Case Title: Medical Recovery Svcs v. Eddins

Citation: 

Docket Number: 47848

State: idaho

Court: Idaho Supreme Court (civil)

Date: 2021-07-09T00:00:00Z

Document:
1 
 
 
IN THE SUPREME COURT OF THE STATE OF IDAHO 
 
 
 
Docket No. 47848 
 
MEDICAL RECOVERY SERVICES, LLC, 
) 
an Idaho limited liability company, 
 
 
) 
 
 
 
 
 
 
 
) 
Boise, February 2021 Term 
     Plaintiff-Respondent, 
 
 
 
) 
  
 
 
 
 
 
 
) 
Filed: July 9 2021 
v. 
 
 
 
 
 
 
) 
 
 
 
 
 
 
 
 
) 
Melanie Gagnepain, Clerk 
MICHAEL D. EDDINS, 
 
 
 
) 
 
 
 
 
 
 
 
) 
     Defendant-Appellant. 
 
 
 
) 
__________________________________________) 
 
 
 
 
 
Appeal from the District Court of the Seventh Judicial District of the 
 
State of Idaho, Jefferson County. Robert L. Crowley, Jr., Magistrate Judge; 
Stevan H. Thompson, District Judge.  
 
 
The judgment of the district court is affirmed in part, reversed in part, 
 
and the case is remanded.  
 
 
Lowell N. Hawkes, Chartered, Pocatello, attorney for Appellant. Lowell N. 
 
Hawkes argued.  
 
 
Smith Driscoll and Associates, Idaho Falls, attorneys for Respondent. Bryan D. 
 
Smith argued. 
 
_________________________________ 
 
BEVAN, Chief Justice. 
This is a medical collection case involving two medical bills. Medical Recovery Services, 
LLC, (MRS) sued Michael Eddins to collect on debts that had purportedly been assigned to MRS 
by Intermountain Emergency Physicians and Intermountain Anesthesia. After a bench trial, the 
magistrate court dismissed MRS’s complaint, holding MRS lacked standing because it failed to 
prove a valid assignment occurred. MRS appealed to the district court. That court reversed, 
holding the magistrate court erred in limiting the admission of two exhibits that MRS relied upon 
to establish that Eddins’ accounts had been validly assigned to it. Alternatively, the district court 
held Eddins was judicially estopped from raising the assignment issue at trial because he did not 
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raise it earlier during the litigation. Eddins timely appealed to this Court. We affirm in part, 
reverse in part, and remand. 
I. FACTUAL AND PROCEDURAL BACKGROUND 
On March 22, 2014, Eddins went to the emergency room at Eastern Idaho Regional 
Medical Center (EIRMC) complaining of abdominal pain. Eddins’ appendix was removed and 
other medical services were performed on his behalf. Eddins received medical treatment from 
Intermountain Emergency Physicians (IEP) and Intermountain Anesthesia (IA) related to these 
procedures. Eddins did not pay for the services and the two healthcare providers allegedly 
assigned the accounts to MRS for collection.  
On April 20, 2015, MRS filed a complaint against Eddins to collect $996.22 for services 
he received from IEP, and $1,633.66 for services he received from IA. Eddins filed an answer 
asserting the charges were not reasonable and demanding a jury trial. Eddins later filed an 
amended answer and jury demand. On April 4, 2016, MRS filed a motion for summary 
judgment, which the magistrate court denied after concluding there were material issues of fact 
regarding the reasonableness of the charges for services provided to Eddins.  
The parties waived a jury trial and a bench trial was held on April 24, 2018. At the outset, 
MRS noted the only issue the court addressed at summary judgment was the reasonableness of 
the fees and asked whether that would be the only issue for trial. Eddins replied he did not have a 
problem acknowledging he received treatment in the ER and that there was an appendectomy, 
but reiterated his concerns about the reasonableness of the charges, stating: 
I believe everything fits within reasonableness. I would stipulate that before the 
suit was filed, there was [sic] demand made, letters sent, or letter, whatever. 
There’s some documents on that that typically we wouldn’t go in; but if he wants 
to put those in to show that context, I probably wouldn’t have a problem with that. 
And I – in a big scope I do agree that reasonableness is what we’re talking about 
here. 
During trial, MRS sought to introduce two exhibits, Exhibit 2 and Exhibit 6, which 
purported to show the assignment to MRS of Eddins’ obligations to IEP and IA. Exhibit 2 is 
relevant to IEP’s claim. It is titled “ASSIGNMENT OF ACCOUNT,” and provides, in relevant 
part: 
  
