272 P.3d 467
Idaho2012Background
- Farber, Becker, and Critter Clinic sue the Idaho State Insurance Fund Manager for dividends under I.C. § 72-915.
- District court held the gravamen sounded in statute and barred pre-2003 claims under I.C. § 5-218(1).
- This Court previously held in Farber I that Manager discretion was limited to whether to distribute a dividend.
- On remand, the district court treated the claim as statutory and limited it to dividends from July 1999 to June 2001 under the statute of limitations discussion.
- The Supreme Court overruled Hayden Lake I, held the contract-based five-year limitation applies, and remanded for proceedings consistent with that holding.
- Costs awarded to appellants; the decision below is reversed and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the gravamen sounds in contract or statute. | Farber argues contract governs; statute is embedded but not sole basis. | SIF argues statute governs as the basis for liability. | Contract-based limitation applies. |
| Which statute of limitation applies to Farber’s claim. | Five-year contract limitation applies due to contract-based nature. | Three-year statute for claims arising under statute may apply. | Five-year statute of limitation in I.C. § 5-216 applies. |
| Whether Hayden Lake I correctly stated the applicable limitation rule. | Hayden Lake I relied on statute-based reasoning. | Hayden Lake I was controlling. | Overruled; Hayden Lake I was manifestly wrong. |
Key Cases Cited
- Farber v. Idaho State Insurance Fund (Farber I), 147 Idaho 307 (2009) (reversed district court on the contract interpretation of §72-915; set stage for limitation issue)
- Hayden Lake Fire Prot. Dist. v. Alcorn, 141 Idaho 388 (2005) (statute-of-limitations position for contract-related claims deemed erroneous)
- Kelso & Irwin v. State Insurance Fund, 134 Idaho 130 (2000) (contract-based theory; incorporation of statutes into contract governs liability)
- Lincoln County v. Twin Falls North Side Land & Water Co., 23 Idaho 433 (1913) (contractual basis for liability where statute conflicts)
- Cruzen v. Boise City, 58 Idaho 406 (1937) (statutory provisions facilitating contract claims treated as contract-based)
- Dietrich v. Copeland Lumber Co., 28 Idaho 312 (1916) (distinguishes standalone statutory liability from contract-based claims)