Justia Consumer Law Opinion Summaries

Articles Posted in Idaho Supreme Court - Civil
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This case involves a dispute between Melissa Sanchez, a tenant, and Chris and Jennifer Pickering, her landlords, over the terms of a lease agreement for a mobile home owned by the Pickerings. Sanchez believed the agreement was a lease-to-own contract, while the Pickerings asserted it was a lease with a purchase option contract. After the Pickerings initiated an eviction action due to Sanchez's alleged violations of the agreement, Sanchez caused extensive damage to the home.The Pickerings sued Sanchez for waste, claiming she caused $40,000 in damages and sought treble damages. Sanchez counterclaimed, alleging violation of the Idaho Consumer Protection Act (ICPA), breach of contract, unjust enrichment, and retaliatory eviction. The district court found Sanchez liable for damages to the residence and awarded treble damages. It also determined that there was no deception on the Pickerings' part to sustain Sanchez's ICPA claim, the agreement was unenforceable due to a lack of mutual understanding, and that the Pickerings were unjustly enriched by the $10,000 down payment and offset the Pickerings' damages award by this amount. The remaining claims were dismissed.On appeal, the Supreme Court of Idaho affirmed the district court's decision. The court found substantial and competent evidence supporting the district court's decision that the Pickerings did not engage in a deceptive act under the ICPA. The court also rejected Sanchez's contention that the district court's damages award should have been reduced to reflect an insurance payment received by the Pickerings as Sanchez failed to provide an adequate record for review. Finally, the court upheld the district court's unjust enrichment award, finding that Sanchez had not demonstrated an abuse of discretion. The Pickerings were awarded attorney fees for having to respond to the collateral source issue. View "Pickering v. Sanchez" on Justia Law

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Craig Stark entered into a contract with McCarthy Corporation to construct a storage facility for recreational vehicles and boats. The relationship turned sour after McCarthy sent Stark an invoice for work Stark believed he had already paid for in full. After the parties were unable to resolve their dispute, Stark terminated McCarthy’s contract. McCarthy then filed a lien against Stark’s property and brought suit for breach of contract and to foreclose its lien. Stark, Stark Investment Group, and U.S. Bank, Stark’s construction lender on the project, counterclaimed for breach of contract, breach of the implied covenant of good faith and fair dealing, fraudulent misrepresentation, slander of title by the recording of an unjust lien, and breach of the Idaho Consumer Protection Act (“ICPA”). After a bench trial, the district court largely agreed with Stark's counterclaims and dismissed McCarthy's complaint. McCarthy appealed the district court’s findings, damages award, and attorney fees award. Finding no reversible error, the Idaho Supreme Court affirmed the district court's holdings that McCarthy breached the contract between the parties and McCarthy violated the ICPA. View "McCarthy Corporation v. Stark Investment Group" on Justia Law

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After Ellen Gittel Gordon defaulted on her mortgage, the loan servicer initiated nonjudicial foreclosure proceedings to sell her home at auction. Gordon submitted multiple loan modification applications and appeals in an attempt to keep her home but ultimately, all were rejected. As a result, Gordon initiated the underlying action in district court to enjoin the foreclosure sale. Upon the filing of a motion to dismiss that was later converted to a motion for summary judgment, the district court dismissed Gordon’s action and allowed the foreclosure sale to take place. Gordon timely appealed. The Idaho Supreme Court concluded none of the reasons Gordon offered were sufficient to reverse the district court judgment, and affirmed dismissal of Gordon’s complaint. View "Gordon v. U.S. Bank" on Justia Law

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This appeal concerned the guardianship of a ten-year-old child, Jane Doe II (“Jane”), whose parents passed away in 2017. A family friend petitioned for guardianship; Jane's aunt (twin sister of her mother) also petitioned for guardianship. A guardian ad litem recommended the friend be awarded temporary guardianship for Jane to finish the school year, then the aunt be permanent guardian. The friend appealed. The final decree appointing Aunt as Jane’s permanent guardian was vacated by the Idaho Supreme Court, which remanded the case for the magistrate court to conduct a hearing to determine whether Jane possessed sufficient maturity to direct her own attorney prior to a new trial. View "Western Community Ins v. Burks Tractor" on Justia Law