WE HEREBY ASSIGN AND TRANSFER OUR CLAIM AGAINST 
Michael D. Eddins IN THE AMOUNT OF $883.00 OVER TO MEDICAL 
RECOVERY SERVICES, LLC, WITH FULL POWER AND AUTHORITY TO 
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DO AND PERFORM ALL LEGAL ACTS NECESSARY FOR THE 
COLLECTION, SETTLEMENT, COMPROMISE OR SATISFACTION OF 
SAID CLAIM, EITHER IN THE NAME OF THE UNDERSIGNED OR IN THE 
NAME OF THE AGENCY.  
(Capitalization in original). Exhibit 2 is signed by Kerrie Finuf, the business officer manager of 
IEP. Exhibit 6 contains identical language but assigns IA’s claim for $1,448 against Eddins to 
MRS. Exhibit 6 is signed by Jennifer Waddell of IA.  
At trial, MRS attempted to introduce Exhibits 2 and 6 during Taylor Thomas Lugo’s 
testimony. Lugo is the president of MRS and has no direct connection to either medical entity. 
Eddins objected on foundation, arguing there was no proof from either medical firm that these 
were valid assignments. Eddins expressed that he would not object to the admission of Exhibit 2 
for the limited purpose of showing MRS relied on it. MRS conveyed that Eddins’ foundation 
objection would be addressed later in the trial when the signatory of Exhibit 2, Ms. Finuf, 
testified about the document. At that time, MRS agreed to the limited admission of Exhibit 2 
solely for the purpose of showing MRS relied on it.  
When MRS asked to introduce Exhibit 6, Eddins lodged the same objection, stating, “I 
don’t have a . . . problem, [y]our Honor, for the same reason as the other one, that it’s submitted 
for purposes of showing they relied upon it. They have not made a showing of actual authority.” 
Counsel for MRS replied that he would follow up with an additional witness. The magistrate 
court ruled it was admitting Exhibit 6 for the limited purpose at that time.  
Later in the trial, Finuf testified she had worked for IEP for 14 years and that “her 
doctors” put her in charge of all the business aspects of the company, which included assigning 
billing accounts to MRS for collection as needed. MRS then asked the court to admit Exhibit 2 
without limitation to show that the account was properly assigned to MRS. Eddins renewed his 
objection, arguing that Finuf could not give the time or circumstances, or even the identity, of the 
person who gave her specific authority to make assignments. The magistrate court reserved 
ruling to allow the parties to submit more briefing on the issue. Both parties submitted post-trial 
briefing, however, it is not included in the record on appeal, so we are unable to ascertain what 
the parties argued in regard to the foundation for Exhibits 2 and 6. MRS never called another 
witness at trial to clarify the foundation for Exhibit 6.  
On August 29, 2018, the magistrate court issued its memorandum decision. The court 
began by noting it had not received testimony or evidence from any officer or director at IEP 
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regarding Finuf’s authority to make assignments on its behalf. Likewise, the court did not receive 
testimony from Jennifer Waddell, the signatory of Exhibit 6, nor did it receive evidence from any 
officer or director at IA regarding the authority or agency of Ms. Waddell to make assignments 
for IA. The magistrate court concluded that MRS lacked standing because it failed to prove the 
individuals who signed Exhibits 2 and 6 had authority to make assignments for either IEP or IA. 
Accordingly, the magistrate court dismissed MRS’s claims against Eddins without reaching any 
conclusion as to the reasonableness of the charges. The magistrate court later awarded attorney 
fees and costs against both medical entities. 
On January 7, 2019, MRS filed a timely notice of appeal to the district court. There are 
no documents that were filed with the district court in the record before this Court. On January 
23, 2020, the district court entered its opinion and order on appeal, reversing the magistrate 
court’s decision and remanding the case. The district court concluded the magistrate court 
erroneously disregarded Finuf’s testimony about her agency relationship and her authority to 
assign Eddins’ account to MRS. The district court held that both Exhibit 2 and 6 should have 
been admitted for all purposes based on the testimony of Finuf and Lugo. The district court did 
not explain why Jennifer Waddell, the signatory of Exhibit 6, was not required to provide 
testimony similar to Finuf to establish her agency relationship with IA at trial. The district court 
held the magistrate court abused its discretion when it failed to admit Exhibits 2 and 6 to show 
there was a legitimate assignment of Eddins’ accounts to MRS for collection.  
In addition, the district court held that in the interest of justice and fairness Eddins was 
judicially estopped from raising the assignment issue at trial because he did not object earlier 
during the proceedings. Specifically, in Eddins’ response to MRS’s motion for summary 
judgment, he only challenged the reasonableness of the medical charges—not the assignment to 
MRS. The district court vacated the judgment and remanded the case to the magistrate court for 
consideration on the merits of the reasonableness of the fees charged. The district court also 
awarded MRS attorney fees and costs under Idaho Code sections 12-120(1) and (3), and Idaho 
Appellate Rules 40 and 41.1 Eddins filed a timely notice of appeal to this Court.  
                                                 
1 Apparently, on February 6, 2020, Eddins filed a motion for reconsideration. Eddins claims that, contrary to Idaho 
Rule of Civil Procedure 54(d)(5), the district court did not schedule a hearing or make any ruling on his motion. This 
claim is based on the duty of a district court to rule on such motions. See Fisk v. McDonald, 167 Idaho 870, 892, 477 
P.3d 924, 946 (2020) (recognizing that the district court must hear and decide all motions for reconsideration). The 
trouble with Eddins’ claim is that no records from the district court proceedings, including his motion for 
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II. STANDARD OF REVIEW 
This Court’s standard of review for appellate decisions from district courts sitting in an 
appellate capacity is familiar. We review such decisions by affirming the district court “as a 
matter of procedure,” when a district court affirms a magistrate court’s decision: 
When this Court reviews the decision of a district court sitting in its 
capacity as an appellate court, the standard of review is as follows: 
The Supreme Court reviews the trial court (magistrate) record to 
determine whether there is substantial and competent evidence to support 
the magistrate’s findings of fact and whether the magistrate’s conclusions 
of law follow from those findings. If those findings are so supported and 
the conclusions follow therefrom and if the district court affirmed the 
magistrate’s decision, we affirm the district court’s decision as a matter of 
procedure. 
Thus, this Court does not review the decision of the magistrate court. Rather, we 
are procedurally bound to affirm or reverse the decisions of the district court. 
Medrain v. Lee, 166 Idaho 604, 607, 462 P.3d 132, 135 (2020) (quoting Pelayo v. Pelayo, 154 
Idaho 855, 858–59, 303 P.3d 214, 217–18 (2013)). However, when a district court reverses a 
magistrate court decision, our standard of review is more nuanced, particularly when the 
question of an agency relationship is involved:  
“[t]his Court has previously viewed the question of whether an agency 
relationship exists as a question of fact for the [fact-finder] to determine.” 
[Humphries v. Becker, 159 Idaho 728, 735 n.2, 366 P.3d 1088, 1095 n.2 (2016)]. 
But, to be clear, “[w]hether facts sufficient to constitute an agency relationship 
exist is indeed a question of fact for the [fact-finder], however, whether a given 
                                                                                                                                                             
