Opinion ID: 2625037
Heading Depth: 2
Heading Rank: 3

Heading: Attorney Fees and Discretionary Costs

Text: Washington Federal asserts that the district court improperly denied its request for attorney fees pursuant to I.C. § 12-121 because NMID pursued its claim frivolously and without merit. This Court has held that an award of attorney fees under I.C. § 12-121 is not a matter of right, and is appropriate only when the Court, in its discretion, is left with the abiding belief that the action was pursued, defended, or brought frivolously, unreasonably, or without foundation. Owner-Operator Ind. Drivers Assoc. v. Idaho Public Util. Comm'n, 125 Idaho 401, 408, 871 P.2d 818, 825 (1994). When deciding whether the case was brought or defended frivolously, unreasonably, or without foundation, the entire course of the litigation must be taken into account. Thus, if there is a legitimate, triable issue of fact, attorney fees may not be awarded under I.C. § 12-121 even though the losing party has asserted factual or legal claims that are frivolous, unreasonable, or without foundation. See Turner v. Willis, 119 Idaho 1023, 812 P.2d 737 (1991). The award of attorney fees rests in the sound discretion of the trial court and the burden is on the person disputing the award to show an abuse of discretion. See Anderson v. Ethington, 103 Idaho 658, 651 P.2d 923 (1982). In determining whether the trial court has abused its discretion, we again turn to the three-factor test articulated in Sun Valley Shopping Center, Inc. v. Idaho Power Co., 119 Idaho at 94, 803 P.2d at 1000. Here, the district court expressly recognized in its order awarding costs that it had the discretion to award fees. The court additionally noted that although NMID asserted several factual issues that were without foundation, there remained triable issues of fact concerning the effect Washington Federal's sidewalk and proposed fence on NMID's use of the easement. Washington Federal presents no evidence that the district court's decision was not reached by the exercise of reason. Accordingly, this Court upholds the district court's decision denying attorney fees at trial. For the same reason, we decline to award attorney fees on appeal.
Washington Federal argues that under IRCP 54(d)(1)(D) it should be awarded discretionary costs. Under IRCP 54(d)(1)(D), costs not awarded as a matter of right may be allowed upon a showing that said costs were necessary and exceptional costs reasonably incurred, and should in the interest of justice be assessed against the adverse party. The district court, when ruling on whether such costs should be awarded, is instructed to make express findings as to why each specified item should not be allowed. See IRCP 54(d)(1)(D). The district court's decision is reviewed under the abuse of discretion standard outlined above. See Sun Valley Shopping Center, 119 Idaho at 94, 803 P.2d at 1000. Here the district court's order clearly illustrates that it was aware that it had the discretion to award or deny the discretionary costs. The court made express findings for each of the requested discretionary costs submitted by Washington Federal as required by the statute and ultimately concluded that none of the requested costs was exceptional. Once again, Washington Federal presents no evidence that the district court's decision was not reached by the exercise of reason. Therefore, we uphold the district court's decision denying discretionary costs to Washington Federal.