS ORDERED that APPELLANTS–PLAINTIFFS' MEMORANDUM OF ATTORNEY'S FEES AND COSTS be, and hereby is, GRANTED and costs and attorney fees are awarded to Appellants and against Respondent as follows...."
On remand, Sky Canyon submitted a Memorandum of Attorney's Fees and Costs to the district court, citing Idaho Rule of Civil Procedure 54(d) and (3) and section 24.8 of the parties' agreement, the Declaration of Covenants, Conditions, and Restrictions (CCRs), as the authority entitling it to an award of costs and attorney fees. The Golf Club filed an objection to Sky Canyon's fee request, arguing that Sky Canyon did not properly preserve a request for fees under the CCRs; that following remand, the district court no longer had jurisdiction to award pre-appeal fees; that there was no prevailing party; and that the fees requested were not reasonable. The district court held a hearing on the matter on April 15, 2014, and issued its decision on May 1, 2014, denying Sky Canyon's request for costs and fees.
In its ruling the district court relied heavily on Star Phoenix Min. Co. v. Hecla Min. Co., 130 Idaho 223, 939 P.2d 542 (1997), and found that because this Court had been "silent" on the issue of whether Sky Canyon should be awarded its pre-appeal costs and fees on remand, the district court did not have the authority to make such an award. The court also found that it was not necessary for Sky Canyon to have made a fee request under the CCRs in its complaint, and that because the underlying suit was brought to interpret and enforce the CCRs, attorney fees were appropriate under section 24.8 of that agreement. Nevertheless, the district court found that Sky Canyon failed to properly preserve the issue of pre-appeal attorney fees because Sky Canyon's counsel failed to request such fees on its initial appeal to this Court.
The district court ultimately denied Sky Canyon's request for costs and fees because: (1) it had "failed to preserve the issue of attorney fees before the district court in its appeal to the Idaho Supreme Court" and (2) "because attorney fees before the district court was not an issue directed by the Idaho Supreme Court to be reviewed by this Court on remand...." As a result, the district court did not reach the issues of determining "prevailing party" or "reasonableness" of the fees and costs requested. The district court issued its Order Denying Plaintiffs' Attorney Fees and Costs on May 15, 2014. Sky Canyon timely filed its notice of appeal on June 6, 2014.
On appeal, this Court exercises free review over issues of law. Hoagland v. Ada Cnty., 154 Idaho 900, 906, 303 P.3d 587, 593 (2013). The determination of whether there is a statute or an express agreement between parties that authorizes an award of attorney fees is a question of law over which this Court exercises free review. Am. West Enters. v. CNH, LLC, 155 Idaho 746, 754–55, 316 P.3d 662, 670–71 (2013). The question of a trial court's jurisdiction "relating to the recovery of attorney fees or costs is one of law upon which an appellate court exercises free review." J.R. Simplot Co. v. Chemetics Int'l, Inc., 130 Idaho 255, 257, 939 P.2d 574, 576 (1997).
In concluding that it could not award pre-appeal costs and fees, the district court largely relied on the fact that the Sky Canyon I opinion did not direct it to do so. The district court found that "this silence by the Idaho Supreme Court was intentional and has significance when compared with the specific directive by the Idaho Supreme Court in Star Phoenix. " In Star Phoenix, this Court, having reversed a jury verdict in favor of Star Phoenix, remanded to the trial court for entry of judgment in favor of Hecla, stating: 130 Idaho at 233, 939 P.2d at 552. The district court concluded that because this Court did not similarly direct it to award costs or fees, it did not have the jurisdiction to do so. This is not the law.
Rather, the clear weight of authority directs that when there has been a change in the prevailing party due to reversal and this Court is "silent" regarding pre-appeal fees and costs the trial court is free to award the same. Great Plains Equip., Inc. v. Nw. Pipeline Corp., 136 Idaho 466, 474, 36 P.3d 218, 226 (2001) (); see also Hummer v. Evans, 132 Idaho 830, 833, 979 P.2d 1188, 1191 (1999) ().
We find Chemetics instructive. In Chemetics, this Court explained: "After a general reversal, a trial court is free to correct any error in its original findings and conclusions as to matters not passed on by the appellate court." 130 Idaho at 257–58, 939 P.2d at 576–77 (quoting Hutchins v. State, 100 Idaho 661, 666, 603 P.2d 995, 1000 (1979) ) (internal quotation marks omitted). The Court then noted that it had not passed on the question of whether Chemetics was entitled to attorney fees. Id. at 258, 939 P.2d at 577. It then adopted the reasoning of the Idaho Court of Appeals in a case where the appellate court's silence in a previous appeal on the matter of attorney fees led the district court to conclude it was powerless to award fees. Id. (citing Indus. Inv. Corp. v. Rocca, 102 Idaho 920, 643 P.2d 1090 (Ct.App.1982) ). The Court of Appeals had determined in that case, which arose out of a guaranty instrument provision for awarding fees, that the question of fees was a "subsidiary issue fairly comprised therein," quoting Idaho Appellate Rule 35(a)(3), and was still a "viable part of the case on remand." Indus. Inv. Corp., 102 Idaho at 923, 643 P.2d at 1093. Applying that same reasoning to the issue of Chemetics' motion for fees on remand, this Court held: "when this Court reversed the jury verdict as to counts I and II, relieving Chemetics of liability, the question of attorney fees was a ‘subsidiary issue fairly comprised therein.’ " Chemetics, 130 Idaho at 258, 939 P.2d at 577. This Court concluded that the district court "had the jurisdiction to consider whether Chemetics was the prevailing party and to make an award of costs and attorney fees." Id.
Likewise, in this case, this Court's decision reversed the district court's judgment, changed the prevailing party, and abstained from passing on pre-appeal costs and fees.1 Thus, the question of pre-appeal costs and fees became a "subsidiary issue fairly comprised therein" and was still a "viable part of the case on remand." The district court plainly had jurisdiction to award attorney fees and costs.
The Golf Club argues that Sky Canyon should have been able to seek attorney fees only under Idaho Code section 12–121, the sole fee request made in its Complaint. The Golf Club also argues that because Sky Canyon never sought fees under the CCRs in its pleadings it cannot do so now. The district court disagreed, finding that attorney fees were appropriate under section 24.8 of the CCRs.
Sky Canyon requested fees under the CCRs in its memorandum of costs and fees.2 This Court has previously held that this is sufficient. The failure to request attorney fees from a specific source in the initial pleading "is not fatal to a fee claim in a contested matter." Eighteen Mile Ranch, LLC v. Nord Excavating & Paving, Inc., 141 Idaho 716, 721, 117 P.3d 130, 135 (2005) (...
To continue reading
Request your trial