reconsideration, were made part of the record on appeal before this Court – aside from the transcript of the hearing 
on oral argument before the district court. Eddins’ counsel noted that the record included a document that included a 
listing of the “Events and Orders of the Court.” This is true. But that document is simply like a table of contents that 
lists the Register of Actions, see I.A.R. 28(b)(1)(A), which includes a listing of all the filings that occurred in the 
case. Simply having that document as part of the record does not mean that the relevant documents themselves were 
made a part of the record. Idaho Appellate Rule 28(b) identifies the contents of a “Standard Record.” Conspicuously 
absent from the documents included in the Standard Record are any motions, briefs or other similar papers. It is 
incumbent upon appellate counsel to insure that any such documents are included in the record by either (1) moving 
to add documents to the record within 28 days of the date of service of the record, I.A.R. 29(a), or by (2) moving to 
augment the clerk’s or agency’s record pursuant to Idaho Appellate Rule 30(a). It is well established that “[t]he 
appellant has the obligation to provide a sufficient record to substantiate his or her claims on appeal.” Indian Springs 
LLC v. Indian Springs Land Inv., LLC, 147 Idaho 737, 751, 215 P.3d 457, 471 (2009) (quoting W. Cmty. Ins. Co. v. 
Kickers, Inc., 137 Idaho 305, 306, 48 P.3d 634, 635 (2002)). This Court will not presume error below in the absence 
of a record that is adequate to review the appellant’s claims. Id. Thus, while we do not conclude that it makes a 
difference in our decision today, we are precluded from considering any grievance related to the district court’s 
alleged inaction in failing to rule on Eddins’ motion for reconsideration.  
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set of facts are sufficient to constitute an agency relationship is a question of law 
appropriate for this Court’s consideration.” Id. 
Accordingly, a [trial] court may, as a matter of law, make a preliminary finding 
that there are insufficient facts to constitute an agency relationship. In other 
words, a [trial] court may preliminarily find that no facts suggest an agency 
relationship exists. 
Nelson v. Kaufman, 166 Idaho 270, ___, 458 P.3d 139, 145 (2020) (internal citation omitted).  
Thus, in this case we are called upon to review the trial court record and determine, as a 
matter of law, whether the magistrate court’s conclusion that no agency relationship existed is 
correct. We owe no particular deference to the district court’s decision in cases like this one, 
where the district court reversed the magistrate court.  
A trial court’s evidentiary rulings are reviewed under the abuse of discretion standard. 
Dep’t of Fin., Sec. Bureau v. Zarinegar, 167 Idaho 611, 625, 474 P.3d 683, 697 (2020). When 
this Court reviews an alleged abuse of discretion, it asks whether the trial court “(1) correctly 
perceived the issue as one of discretion; (2) acted within the outer boundaries of its discretion; 
(3) acted consistently with the legal standards applicable to the specific choices available to it; 
and (4) reached its decision by the exercise of reason.” Lunneborg v. My Fun Life, 163 Idaho 
856, 863, 421 P.3d 187, 194 (2018). A court’s improper exclusion of evidence will be overturned 
on appeal if it affects a party’s substantial right. Perception Const. Mgmt., Inc. v. Bell, 151 Idaho 
250, 253, 254 P.3d 1246, 1249 (2011) (citing I.R.E. 103; I.R.C.P. 61(a); Burgess v. Salmon River 
Canal Co., Ltd., 127 Idaho 565, 574, 903 P.2d 730, 739 (1995)). 
“Jurisdictional issues, like standing, are questions of law, over which this Court exercises 
free review.” Valencia v. Saint Alphonsus Med. Ctr. - Nampa, Inc., 167 Idaho 397, ___, 470 P.3d 
1206, 1209 (2020) (quoting Westover v. Idaho Cntys. Risk Mgmt. Program, 164 Idaho 385, 388, 
430 P.3d 1284, 1287 (2018)). “Similarly, this Court has free review over whether dismissal for 
lack of jurisdiction was properly granted.” Id. (quoting Tucker v. State, 162 Idaho 11, 17, 394 
P.3d 54, 60 (2017)). A claimant must be the real party in interest to have standing to sue. I.R.C.P. 
17(a). A party’s standing as the real party in interest can be raised “at any time.” Houpt v. Wells 
Fargo Bank, Nat. Ass’n, 160 Idaho 181, 186, 370 P.3d 384, 389 (2016). 
III. ANALYSIS 
This appeal presents three primary issues, apart from whether attorney fees should be 
awarded on appeal. The first two are interconnected and if resolved in MRS’s favor, would 
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preclude Eddins from pursuing this appeal. As such, those issues will be discussed first, even 
though the merits of the admissibility of the exhibits and the ultimate question of MRS’s 
standing are truly the core of the matter before us.  
A. 
The district court improperly applied the doctrine of judicial estoppel in this 
case.  
 Judicial Estoppel is inapt since Eddins never changed positions in this case. 
1.
Eddins appeals the district court’s determination that he was judicially estopped from 
challenging the assignment of his accounts to MRS. The district court held Eddins did not 
sufficiently challenge assignment of the accounts to MRS because he did not object to the 
validity of the assignments prior to trial. The district court recognized that Eddins had several 
opportunities to argue the validity of the assignments, but instead took the position that the only 
issue at trial would be the reasonableness of the medical charges. The district court held in the 
interest of justice and fairness, Eddins would be judicially estopped from bringing the argument 
regarding the validity of the assignments on remand. 
Idaho adopted the doctrine of judicial estoppel in Loomis v. Church, 76 Idaho 87, 277 
P.2d 561 (1954). Judicial estoppel is a doctrine that “precludes a party from advantageously 
taking one position, then subsequently seeking a second position that is incompatible with the 
first.” McGimpsey v. D&L Ventures, Inc., 165 Idaho 205, 216, 443 P.3d 219, 230 (2019) 
(quoting McCallister v. Dixon, 154 Idaho 891, 894, 303 P.3d 578, 581 (2013)). 
The policies underlying preclusion of inconsistent positions are general 
considerations of the orderly administration of justice and regard for the dignity of 
judicial proceedings. . . . Judicial estoppel is intended to protect against a litigant 
playing fast and loose with the courts . . . Because it is intended to protect the 
dignity of the judicial process, it is an equitable doctrine invoked by a court at its 
discretion. 
McKay v. Owens, 130 Idaho 148, 152, 937 P.2d 1222, 1226 (1997) (quoting Rissetto v. Plumbers 
& Steamfitters Local 343, 94 F.3d 597, 601 (9th Cir. 1996)). Judicial estoppel is intended to 
“prevent abuse of the judicial process by deliberate shifting of positions to suit the exigencies of 
a particular action.” Lawrence v. Hutchinson, 146 Idaho 892, 900, 204 P.3d 532, 540 (Ct. App. 
2009) (quoting McKay, 130 Idaho at 153, 937 P.2d at 1227). 
Eddins argues the district court erroneously applied the doctrine of judicial estoppel in 
this case. We agree. Judicial estoppel is intended to prevent abuse of the judicial process “by 
deliberate shifting of positions.” Lawrence, 146 Idaho at 900, 204 P.3d at 540 (emphasis added). 
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Eddins’ failure to challenge the validity of the assignments prior to trial is not equivalent to 
taking a position and then changing course later in proceedings. Further, although not 
acknowledged by the district court, Eddins’ amended answer specifically denied paragraph 3 of 
MRS’s complaint. Paragraph 3 states “. . . before the commencement of this action the debt 
herein sued upon was assigned by [IEP] and [IA] to [MRS] for the purpose of collection. [MRS] 
is now the holder thereof for such purposes.” Thus, although Eddins did not raise specific 
arguments related to the assignments at summary judgment, it was erroneous to conclude Eddins 
took inconsistent positions on the issue when he plainly denied that the assignments were valid 
in his responsive pleading.  
Finally, “standing is jurisdictional and may be raised at any time.” Koch v. Canyon Cnty., 
145 Idaho 158, 162, 177 P.3d 372, 376 (2008); See also Houpt v. Wells Fargo Bank, Nat. Ass’n, 
160 Idaho 181, 186, 370 P.3d 384, 389 (2016) (recognizing that a challenge to a party’s standing 
as the real party in interest can be raised “at any time.”). Eddins was permitted to challenge 
MRS’s standing in the case “at any time,” including during the trial. Thus, the district court’s 
application of judicial estoppel as grounds for reversal was erroneous. 
 The validity of the assignments was not “deemed established” at summary judgment.  
2.
Next, Eddins argues “[t]he district court’s application of judicial estoppel effectively gave 
MRS its ‘deemed established’ contention argued in its appeal brief.” Apparently MRS argued in 
its appeal to the district court that Eddins’ failure to contest standing during MRS’s motion for 
summary judgment deemed standing “established” for purposes of that issue at trial. Regrettably, 
Eddins did not include any briefing submitted to the district court with the record on appeal; 
thus, we are unable to discern what arguments gave rise to this conclusion. We recognize that 
Eddins did request these documents in his notice of appeal, however, ultimately he did not 
ensure they were included with the record on appeal. As we note above, see supra, n.1, it is well 
established that “[t]he appellant has the obligation to provide a sufficient record to substantiate 
his or her claims on appeal.” Indian Springs LLC v. Indian Springs Land Inv., LLC, 147 Idaho 
737, 751, 215 P.3d 457, 471 (2009) (quoting W. Cmty. Ins. Co. v. Kickers, Inc., 137 Idaho 305, 
306, 48 P.3d 634, 635 (2002)). This Court will not presume error below in the absence of a 
record that is adequate to review the appellant’s claims. Id.; see also Dep’t of Fin., Sec. Bureau 
v. Zarinegar, 167 Idaho 611, 627, 474 P.3d 683, 699 (2020) (quoting State v. Garcia-Rodriguez, 
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162 Idaho 271, 276, 396 P.3d 700, 705 (2017) (We do not presume error on appeal; the party 
alleging error has the burden of showing it in the record.”). 
Still, when “the challenged conduct is likely to evade judicial review and thus is capable 