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Medical Recovery Services, LLC (“MRS”), appealed a district court decision that affirmed a magistrate court’s dismissal of an MRS complaint. MRS alleged a right to collect on a debt from Yvonne Ugaki-Hicks, who did not respond to the complaint. MRS filed a complaint against Ugaki-Hicks to recover $1,416.63 alleged to be due for medical services provided by SEI Anesthesia. MRS alleged that it was the assignee of the bill. MRS filed an application for entry of default and default judgment. The magistrate court denied the request. MRS appealed to the district court which determined default should have been entered but affirmed the magistrate court’s denial of entry of default judgment. MRS appealed to the Idaho Supreme Court. MRS contended the failure of Ugaki-Hicks to appear and the affidavit of counsel provided an uncontradicted record of the debt assigned to MRS. However, MRS failed to include Exhibit A, the alleged proof of debt or the assignment thereof. MRS stated it did not know why Exhibit A was not included in the record, but that it did not matter because there was no original instrument or written contract between SEI Anesthesia and Ugaki-Hicks. The Idaho Supreme Court concluded the district court did not abuse its discretion in requiring MRS to provide evidence of the assignment of claim. “m. Whether Exhibit A would have met the standard could not be determined by either the district court or this Court. This Court is left to presume missing evidence supports the lower courts’ findings.” The district court decision was thus affirmed. View "Medical Recovery Svc v. Ugaki-Hicks" on Justia Law

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This case centers on efforts to collect payment for medical services. Medical Recovery Services, LLC (“MRS”), appealed a district court decision affirming rulings of the magistrate court in favor of the patient, Jared Neumeier. Neumeier’s doctor’s billing agent assigned the delinquent account to MRS for collection. Neumeier did not receive any attempted communications from his doctor’s office or MRS, nor did he receive any other form of demand for payment related to the delinquent account. Neumeier saw his doctor for other unrelated medical services, which resulted in a separate bills that were submitted to insurance for payment. MRS eventually sent a letter addressed to Neumeier at his correct address. The one-page letter was attached to MRS’s complaint and was the only communication to Neumeier from either his doctor or MRS. The letter listed Neumeier’s contact information, the amount owed (exclusive of interest), the name of the creditor (MRS), and paraphrased recitations of the required inclusions under the Fair Debt Collections Act. The undated notice letter did not identify the doctor or connect the debt with a particular bill or treatment. Without a response from Neumeier, MRS requested its legal counsel to file an action to recover the debt. Neumeier visited his doctor under the belief that the notice letter was a fraud or scam. During this visit, the office discovered that it had never submitted the bill to Neumeier’s insurer; however, the office also informed Neumeier that the account had already been assigned to MRS for collection. On the same date, MRS filed a complaint against Neumeier, seeking a total award of $1,891.37, including $958.63 for the principal amount, $282.39 in statutory prejudgment interest, and attorney’s fees and costs. The next day, Neumeier contacted MRS and was informed that he was “too late.” Neumeier was subsequently served with a complaint and summons. The bill subject to the collection action was eventually submitted to insurance, and all but a $42 co-payment was paid. The doctor’s office waived the co-payment. Once the account was satisfied, MRS refused to drop its suit, claiming it was still owed pre-judgment interest. A magistrate found MRS was not owed interest, and dismissed the case. The Idaho Supreme Court found no error in that judgment, and affirmed the magistrate’s decisions. View "Medical Recovery Svc v. Neumeier" on Justia Law

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Justin Vigos appealed a district court’s decision to reverse a magistrate court’s order granting his motion for summary judgment against MFG Financial, Inc. (MFG). MFG initiated this action to recover damages from a breach of contract. In 2007, Vigos purchased a vehicle from Karl Malone Toyota. The contract was assigned to Courtesy Auto Credit (Courtesy). After some time, Vigos defaulted on the contract and the vehicle was repossessed and sold at auction. Courtesy then allegedly assigned the contract to MFG who initiated this action in 2015. After discovery, the parties each filed a motion for summary judgment. The magistrate court granted Vigos’s motion for summary judgment, finding that MFG had not presented sufficient admissible evidence to show that it was a real party in interest. MFG appealed and the district court reversed the decision of the magistrate court. Vigos appealed, arguing that the district court applied the wrong standard when it failed to first determine if evidence was admissible before considering it for purposes of summary judgment. MFG cross appealed, arguing that the district court erred when it failed to award it attorney fees on appeal. Finding no reversible error in the district court’s judgment, the Idaho Supreme Court affirmed. View "MFG Financial Inc. v. Vigos" on Justia Law

