Opinion ID: 1179761
Heading Depth: 2
Heading Rank: 2

Heading: Attorney Fees Under the Confirmation Motion

Text: Attorney fees, unlike costs and prejudgment interest, may not be awarded by the arbitrator. I.C. § 7-910; Bingham County Comm'n v. Interstate Elec. Co., 105 Idaho 36, 42, 665 P.2d 1046, 1052 (1983) (holding that I.C. § 7-910 specifically excludes attorney fees from the scope of power given to the arbitrator to award expenses and fees incurred during arbitration). However, this Court has held that the limit on the arbitrator's power to award attorney fees in arbitration does not restrict the court's power in a lawsuit filed to collect amounts due under an insurance policy to award attorney fees incurred during arbitration pursuant to I.C. § 41-1839. See Emery v. United Pac. Ins. Co., 120 Idaho 244, 246, 815 P.2d 442, 444 (1991). Wolfe argues that he is entitled to attorney fees incurred during arbitration under his motion to the district court for confirmation of the arbitration award. Wolfe contends that when an insured is required to enter into arbitration under his insurance contract, due to his insurance company's failure to pay what is justly due, then he is entitled to attorney fees under Idaho Code § 41-1839. Wolfe cites Emery and Walton v. Hartford Ins. Co., 120 Idaho 616, 818 P.2d 320 (1991), as authority for his argument. We disagree with Wolfe's assertions. Neither Emery nor Walton is helpful or instructive to the resolution of the present case. Idaho Code 41-1839 provides for the award of attorney fees if the insurance company fails to pay an amount justly due under the policy within thirty days after proof of loss. But, before an insured can recover attorney fees under the statute, an action in court must be brought to recover under the terms of the insurance policy. I.C. § 41-1839; see Pendlebury v. Western Casualty & Sur. Co., 89 Idaho 456, 465, 406 P.2d 129, 134 (1965) (An insurer which fails for a period of thirty days after proof of loss to pay the person entitled thereto the amount justly due under the policy, shall in any action thereafter pay such further amount as the court shall adjudge reasonable as attorney's fees in such action.). In both Emery and Walton, suits were filed in court prior to arbitration, which brought those cases squarely within the purview of I.C. § 41-1839. In the present case, a motion for confirmation of an arbitration award is being used as the vehicle to assert a claim for attorney fees where no prior court action was filed. No Idaho Supreme Court case has previously addressed the issue of whether a motion for confirmation of an arbitration award constitutes an action in court to recover attorney fees incurred in arbitration under I.C. § 41-1839. Not only is this a case of first impression, but additionally we are presented with conflicting provisions of the Idaho Code, neither of which contemplated the present situation; I.C. § 41-1839 and the UAA, I.C. §§ 7-901-922. In 1961, the Idaho Legislature enacted the Idaho Insurance Code. I.C. §§ 41-101 to 5006. The Idaho Insurance Code provides for attorney fees when an insured is required to file a court action to recover under the terms of the insurance policy. I.C. § 41-1839. Under the UAA, I.C. §§ 7-901-922, which was enacted by the Idaho Legislature in 1975, attorney fees are not awardable by the arbitrators during arbitration. I.C. § 7-910. The Idaho legislature did not reconcile the UAA with the Idaho Insurance Code or address how to resolve the situation where an insurance contract provides for arbitration under the policy. Where the statutory language is unambiguous, this Court is to give effect to the clear expressed intent of the legislature and is not to engage in statutory construction. Ada County Assessor v. Roman Catholic Diocese, 123 Idaho 425, 428, 849 P.2d 98, 101 (1993). Pursuant to the UAA, this Court is required to construe the provisions of the UAA so as to effectuate its general purpose to make uniform the law of those states which enact it. I.C. § 7-921. Since no assistance is provided by the legislature as to how to reconcile these provisions of the Idaho Code, this Court must turn to its rules of statutory construction. Statutory interpretation begins with the literal words of the statute, giving the language of the statute its plain, obvious, and rational meanings. Grand Canyon Dories v. Tax Comm'n, 124 Idaho 1, 5, 855 P.2d 462, 466 (1993). Section 41-1839, of the Idaho Insurance Code provides in relevant part: (1) Any insurer issuing any policy, certificate or contract of insurance, surety, guaranty or indemnity of any kind or nature whatsoever, which shall fail for a period of thirty (30) days after proof of loss has been furnished as provided in such policy, certificate or contract, to pay to the person entitled thereto the amount justly due under such policy, certificate or contract, shall in any action thereafter brought against the insurer in any court in this state for recovery under the terms of the policy, certificate or contract, pay such further amount as the court shall adjudge reasonable as attorney's fees in such action. (2) In any such action, if it is alleged that before the commencement thereof, a tender of the full amount justly due was made to the person entitled thereto, and such amount is thereupon deposited in the court, and if the allegation is found to be true, or if it is determined in such action that no amount is justly due, then no such attorney's fees may be recovered.