of repetition,” State v. Vasquez, 163 Idaho 557, 560, 416 P.3d 108, 111 (2018), it is appropriate 
for this Court to comment – and we will do so here. This issue is likewise intertwined with the 
judicial estoppel issue and thus merits our comment. We take this opportunity to reiterate that a 
lower court’s denial of summary judgment, by itself, does not establish any facts for trial. The 
magistrate court focused solely on the reasonableness of medical charges at summary judgment. 
That does not, in any way, deem all other issues or facts, particularly issues not raised at that 
time, established for trial.  
Beyond that, as Eddins argues, MRS could have sought an order under Idaho Rule of 
Civil Procedure 56(f), stating the assignment issue was not genuinely in dispute so it could be 
treated as established for trial. MRS failed to do so. Rule 56(f) provides: “If the court does not 
grant all the relief requested by the motion [for summary judgment], it may enter an order stating 
any material fact, including an item of damages or other relief, that is not genuinely in dispute 
and treating the fact as established in the case.” I.R.C.P. 56(f). When the trial court has specified 
facts that are without substantial controversy, they “shall be deemed established, and the trial 
shall be conducted accordingly.” Coeur d’Alene Mining Co. v. First Nat. Bank of N. Idaho, 118 
Idaho 812, 820, 800 P.2d 1026, 1034 (1990) (quoting what was then codified as I.R.C.P. 56(d)).  
MRS did not ask for, nor did the magistrate court enter, any such order. Additionally, 
unlike Coeur d’Alene Mining Company, where the trial court specifically held two facts were 
deemed established for trial, the magistrate court’s denial of summary judgment here did not 
establish any facts related to the legitimacy of the assignments from IEP or IA to MRS. The only 
fact Eddins affirmatively conceded at summary judgment was that he received services from IEP 
and IA. Once MRS’s motion for summary judgment was denied, the entire case went to trial, 
including whether MRS had standing to assert rights on behalf of the medical providers. Further, 
as noted above, “standing is jurisdictional and may be raised at any time.” Koch, 145 Idaho at 
162, 177 P.3d at 376. Whether MRS received a valid assignment of the claims from IEP or IA 
goes directly to MRS’s standing in the case, and Eddins was not precluded from objecting to 
MRS’s proof of standing offered at trial.  
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B. 
We affirm the district court’s holding that the magistrate court abused its 
discretion by limiting the admission of Exhibit 2. However, the district court 
erred regarding Exhibit 6.  
A primary question we must resolve in this appeal is whether to affirm the district court’s 
conclusion that the magistrate court abused its discretion in not admitting Exhibits 2 and 6 for all 
purposes. The district court held that both “Exhibits 2 and 6 should have been admitted for all 
purposes based upon the testimony of Ms. Finuf and Taylor Lugo.” The district court’s opinion 
offers little reasoning for this conclusion. While the district court’s appellate opinion makes 
reference to the four-prong abuse of discretion standard in its iteration of the standard of review, 
the court failed to analyze which of these prongs the magistrate court abused in failing to admit 
Exhibits 2 and 6 for all purposes.  
“There are generally two issues regarding the admission of evidence. The first is whether 
the evidence is relevant, and the second is whether a proper foundation has been laid for its 
admission.” Slack v. Kelleher, 140 Idaho 916, 921, 104 P.3d 958, 963 (2004). These are two 
separate issues. Relevance is an issue of law. Id. (citing State v. Page, 135 Idaho 214, 16 P.3d 
890 (2000)). Whether or not a proper foundation has been laid for the admission of the evidence 
is a discretionary decision to be made by the trial court. Id. (citing State v. Sheahan, 139 Idaho 
267, 77 P.3d 956 (2003)). As noted above, we apply the four-prong Lunneborg test in 
determining whether the trial court abused its discretion. See Lunneborg, 163 Idaho at 863, 421 
P.3d at 194. 
There is no question that Exhibits 2 and 6 are both potentially relevant to MRS’s claims. 
In addition to being relevant, the documents must be authentic. “To satisfy the requirement of 
authenticating or identifying an item of evidence, the proponent must produce evidence 
sufficient to support a finding that the item is what the proponent claims it is.” I.R.E. 901(a). 
Authentication of a writing may be made by a witness with knowledge – that “an item is what it 
is claimed to be.” I.R.E. 901(b)(1).  
 Exhibit 2 was authenticated by Ms. Finuf and was admissible for all purposes. 
1.
Although the district court cited Rule 901, its limited analysis failed to resolve whether 
either Exhibit 2 or 6 was ultimately authenticated. The court simply made the conclusory 
statement that both “Exhibits 2 and 6 should have been admitted for all purposes based upon the 
testimony of Ms. Finuf and Taylor Lugo.” While we conclude that the district court’s conclusion 
as to Exhibit 2 is correct, the scant analysis requires that we, notwithstanding our standard of 
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review to simply review the district court’s opinion “as a matter of procedure,” determine 
whether the magistrate court abused its discretion in failing to admit Exhibit 2 for all purposes.  
The 
admissibility 
of 
a document as 
evidence 
requires 
laying 
a foundation for 
its 
admissibility by 
preliminary 
authentication 
of 
the document on sufficient prima facie proof, whether by direct or circumstantial 
evidence. Authenticity is a preliminary matter for the court to decide, in the trial 
court’s discretion, as a question of fact. Once a prima facie case for authenticity of 
proffered evidence is established, the evidence is admitted and the ultimate 
question of authenticity is decided by the fact finder. 
32A C.J.S. Evidence § 1069 (footnotes omitted).  
Here, the magistrate court admitted Exhibits 2 and 6 for a limited reason to show MRS 
had relied on them, but not for all purposes. “All purposes” would include using the documents’ 
contents to prove that Eddins’ accounts were properly assigned to MRS. While the magistrate 
court did not cite to Idaho Rule of Evidence 104(b), we conclude that the rule is implicated in its 
decision. Rule 104(b) provides that “[w]hen the relevance of evidence depends on whether a fact 
exists, proof must be introduced sufficient to support a finding that the fact does exist. The court 
may admit the proposed evidence on the condition that the proof be introduced later.” A review 
of the transcript and the magistrate court’s oral rulings regarding both exhibits leads this Court to 
conclude that the magistrate court admitted the exhibits conditionally pursuant to Rule 104, with 
the expectation, as promised by MRS’s counsel, that MRS would call additional witnesses to 
establish that Finuf and Waddell had actual authority to assign IEP and IA’s claims to MRS. 
While MRS promised to produce witnesses (in addition to the testimony offered by 
Lugo) to shore-up the agency meant to be established by both exhibits, it only called Finuf to 
testify about Exhibit 2. On appeal, MRS contends that once both exhibits were admitted they 
should have been considered for all relevant purposes. This argument misinterprets the 
magistrate court’s rulings made during the trial. The magistrate court admitted both exhibits 
conditionally, and their admissibility for all purposes depended on “the condition that the proof 
be introduced later.”  See I.R.E. 104(b). Thus, the question, as to Exhibit 2 is whether that proof 
did come later, and whether the magistrate court abused its discretion in failing to admit Exhibit 
2 based on that proof. The district court’s statement that the magistrate court’s admission of 
Exhibits 2 and 6 for a limited purpose “would imply that a proper foundation was laid” is an 
erroneous statement of law. That foundation, in the magistrate court’s discretion, could only be 
made once MRS presented the additional evidence it had promised. 
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Our focus on appeal is thus on the third prong of the abuse of discretion test: whether the 
magistrate court “acted consistently with the legal standards applicable to the specific choices 
available to it,” see Lunneborg, 163 Idaho at 867, 421 P.3d at 198, in refusing to admit Exhibit 2 
for all purposes after Finuf testified.  
We begin by noting that Lugo’s testimony, as the president of MRS, was insufficient to 
authenticate Exhibit 2 on its own. It was during this initial testimony that MRS attempted to 
admit both Exhibits 2 and 6. The following discussion took place: 
COUNSEL FOR EDDINS: I have a problem with foundation, Your Honor. I’ll 
allow it in for the limited purpose of them having relied on it. 
THE COURT: [COUNSEL FOR MRS], do you want to respond? 
COUNSEL FOR MRS:  Your Honor, I will – Kerrie Finuf is here and I will – 
we’ll go over that when she testifies. But for – so at the moment I’m okay with it 
being allowed for the limited purpose of showing they relied on it. 
THE COURT: Very well. The [c]ourt will allow [Exhibit 2] at this point for that 
limited purpose. 
Thus, MRS essentially stipulated that Lugo’s testimony alone was insufficient to admit 
Exhibit 2 for all purposes. The magistrate court admitted the exhibit during Lugo’s testimony for 
a limited purpose based on MRS’s counsel’s assurance. In addition, Lugo’s signature does not 
appear on the document and the fact that Exhibit 2 bore MRS’s business address at the top of it is 
of no moment. Thus, the district court erred in relying on Lugo’s testimony as a basis to admit 
the exhibit.  
That said, MRS did, as promised, present testimony from Finuf. Her testimony included 
the following exchange: 
Q. [by counsel for MRS]. . . . A moment ago we discussed – it was labeled as 
Exhibit 2, which was the Assignment of Account document that – which you 
signed. Are you familiar with that document? 
A. Yes. 
Q. I guess the pending – looming question is out there, do you have authorization 
as agent for Intermountain Emergency Physicians to sign those assignments of 
account? 
[Counsel for Eddins]: Objection, conclusion. . . . Lacks foundation. 
. . . . 
Q. Kerrie, can you explain -- can you tell us a little of your background with 
Intermountain Emergency Physicians? 
13 
 
