The Watkins Co v. Estate of Michael Storms
161 Idaho 683
Idaho2017Background
- Watkins owned commercial property leased by Storms and Brownstone; lease became month-to-month after prior litigation.
- Watkins sued in 2010 seeking a TRO and damages for alleged lease violations; a TRO issued conditioned on a $10,000 surety bond.
- TRO lifted; Storms and Brownstone counterclaimed for damages caused by the TRO; seven-day bench trial followed.
- Trial court awarded Watkins $699.64 and Storms/Brownstone $17,015.88, but recovery for Storms/Brownstone was limited to the $10,000 bond.
- Storms and Brownstone sought roughly $80,000 in attorney fees; district court awarded 90% of requested fees ($72,312.36), disallowing 10% as attributable to counterclaim work not recoverable due to bond limitation.
- Watkins appealed only the district court’s apportionment of attorney fees; the Supreme Court affirmed and awarded fees on appeal to Storms and Brownstone.
Issues
| Issue | Watkins' Argument | Storms/Brownstone's Argument | Held |
|---|---|---|---|
| Whether the district court abused discretion in apportioning attorney fees between defense of Watkins’ claims and work on counterclaim | Apportionment (90% to defense) was not supported by substantial competent evidence; district court relied on familiarity rather than itemization | Issue was not preserved below; district court properly apportioned fees based on its familiarity with the case and evidence presented | Court refused to consider apportionment argument because Watkins failed to preserve it at trial and did not seek reconsideration |
| Whether prevailing parties on appeal may recover fees under Idaho Code § 12-120(3) | Not argued to defeat fees on appeal | Storms/Brownstone requested fees on appeal | Court awarded appellate attorney fees to Storms and Brownstone under § 12-120(3) because they prevailed and the dispute arose from a commercial transaction |
Key Cases Cited
- Bott v. Idaho State Bldg. Authority, 128 Idaho 580, 917 P.2d 737 (Idaho 1996) (trial court has discretion to calculate reasonable attorney fees)
- Lettunich v. Lettunich, 145 Idaho 746, 185 P.3d 258 (Idaho 2008) (burden on party opposing fee award to show abuse of discretion)
- Miller v. EchoHawk, 126 Idaho 47, 878 P.2d 746 (Idaho 1994) (fee-award factual findings reviewed for substantial and competent evidence)
- Clear Springs Foods, Inc. v. Spackman, 150 Idaho 790, 252 P.3d 71 (Idaho 2011) (issues raised first on appeal generally not considered)
- Fagen, Inc. v. Rogerson Flats Wind Park, LLC, 159 Idaho 624, 364 P.3d 1189 (Idaho 2016) (failure to object with particularity below bars fee-related challenges on appeal)
- Brooks v. Gigray Ranches Inc., 128 Idaho 72, 910 P.2d 744 (Idaho 1996) (apportionment principles for attorney-fee awards)
