Opinion ID: 2520675
Heading Depth: 2
Heading Rank: 3

Heading: Did the District Court Err in Awarding the Benscoters Attorney Fees?

Text: The district court awarded the Benscoters attorney fees pursuant to Idaho Code § 12-120(3), which provides: In any civil action to recover on an open account, account stated, note, bill, negotiable instrument, guaranty, or contract relating to the purchase or sale of goods, wares, merchandise, or services and in any commercial transaction unless otherwise provided by law, the prevailing party shall be allowed a reasonable attorney's fee to be set by the court, to be taxed and collected as costs. The district court held that the Benscoters were the prevailing party on Bream's complaint and that they were entitled to an award of attorney fees for defending against that claim. Bream argues that the district court abused its discretion because it failed to consider that Bream prevailed on the Benscoters' counterclaim. The determination of who is a prevailing party is committed to the sound discretion of the trial court, and we will not disturb that determination absent an abuse of discretion. Bolger v. Lance, 137 Idaho 792, 53 P.3d 1211 (2002). To prove an abuse of discretion, this Court applies the three-factor test. The three factors are: (1) whether the trial court correctly perceived the issue as one of discretion; (2) whether the trial court acted within the boundaries of this discretion and consistent with the legal standards applicable to the specific choices available to it; and (3) whether the trial court reached its decision by an exercise of reason. Fox v. Mountain West Elec., Inc., 137 Idaho 703, 52 P.3d 848 (2002). In this case, only the Benscoters requested an award of attorney fees. When considering whether they were prevailing parties, the district court stated, When there are multiple claims, counterclaims, etc., each claim may be examined individually in addition to looking at the overall result. If it becomes apparent a party has prevailed on a particular claim or claims, the court may, in its discretion, apportion an award in a fair and equitable manner. The district court did not err in considering the parties' respective claims separately when deciding whether the Benscoters were prevailing parties. Ramco v. H-K Contractors, Inc., 118 Idaho 108, 794 P.2d 1381 (1990). The district court also found that the core issue in this case was Bream's claim to collect on the alleged guaranty of the promissory note. The Benscoters' counterclaims for fraud and intentional infliction of emotional distress were based upon Bream's conduct in attempting to collect on the alleged guaranty. The district court did not abuse its discretion in concluding that the Benscoters were the prevailing parties on Bream's complaint. The district court awarded the Benscoters the sum of $5,000 as a reasonable attorney fee for defending against the complaint. It concluded that the Benscoters were entitled to an award of attorney fees under Idaho Code § 12-120(3) for defending against the complaint because this was an action to recover in a commercial transaction and because it was an action to recover on a note. Bream alleges that the district court erred because there was no commercial transaction between him and the Benscoters. Bream does not challenge on appeal the district court's alternative holding that this was an action to recover on a note. Attorney fees are awardable under Idaho Code § 12-120(3) for successfully defending against an action to recover on a note. Spidell v. Jenkins, 111 Idaho 857, 727 P.2d 1285 (Ct.App.1986). Thus, we will not consider whether the district court erred in holding that this was an action on a commercial transaction because even if that was in error, Bream has not challenged the district court's alternative holding that this was an action to recover on a note. [1]