Opinion ID: 1401421
Heading Depth: 1
Heading Rank: 2

Heading: binghams' claims on appeal

Text: The Binghams' claim that the district judge improperly awarded fees under I.C. § 45-413 is based on a number of arguments. The central argument, however, is that Montane's loggers' lien was invalid and as such, had the lien been examined, Montane would not have been able to foreclose on the lien and Montane would have had no basis for an award of attorney fees under I.C. § 45-413. Ultimately, the Binghams' claim focuses on interpreting I.C. § 45-413 to determine whether fees under that statute are properly awarded given the facts of the case. When a dispute centers around whether the district judge properly awarded attorney fees under a statute in the first instance, the Court exercises free review. The determination of the meaning of a statute and its application is a matter of law. J.R. Simplot Co., v. Western Heritage Ins. Co., 132 Idaho 582, 583, 977 P.2d 196, 197 (1999).
Montane made its request for attorney fees by asserting a counterclaim for fees in its answer to the Binghams' amended complaint. In the counterclaim, Montane asserted that because it had been necessary for it to retain the services of an attorney, it was then entitled to reasonable attorneys fees pursuant to I.C. §§ 12-120, 12-121 and I.R.C.P. 54. After the district judge's ruling on the Binghams' claims holding that the claims were barred by res judicata, Montane filed a Memorandum of Costs in which it asserted a right to costs as a matter of right, discretionary costs and attorney fees under I.C. §§ 12-121 and 12-120. Specifically, Montane argued that this is a commercial transaction by reason of the logs upon which the disputed lien attached were cut to be sold for commercial purposes and the amount claimed is under $25,000. Additionally, at the hearing on fees and costs, Montane argued for attorney fees based on I.C. §§ 12-120(1), 12-120(3), and 12-121. At no point did Montane assert that it was entitled to fees under I.C. § 45-413. Rather, the district judge awarded fees under I.C. § 45-413 sua sponte, reasoning that because the Binghams' claim was the same as the claim in the foreclosure action against the Greenes and Montane would have been entitled to fees in that earlier action, I.C. § 45-413 applied to the current action. The district judge's underlying assumption that he had the power to award fees on a basis not asserted by Montane is erroneous. In order to be awarded attorney fees, a party must actually assert the specific statute or common law rule on which the award is based; the district judge cannot suasponte make the award or grant fees pursuant to a party's general request. The Idaho Court of Appeals addressed this issue in Fournier v. Fournier, 125 Idaho 789, 791-92, 874 P.2d 600, 602-03 (Ct.App.1994). In Fournier, Barbara Fournier brought a motion to compel Dayton Fournier to comply with a stipulation for a professional evaluation. Barbara also sought attorney fees. The motion did not specify under which statute it was being filed nor did the request for attorney fees state any statute or rule upon which the request was made. After a hearing, the magistrate judge ordered Dayton to comply with the stipulation and also awarded attorney fees, but did not state the basis for the award, only noting that it did so [a]cting as a court of equity. Id. at 790, 874 P.2d at 601. On review, the Court of Appeals stated that in Idaho, there is no equitable authority to award attorney fees generally. Id. at 791, 874 P.2d at 602. The court noted that although attorney fee awards had previously been approved based on the right result/wrong theory rule, due process considerations require additional limitations to the rule. The court stated: At the very least, a statutory or contractual justification for an award of fees must be advanced below by the party seeking such an award. Without such a limitation, a party may be subject to an award against it while being given no opportunity to raise relevant facts or to argue applicable legal principles. The opportunity to be heard and advance legal argument on dispositive issues is essential to proper procedure. Id. The court then held that if a particular statute, rule or contract is not advanced below, it cannot be a basis for upholding an award of attorney fees on appeal. Id. at 792, 874 P.2d at 602-03. While in that case there were various valid post hoc justifications for awarding attorney fees, the court noted that it was not the task of the reviewing court to search out statutory support for the award of fees below; rather, the support must be garnered by the court and counsel at the time the award is requested .... Id. Similarly, this Court has held that where a party does not state the basis for a claim for attorney fees on appeal, the claim will be denied. We stated that I.A.R. 35(a)(5), which requires a statement of the basis for a claim for attorney fees on appeal to be included in the claimant's brief, is necessary in order to allow the responding party a due process opportunity to challenge such claims. Curr v. Curr, 124 Idaho 686, 694, 864 P.2d 132, 140 (1993). We find that the Idaho Court of Appeals' reasoning in Fournier is sound and similarly hold that it is incumbent on the moving party to assert the grounds upon which it seeks an award of attorney fees. The district judge is not empowered to award fees on a basis not asserted by the moving party. As the Fournier court noted, [t]he opportunity to be heard and advance legal argument on dispositive issues is essential to proper procedure. 125 Idaho at 791, 874 P.2d at 602. Accordingly, a request for attorney fees should alert the other party may the basis upon which attorney fees are requested in order that the other party may have a sufficient opportunity to object. Moreover, the district judge cannot award fees, on what he determines to be a correct basis, without providing the nonmoving party with an opportunity to raise relevant facts and legal principles in its defense. Regardless of whether the award would have been proper if the party had requested fees on that basis, it is patently unfair to deprive the opposing party of an opportunity to present arguments against the award. Here, the Binghams were never provided any opportunity to raise a defense to an award of attorney fees under I.C. § 45-413; therefore, we must reverse the award of fees to Montane.
Due to our holding that the district judge erred in awarding attorney fees to Montane pursuant to I.C. § 45-413 sua sponte, we need not reach the Binghams' remaining issues regarding whether, based on the lien in this case, attorney fees could have been awarded under I.C. § 45-413, whether the district judge improperly awarded attorney fees for paralegal services, and whether the district judge abused his discretion as to the amount of fees awarded.

