Opinion ID: 874110
Heading Depth: 2
Heading Rank: 2

Heading: The district court erred by awarding the parties all attorney fees incurred in the litigation.

Text: This Court addressed the standard of review governing a district court's award of attorney fees in Henderson v. Henderson Investment Properties, L.L.C., 148 Idaho 638, 227 P.3d 568 (2010): When reviewing a trial court's award of attorney fees, this court applies an abuse of discretion standard. To determine whether there is an abuse of discretion this Court considers whether (1) the court correctly perceived the issue as one of discretion; (2) the court acted within the boundaries of such discretion and consistently with legal standards applicable to specific choices; and (3) the court reached its decision by an exercise of reason. Id. at 639-40, 227 P.3d at 569-70 (quoting Lee v. Nickerson, 146 Idaho 5, 9, 189 P.3d 467, 471 (2008)) (internal citations omitted). The district court observed that neither party objected to the amount of claimed fees and costs. (Emphasis original). The court then held that in the absence of some specific objection to the cost bills, the Court concludes that the costs of right and attorney fees claims shall be awarded to each party as requested. In determining which party to an action is a prevailing party and entitled to costs, the trial court shall in its sound discretion consider the final judgment or result of the action in relation to the relief sought by the respective parties. The trial court in its sound discretion may determine that a party to an action prevailed in part and did not prevail in part, and upon so finding may apportion the costs between and among the parties in a fair and equitable manner after considering all of the issues and claims involved in the action and the resultant judgment or judgments obtained. I.R.C.P. 54(d)(1)(B) (emphasis added). Thus, although the district court had discretion to award costs and fees to both Schroeder and Partin as prevailing parties, the court had a duty to apportion to each of the parties only the attorney fees related to the claims upon which each party prevailed. Ramco v. H-K Contractors, Inc., 118 Idaho 108, 113, 794 P.2d 1381, 1386 (1990) (the claims should be severed and costs analyzed separately for each.). The trial court's decision to award all attorney fees incurred by each party in connection with the litigation, without attempting to apportion those fees based upon the respective claims upon which each party prevailed, was inconsistent with the governing legal standard. Thus, the district court abused its discretion. We vacate the district court's award of attorney fees and remand for the district court to apportion attorney fees and costs consistent with the requirement of I.R.C.P. 54. The prevailing party in a civil action to recover on a commercial transaction shall be allowed a reasonable attorney's fee to be set by the court, to be taxed and collected as costs. I.C. § 12-120(3). Both parties acknowledge that this action flows from a commercial transaction. Schroeder is the prevailing party on appeal and therefore entitled to attorney fees pursuant to I.C. § 12-120(3). Partin did not prevail in this appeal and is therefore not entitled to an award of attorney fees.