Opinion ID: 4105752
Heading Depth: 1
Heading Rank: 6

Heading: attorney’s fees and costs on appeal

Text: Both parties request attorney’s fees and costs on appeal. Appellants assert that they are entitled to costs and attorney’s fees pursuant to the Operating Agreement, which provides for reasonable costs and attorney’s fees if a person covered under the Operating Agreement successfully defends a claim on its merits arising from the Operating Agreement. Respondents counter that because Hodge breached his fiduciary duty to Source 1, he committed “Disabling Conduct” that disqualifies him from being covered by the Operating Agreement even if Appellants prevail on appeal. Respondents further assert that they are entitled to attorney’s fees pursuant to Idaho Code section 12-120(3) as the prevailing party on appeal. We hold that Respondents are the prevailing party; thus, costs and attorney’s fees on appeal are awarded to Respondents.