293 P.3d 645
Idaho2013Background
- Reynolds sued Trout Jones for alleged professional negligence in drafting and handling a real estate agreement with Quasar Development.
- Reynolds deposited $60,000 earnest money with a termination option if the plat wasn’t recorded by July 31, 2007.
- Quasar did not refund; Trout Jones unsuccessfully sought refund and filed suit on Reynolds’s behalf on Sept. 25, 2007.
- District court granted Reynolds summary judgment on the refund issue but found the action timely or not on other grounds and the case settled; Quasar later bankruptcy prevented repayment.
- Reynolds filed suit for professional negligence March 9, 2010; district court granted summary judgment that the two-year statute of limitations barred the action; Reynolds appealed.
- Court maintained de novo review and concluded the claim is time-barred by Idaho Code § 5-219(4) because some damage occurred by Sept. 25, 2007.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether §5-219(4) bars the malpractice claim based on accrual timing. | Reynolds argues accrual is a fact question; damages could have accrued later (March 11, 2008) | Damage occurred when Quasar refused refund, Sept. 25, 2007 | Barred; accrual occurred by Sept. 25, 2007. |
| Whether Reynolds is entitled to attorney fees on appeal under §12-120(3). | Reynolds seeks no fees; Trout Jones argues prevailing party status | Trout Jones entitled as prevailing party in a commercial transaction | Trout Jones entitled to attorney fees on appeal. |
Key Cases Cited
- Lapham v. Stewart, 137 Idaho 582 (Idaho 2002) (damages occur when funds are disbursed, not upon later events)
- Buxton v. City of McCall, 146 Idaho 656 (Idaho 2009) (loss of opportunities accrues on the date the opportunity is lost or harm occurs)
- Parsons Packing, Inc. v. Masingill, 140 Idaho 480 (Idaho 2004) (negligent failure to file security creates potential for damage; accrual upon loss)
- Bonz v. Sudweeks, 119 Idaho 539 (Idaho 1991) (no damage at negligent recording; damage upon third-party reliance or discovery)
- Streib v. Veigel, 109 Idaho 174 (Idaho 1985) (no damage until IRS assesses interest/penalties)