Opinion ID: 1218992
Heading Depth: 1
Heading Rank: 7

Heading: the award of costs and attorney fees is remanded for reconsideration

Text: The Van Ordens argue the trial court erred in awarding Ervin two-thirds of its requested attorney fees and all of its costs of right. The trial court noted that it was required to look at the entire case to determine the prevailing party. The court then stated it had made a careful analysis of this case and concluded that Ervin did not prevail one-hundred percent but had generally prevailed. A prevailing party is entitled to costs as a matter of right. I.R.C.P. 54(d)(1). The trial court is vested with broad discretion to determine the prevailing party in a multiple claim action. I.R.C.P. 54(d)(1)(B); International Eng'g Co. v. Daum Indus., Inc., 102 Idaho 363, 366, 630 P.2d 155, 158 (1981). A court may also award reasonable attorney fees to the prevailing party in any civil action when provided for by statute or contract. I.R.C.P. 54(e)(1). Idaho Code § 12-120(3) requires the award of reasonable attorney fees to the prevailing party of a commercial transaction. However, a court is not required to award reasonable attorney fees every time a commercial transaction is connected with a case. Brower v. E.I. DuPont De Nemours & Co., 117 Idaho 780, 784, 792 P.2d 345, 349 (1990). The critical test is whether the commercial transaction comprises the gravamen of the lawsuit; the commercial transaction must be integral to the claim and constitute the basis upon which the party is attempting to recover. Id. In the present case, the gravamen of this lawsuit was a commercial transaction; the alleged breach of a construction contract between Ervin and the Van Ordens. The trial court was required to award costs and attorney fees if, in its sound discretion, it determined a particular party prevailed. While we will not ordinarily overturn a valid exercise of discretion by our district courts, in light of our holding today, we are reversing the trial court's award of costs and attorney fees and remanding this issue back to the trial court for its consideration along with its recalculation of the Van Ordens' damages. In doing so, we are expressing no opinion as to a prevailing party or an appropriate award of costs and attorney fees.