We recently addressed the Idaho Supreme Court’s decision in 616 Inc. v. Mae Properties, LLC, No. 49190 (Feb. 8, 2023), and specifically the essential elements of a lease. The decision also includes an important appellate practice point regarding the risks of pursuing a cross-appeal.
As a reminder, 616 Inc. appealed from the district
On February 14, 2023, the Court released a unanimous decision in Treasure Valley Home Solutions, LLC v. Chason. This post will focus on the Court’s analysis of when a real estate transaction is a commercial transaction such that attorney’s fees can be awarded under Idaho Code § 12-120(3), as that analysis may create confusion for lower courts.
By way of background, Treasure Valley Home Solutions, LLC (“TVHS”), described as “an Idaho limited liability company that buys and sells properties,” submitted an offer to purchase Richard Chason’s personal residence. A dispute arose about whether the parties had entered a contract for the purchase, and the Court ultimately determined that they had not.
As the prevailing party, Chason requested his attorney’s fees under Section 12-120(3). That provision allows recovery of attorney’s fees in civil actions to recover on a contract relating to a “commercial transaction.” A commercial transaction is statutorily defined as “all transactions except transactions for personal or household purposes.”
The district court held that TVHS intended to purchase the property for commercial development, thus the contract at issue was a commercial transaction and Chason was entitled to his attorney’s fees under Section 12-120(3). On appeal, the Court disagreed, finding that “the record does not support the conclusion that the transaction itself was commercial” in part because “Chason submitted no evidence that the property was to be used for a commercial purpose.”
Continue Reading Idaho Supreme Court Update: Attorney’s Fees in Real Estate Litigation Under Idaho Code § 12-120(3)
On January 25, 2023, the Court issued a substitute opinion in Easterling v. HAL Pacific Properties. The decision, which was decided 3-2, provides insights into the Court’s views on statutory interpretation and construction. It also addresses actions that fall within Idaho’s catch-all statute of limitations, Idaho Code § 5-224.
The facts. The case concerns landlocked parcels owned by the Easterlings. The Easterlings sued an adjacent landowner, Hal Pacific Properties (“HAL”), claiming an easement by necessity over HAL’s property. The trial court mostly ruled in the Easterlings’ favor on summary judgment and at a bench trial. The trial court rejected HAL’s affirmative defense that the Easterlings’ claims were barred by the statute of limitations set forth in Idaho Code § 5-224, and held that the Easterlings were entitled to an easement by necessity over HAL’s property and set the location and width of the easement. HAL appealed.
The issues. The decision largely centered on whether the catch-all statute of limitations of Section 5-224 applies to an easement by necessity claim. Section 5-224 provides: “An action for relief not hereinbefore provided for must be commenced within four (4) years after the cause of action shall have accrued.” HAL argued that a plain reading of the statute requires its application to an easement by necessity claim, while the Easterlings argued the statute was inapplicable because the claim cannot be time barred. If Section 5-224 does apply to an easement by necessity claim, the issue turned to the accrual of the claim.Continue Reading Idaho Supreme Court Update: Idaho’s catch-all statute of limitations revokes any common law rule that a claim cannot be time barred
Idaho’s Supreme Court recently issued a new opinion discussing the requirements to form a valid lease agreement. Unfortunately, the case raises as many questions as it answers.
In 616 Inc. v. Mae Properties, LLC, No. 49190 (Feb. 8, 2023), the court reminded us that four necessary terms must be agreed upon to create an enforceable lease: (1) a definite agreement as to the extent and bounds of the property leased; (2) a definite and agreed term (length of time); (3) a definite and agreed price of rental, and (4) the time and manner of payment. If any of those essential terms are left for future negotiations, no lease comes into being and the parties are left with an unenforceable “agreement to agree.” In addition, if the length of the lease term is more than one year, the lease will not be enforceable against a party unless the four essential elements are memorialized in a writing that is signed by that party. The court may, however, overlook the lack of a signed writing in cases where the contract has been partially performed if there is other sufficient evidence of agreement on all the essential terms.Continue Reading Idaho’s Supreme Court Raises New Questions About the Essential Elements of a Lease
On January 6, 2023, the Idaho Supreme Court issued its decision in Katseanes v. Katseanes. The decision addresses the enforceability of a trial court’s oral rulings and appellate review of criminal sanctions for contempt of court.
The facts. As part of a property settlement in a divorce, Jeff agreed to pay spousal support, which