A. Yes. I’ve worked for the doctors for l4 years. I am their business office 
manager and I work directly with our billing group in Oklahoma City. 
Q. Okay. As such, are you familiar with all of the billing statements, the 
documents that [IEP] sends out either directly or through their billing company? 
A. Yes. 
Q. Who authorizes the assignment of accounts to [MRS] for [IEP]? 
A. I do. 
Q. So in your position over the last 16 [sic] years, you’ve been giving the – given 
the authority to assign those accounts as needed? 
A. Yes. My doctors put me charge of all the business aspects of our company.  
Q. Okay. Thank you. So with that foundation, Kerrie, are you – obviously, are 
you the authorized account assignor in this case? 
A. I would say yes, I am. 
Based on this testimony it is established that Finuf was a person “with knowledge” 
sufficient to authenticate Exhibit 2. I.R.E. 901(a). MRS needed “only make a prima facie 
showing of authenticity so that a reasonable [fact-finder] could find in favor of authenticity or 
identification. . . . Once the prima facie case for authenticity is met, the probative value of the 
evidence is a matter for the [fact-finder]. United States v. Workinger, 90 F.3d 1409, 1415 (9th 
Cir. 1996) (internal citations and quotations omitted). Thus, once authenticated, Exhibit 2 was 
admissible.  
The magistrate court abused the third prong of its discretion by requiring additional proof 
in the form of (1) testimony from an officer or owner of IEP; or (2) additional documentation 
establishing Finuf’s authority to sign agreements on IEP’s behalf in order to admit the exhibit. 
While such testimony would have given greater weight to Finuf’s testimony regarding her status 
as IEP’s agent, (which question was left to the magistrate court as fact-finder on the merits, as 
will be discussed below) such evidence was not required to authenticate Exhibit 2 for purposes 
of its admissibility. The magistrate court’s failure to admit the evidence based on that erroneous 
factual prerequisite was clearly erroneous. See Latvala v. Green Enterprises, Inc., 168 Idaho 686, 
___, 485 P.3d 1129, 1137 (2021) (“The Court will not set aside the trial court’s findings of fact 
unless they are clearly erroneous . . . .”).  
 Exhibit 6 was never authenticated and was thus inadmissible. 
2.
14 
 