The determination of costs is left to the discretion of the district court. Idaho Dep't of Health v. Southfork Lumber Co., 123 Idaho 146, 149, 845 P.2d 564, 567 (1993). The burden is on the party opposing the award to demonstrate an abuse of the district court's discretion, and absent an abuse of discretion, the district court's award of costs will be upheld. Zimmerman v. Volkswagen of America, Inc., 128 Idaho 851, 857, 920 P.2d 67, 73 (1996).
The Binghams assert that the district judge erred in awarding discretionary costs of $91.96 to Montane because (1) there was no showing that the costs were necessary and exceptional; and (2) upon objection to the costs, the district judge did not make express findings as to why the costs were allowed pursuant to I.R.C.P. 54(d)(1)(D). The district judge found that [t]he discretionary costs of $91.96 under the circumstances of this case, including the out of state residence of defendant, appear to be ordinary and necessary. The district judge improperly awarded discretionary costs in this case because the judge merely determined that the costs appear[ed] to be ordinary and necessary. This is not sufficient; rather, the district judge must make express findings that the costs are exceptional, necessary, reasonably incurred, and should in the interest of justice be assessed against the adverse party. I.R.C.P. 54(d)(1)(D); see also Fuller v. Wolters, 119 Idaho 415, 425, 807 P.2d 633, 643 (1991); Westfall v. Caterpillar, Inc., 120 Idaho 918, 926, 821 P.2d 973, 981 (1991). In addition, upon objection to the discretionary costs claimed by Montane, the district judge did not make express findings as to why such specific item of discretionary cost should or should not be allowed as required by Rule 54(d)(1)(D). The district judge did not determine why each of the specific items of costs for long distance telephone charges, photocopy charges and facsimile transmission charges should be allowed, despite the Binghams' objection to each of the specific charges in its Memorandum to Support a Motion for Disallowance of Claims for Fees and Costs. Therefore, because the district judge did not make the findings required by Rule 54(d)(1)(D) in making an award of discretionary costs, we reverse the award.