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After review of the documents and affidavits proffered in support of Plaintiff Portfolio Recovery Associates, LLC’s (“PRA”) position, the Idaho Supreme Court concluded they did not contain adequate foundation and were not admissible under the business records exception to the hearsay rule. PRA sued Defendant Lloyd MacDonald for an amount owed on a Citibank credit card account. MacDonald filed a motion for summary judgment, arguing that PRA did not have standing to bring this action because it could not prove that the debt had been assigned by Citibank to PRA. MacDonald objected to the evidence PRA submitted to support its position, arguing that the evidence was inadmissible hearsay and lacked adequate foundation. The magistrate court overruled MacDonald’s objections and granted summary judgment in favor of PRA. MacDonald appealed to the district court. The district court affirmed the magistrate court’s decision. The Supreme Court found that even the catch-all exception to the hearsay rule could not be used to admit some of the documents. The decision to grant summary judgment in favor of PRA was reversed and the matter remanded for further proceedings. View "Portfolio Recovery Assoc v. MacDonald" on Justia Law

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The district court erred in affirming the magistrate’s decision that Medical Recovery Services, LLC (MRS) was estopped from requesting attorney fees under Idaho Code section 12-120(5). MRS attempted a garnishment of Penny Siler’s wages, which was returned unsatisfied because Siler, a school bus driver who cared for her disabled husband and made an average of $499.00 a month, did not earn enough to garnish. MRS agreed to accept $10.00 per month for payment on a default judgment entered after Siler failed to pay a medical bill. Siler went to MRS’s counsel’s office and was told the payoff amount was $1,224.88. She paid that amount in cash. Six days later, counsel for MRS filed an application for supplemental attorney fees under Idaho Code section 12-120(5). Following the hearing, the magistrate court issued an order denying MRS’s application for supplemental attorney fees. In its order, the magistrate court, sua sponte, found that MRS was barred by quasi and equitable estoppel from asking for attorney fees because MRS had told Siler the “payoff amount” was $1,224.88, and MRS did not inform Siler it planned to pursue additional postjudgment fees. MRS appealed the magistrate’s decision to the district court. The district court affirmed, finding “the Magistrate Court retains discretion as to whether, or what amount of, attorney fees will be awarded,” and therefore was free to consider any factor it deemed appropriate, including quasi or equitable estoppel, in determining the amount of attorney fees. View "Medical Recovery Svcs v. Siler" on Justia Law

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H. Peter Doble II appealed a district court’s order awarding Interstate Amusements, Inc. (Interstate) attorney fees. Interstate owned and operated a number of movie theaters throughout Magic Valley. As part of its business, Interstate marketed and sold vouchers known as “Cinema Cash:” vouchers purchased in $1.00 increments and could be redeemed for movie tickets and concessions sold at Interstate’s various theater locations. Each voucher was clearly marked with an expiration date after which the voucher was no longer redeemable. Doble attempted to redeem an expired Cinema Cash voucher at one of Interstate’s movie theaters in Twin Falls. Doble filed a Complaint against Interstate in which he alleged that the issuance of Cinema Cash violated Idaho’s Consumer Protection Act (ICPA). The district court granted summary judgment in favor of Interstate. With regard to fees, the court found that Doble brought his action “frivolously, unreasonably, and without foundation” and awarded Interstate attorney fees under Idaho Code section 12-121. The district court then entered an amended judgment stating: “The defendant, Interstate Amusement, Inc., shall recover from the plaintiff costs in the amount of $320.44 and attorney’s fees in the amount of $7,972.50, for a total of $8,292.94.” Finding no reversible error in the district court's fee award, the Supreme Court affirmed. View "Doble v. Interstate Amusements, Inc." on Justia Law