The admissibility of Exhibit 6 is much different than Exhibit 2. Once again, the exhibit 
was admitted pursuant to Idaho Rule of Evidence 104(b), subject to the introduction of additional 
proof. However, that proof never came. Of note, Jennifer Waddell, whose signature appears on 
Exhibit 6 never testified, nor did any other officer or agent of IA. As stated above, the testimony 
of Lugo was insufficient to authenticate the document. The magistrate court’s decision to limit 
the document’s admission was based on the promise of MRS’s counsel that he would “follow up 
with . . . [E]xhibit [6] with an additional witness later.” That promise never materialized. Thus, 
the district court erred in holding that Lugo and Finuf provided adequate foundation for Exhibit 
6. Without any witness, other than Lugo, and without any direct proof of the assignment, the 
magistrate court was correct to limit Exhibit 6’s admissibility. 
C. 
We affirm the district court’s holding that MRS was IEP’s agent for purposes of 
prosecuting this case. We reverse the district court’s decision regarding IA’s 
claim. 
Having determined that Exhibit 2 should have been considered for all purposes, but that 
Exhibit 6 should not, we turn now to whether the district court was correct to hold that 
substantial evidence supports the agency relationship between MRS and the two medical entities.  
“This Court has previously viewed the question of whether an agency relationship exists 
as a question of fact for the [trier of fact] to determine.”  Nelson v. Kaufman, 166 Idaho 270, ___, 
458 P.3d 139, 145 (2020) (quoting Humphries v. Becker, 159 Idaho 728, 735 n.2, 366 P.3d 1088, 
1095 n.2 (2016)). But even though that is obviously the case, “whether a given set of facts are 
sufficient to constitute an agency relationship is a question of law appropriate for this Court’s 
consideration.” Id. This is simply a restatement of the black-letter principle that this Court 
reviews the sufficiency of the evidence to determine whether a fact-finder, here the magistrate 
court, made a legally sound decision based upon the record before it. “Substantial evidence does 
not require that the evidence be uncontradicted. . . . Rather, the evidence need only be of 
sufficient quantity and probative value that reasonable minds could conclude that the [fact-
finder’s conclusion] was proper.” SilverWing at Sandpoint, LLC v. Bonner Cnty., 164 Idaho 786, 
794, 435 P.3d 1106, 1114 (2019). 
 The magistrate court gave no weight to Exhibit 2. It determined that Finuf’s testimony 
was insufficient to establish that the account from IEP had been validly assigned to MRS 
because “she could not identify any document, any person or any circumstance wherein she was 
15 
 
