266 P.3d 490
Idaho Ct. App.2011Background
- McCormack was injured at work in April 2001 and began receiving monthly TTD benefits from the insurer.
- August 22, 2001 payment prompted McCormack to hire Caldwell for representation due to alleged continued benefits.
- Checks for Sept 2001–Feb 2002 were sent to the law firm and endorsed with McCormack’s name; he allegedly never received them.
- Industrial Commission awarded benefits July 2006 (TTD through May 30, 2002; PPD benefits) and an attorney-fee issue followed, resolved February 2007; payment reached McCormack by March 2008.
- McCormack filed suit on June 8, 2009 alleging mishandling of TTD checks and related professional-conduct violations; he argued a 2-year statute and discovery-based accrual.
- District court granted summary judgment, applying a 3-year limit for conversion of instruments and holding the action barred by Feb 2005 accrual for the last check.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What statute of limitations governs McCormack's check-misappropriation claim? | McCormack urged a discovery-based approach under §5-219(4). | Defendants argued §28-3-118(7) conversion period; no discovery exception. | Conversion statute applies; accrual at theft; action time-barred. |
| Does a discovery rule apply to a conversion claim for stolen checks? | Discovery extended accrual to 2008. | No discovery exception for conversion claims. | No discovery exception; accrual upon theft. |
| Was the district court's treatment of the motion as summary judgment proper? | Labeling as Rule 12(b)(6) is harmless; factual records support dismissal. | Motion admissible as summary judgment because matters outside pleadings. | Properly treated as summary judgment; record adequate for decision. |
Key Cases Cited
- Common Sch. Dist. No. 18 v. Twin Falls Bank & Trust Co., 52 Idaho 200 (1932) (statute of limitations governs substance; conversion analysis)
- Havird v. Lung, 19 Idaho 790 (1911) (no discovery exception for conversion)
- Common Sch. Dist. No. 18 v. Twin Falls Bank & Trust Co., 52 Idaho 203 (1932) (conversion of funds; three-year limit applies)
- Nerco Minerals Co. v. Morrison Knudsen Corp., 140 Idaho 144 (2004) (classify action to apply proper limitations)
- Dawson v. Cheyovich Family Trust, 149 Idaho 375 (2010) (affirm on correct theory despite erroneous theory)
- Knudsen v. Agee, 128 Idaho 776 (1996) (recognizes general discovery exceptions only where statute provides)
- Theriault v. A.H. Robins Co., Inc., 108 Idaho 303 (1985) (limits discovery exceptions to statutory carve-outs)
- Havird v. Lung, 19 Idaho 790 (1911) ((duplicate))