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)