specifically authorized to make legal assignments for purposes of lawsuits. [And] no principal of 
[IEP] testified as to having given her that authority.” The magistrate court relied on Brunette v. 
Idaho Veneer Company, 86 Idaho 193, 384 P.2d 233 (1963), in which this Court held: 
The apparent power of an agent is to be determined by the acts of the principal, 
and not by the acts of the agent; a principal is responsible for the acts of an agent 
within his apparent authority only where the principal by his acts or conduct has 
clothed the agent with the appearance of authority, and not where the agent’s own 
conduct and statements have created the apparent authority. 
 
Id. at 198–99, 384 P.2d at 236 (citing 3 Am. Jur. 2d, Agency, § 74, p. 476). 
In addition, as has been noted about Exhibit 6, the magistrate court remarked that it 
received no testimony or evidence from any officer or director of IA regarding the granting of 
authority or agency to Jennifer Waddell to make assignments for IA, nor did Waddell testify. 
Thus, the court determined it did not have adequate information to establish a valid assignment 
from IA to MRS.  
After declining to admit the exhibits beyond their stated “limited purpose,” the magistrate 
court held MRS “failed to establish assignment to it of the claims from both Intermountain 
Emergency Physicians and Intermountain Anesthesia.”  
On intermediate appeal, the district court found Brunette to be distinguishable because it 
involved apparent authority where the principal showed no outward signs of cloaking the 
supposed agent in authority. Conversely, here, the district court found that IEP held Finuf out as 
its agent with actual authority – by putting her in charge of all business matters and allowing her 
to make assignments of accounts similar to Eddins’ for nearly 14 years. Actual authority “is that 
authority a principal expressly grants to an agent or impliedly confers on an agent because it is 
usual, necessary, and proper to achieve the object of the express authority granted to the agent.” 
Primera Beef, LLC v. Ward, 166 Idaho 180, ___, 457 P.3d 161, 166 (2020) (internal quotation 
omitted). 
The district court’s holding was based on Finuf’s own testimony that “[her] doctors put 
[her] in charge of all the business aspects of [IEP]” and that she had been in her position for the 
last 14 years. Her testimony as set forth above establishes the district court’s legal conclusion by 
substantial evidence.  
The district court found the more applicable case to be Simplot Soilbuilders, Inc. v. 
Leavitt, 96 Idaho 17, 523 P.2d 1363 (1974), in which this Court held: 
16 
 
While an agency relation cannot be proved by the extra-judicial statements and 
declarations of one purporting to act as agent, the fact of agency, when it rests in a 
parol agreement, may be established at trial by the testimony of the agent 
h[er]self. The agent’s extra-judicial statements are mere hearsay, but at trial the 
agent’s testimony concerns [her] relationship to the alleged principal. The 
relationship being in issue and the witness being subject to cross-examination, the 
agent’s testimony cannot be termed hearsay. 
Id. at 18, 523 P.2d at 1364 (citing Killinger v. Iest, 91 Idaho 571, 576, 428 P.2d 490, 495 
(1967)).  
The district court appropriately applied Simplot Soilbuilders to the question before it. An 
agent’s actual authority may be established by her direct testimony. Finuf did just that in this 
case. She testified that in her role as office manager with 14-years’ experience at IEP, Finuf had 
actual authority to enter contracts on IEP’s behalf. Nothing contradicted her testimony and the 
magistrate court’s reliance on Brunette, an apparent authority case, was misplaced. Brunette 
remains good law for the proposition for which it stands: an agent’s apparent authority may not 
be established by the testimony of the agent alone. See Brunette, 86 Idaho at 198–99, 384 P.2d at 
236. On the other hand, an agent herself may establish actual authority based on her direct 
testimony. Thus, we conclude, as a matter of law, that substantial evidence in the record 
established Finuf’s authority to assign Eddins’ account to MRS. The district court correctly 
found that Finuf was an agent of IEP. As an agent of IEP, she had the requisite authority to 
imbue MRS with authority and standing to pursue IEP’s claims against Eddins. We affirm the 
district court’s holding that sufficient evidence supported the agency relationship between MRS 
and IEP.  
The district court’s decision as to IA’s claim, however, is reversed. Without the full 
weight of Exhibit 6 and any testimony from Waddell or someone with direct knowledge of IA’s 
business structure, IA’s assignment of its claim to MRS was never established. MRS thus lacked 
standing to bring the IA’s claims against Eddins and those claims were properly dismissed.  
D. 
Issues upon remand. 
Given our holding in this case, we remand this case to the district court with the 
following directions: 
1. Reinstate the judgment in Eddins’ behalf against MRS as to IA’s claims. 
2. Remand the case to the magistrate court with directions for the magistrate 
court to (1) make additional findings as to the reasonableness of IEP’s 
17 
 
charges. This determination is to be made on the record from the original trial, 
without taking additional evidence or testimony; (2) rule on which party 
prevailed; and (3) based thereon, revisit the attorney fees originally awarded 
to Eddins, giving due consideration for his prevailing on this appeal as to IA’s 
claims; (4) award Eddins appellate attorney fees incurred in the district court 
appeal as to IA’s claims; (5) based upon its prevailing party finding, 
determine the extent to which either party is entitled to attorney fees from the 
magistrate and district court proceedings; and (6) as set forth below, based on 
that same prevailing party finding, determine whether either party is entitled 
to its attorney fees incurred on appeal.  
E. 
Eddins is awarded attorney fees as to IA’s claims; neither party is entitled to 
attorney fees and costs on appeal regarding IEP’s claims. 
Both parties request attorney fees and costs on appeal under Idaho Code section 12-
120(1) and (3). Since we have reinstated the original judgment against IA’s claims assigned to 
MRS, Eddins has prevailed as to that claim and is awarded attorney fees on appeal against IA. 
Eddins will be entitled to one-half of his appellate attorney fees and costs for his appeal to this 
Court. 
However, as to IEP’s claims that were assigned to MRS, we have generally held that all 
claims in an action must be resolved before a court may determine the prevailing party. Berian v. 
Berberian, 168 Idaho 394, ___, 483 P.3d 937, 954 (2020); but see Lola L. Cazier Revocable Tr. 
v. Cazier, 167 Idaho 109, 123, 468 P.3d 239, 253 (2020) (awarding apportioned attorney fees on 
appeal to the respondent, even though the case was remanded for the district court to resolve one 
simple issue). Still, this Court has generally declined to award attorney fees on appeal when the 
case is remanded for further proceedings. See Porcello v. Estate of Porcello, 167 Idaho 412, ___, 
470 P.3d 1221, 1237 (2020). This is particularly applicable to the case here, where this matter is 
being remanded to the magistrate court (as set forth above). 
We thus decline to award attorney fees at this juncture as to IEP’s claim. Upon the 
magistrate court’s entry of a final judgment deciding MRS’s remaining (IEP) claim below, the 
magistrate court can determine which party has prevailed and whether that party is entitled to 
attorney fees related to this appeal. Berian, 168 Idaho at ___, 483 P.3d at 954.  
IV. CONCLUSION 
We affirm the district court’s decision on the magistrate court’s abuse of discretion in 
limiting the admission of Exhibit 2. We likewise affirm the district court’s conclusion about 
18 
 
IEP’s standing in this case. We reverse all other issues as set forth above. We award Eddins’ 
attorney fees and costs as to IA’s claims as set forth above. 
JUSTICES BRODY, STEGNER MOELLER and BURDICK, CONCUR.