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Emery v. United Pacific Insurance
815 P.2d 442
Idaho
1991
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*1 BISTLINE, Justice, concurring dissenting part. EMERY, Plaintiff-Respondent, Carol

I. v. opinion correctly recognizes majority INSURANCE COM- UNITED PACIFIC have that ATI could filed action PANY, Washington corporation, Simplot applicable statute before Defendant-Appellant, waited, Instead, ATI limitations had run. I peril. ground its concur On majority opinion’s determination of Porter, Douglas Defendant. James appeal. No. 18502.

II. Idaho, Supreme Court fees, as my In dissent from the award Boise, December 1990 Term. before, I “to stated continue adhere Donaldson, Bistline, J. and J. assertions July Inc., Developers, Minnich Gem State 911, 919, 1078, 1086 (1979), has inherent that this Court neither statutory authority

nor to award appeals____” Lowery v. Bd. on 1079, 1082, Com’rs, County (Bistline, (1990) specially

P.2d J. Furthermore, had

concurring). this Court on

begun to the award restrict Nem-

appeal. Brower v. DuPont De See

ours & opinion may un- majority Today’s

fortunately beginning of the rever- be trend. This not

sal that welcome awarding

suggest that a contract clause can dis- prevailing party

fees to the be in a

regarded. where it was inserted Even only one

bargained contract favor for an parties, it has the basis been

award. has it that regard, recollection pro- developed has case law which

Montana in a provision

vides that unilateral only one never-

contract which favors favor construed

theless will be who, if well, depending only on

the other phi- prevailing party. That

anyone, is the soundly principled

losophy my view is over- operate diminish the

and should place may where

reaching take have

parties to footing.

equal *2 make

arbitration award to an award of during were incurred proceedings, course of arbitration may whether be general damages commencing awarded on injury. from the time 29, 1987, plaintiff-respon- June On dent, Emery, pedestrian Carol was a in- Porter, jured car when a driven James a struck her in crosswalk. Porter was an liability underinsured motorist whose insur- $20,000.00. policy paid Emery Emery ance insurer, amade claim her defen- dant-appellant United Pacific Insurance provi- under the underinsured motorist sions her had limits which $300,000.00. 16,1988, September Emery

On submitted a formal loss accident, describing the facts of the her injuries, diagnosis, prognosis special damages she had incurred as a result of Emery for accident. Counsel valued $625,000.00. her In response case claim, Emery received a letter from United 18, 1988, Pacific dated October it $20,000.00paid for demanded credit Porter’s insurance carrier and offered an $28,000.00 compensation. additional Em- rejected ery Pacific’s United offer and on 30, 1988, November filed suit in the district damages, court for attorney fees, declaratory a judg- costs and Chartered, Brady, Lerma, Saetrum & January action. On ment after the Boise, attorney defendant-appellant. filed, district court action had United Reynolds, argued. Kent Y. petition compel Pacific filed a arbitration Davison, Boise, Copple, Copple Copple, & pursuant upon to I.C. 7-9021 and plaintiff-respondent. Copple, E. Don arbitration clause contained insur- argued. policy. The district court ordered ar-

bitration on the limited issue of the amount BOYLE, Justice. would be enti- provi- tled under the underinsured motorist appeal In this from the district court’s sions clause of her insurance granting summary judgment, order we are called to determine panel whether it was The arbitration $281,853.96 Thereafter, proper confirming damages. for the trial court in Proceedings compel stay I.C. § 7-902. (a) application (d) Any involving On proceeding action or arbitration. — showing 901, agreement 7- described section stayed subject issue to arbitration shall if be Code, provision in a written [a application an order for arbitration or an submit con- section____ therefor has been made under this arising troversy parties], between ... proceed court order shall arbitration ... fees. in to an award of Award parties executed a Satisfaction argues if $280,000.00. Emery then amount of contract, including an insurance of Arbitra- filed a Motion for Confirmation *3 clause, attorney invokes the arbitration Summary a Motion for Award and tor’s pro- during the arbitration fees incurred 1) following Judgment issues: ceeding are not recoverable. prejudg- entitled to Emery was Whether accident; of from the date ment interest states, 7-910 I.C. § to 2) Emery entitled at- and Whether was agree- in the provided otherwise Unless district court torney and costs. The fees arbitrate, ex- the arbitrator’s ment Emery’s and held that she granted motions fees, ex- together with other penses and interest from was entitled to fees, in- including penses, not counsel date the accident until the the date of the arbitration, curred in the conduct of the satisfied, pursuant and I.C. award was paid provided as in award. shall be attorney in fees added.) 41-1839 (Emphasis § $49,381.25. United Pacific the amount 7-910, regard this With to I.C. § summary appeals from the pro interpreted the statute Court has interest and awarding Emery prejudgment scope of beyond an arbi vide that it attorney fees. attorney powers to fees trator’s award a contractual of the absent

one I. Bingham County to do so. Elec. v. Interstate Comm’n Attorney Fees Award of However, that attorney sought fees an award upon an does ex limitation arbitrator 12-120(3),12- pursuant to I.C. and costs §§ authority the district court to to the tend 54(d)(1). 121, 41-1839, The I.R.C.P. and 41- attorney pursuant fees to I.C. award § Pacific had that trial court found United frivolously as to base an not acted clause contained The arbitration attorney I.C. 12-121 fees under award § states contract2 insurance 54(d)(1),and that the case was I.R.C.P. parties object, arbitration that unless 12-120(3) of I.C. scope not within § rules of the under the be conducted will transaction a commercial since it was not A re- Arbitration Association. American by the statute. as defined that no demonstrates view of the record pursuant However, trial court ruled pro- made to the arbitration objection was Pacific that United to I.C. 41-1839 those ceedings being § conducted under attorney in- Emery’s pay obligated Associa- American Arbitration rules. The litigation process, during following the entire curred relevant Rules contain the proceedings. including the arbitration which state: provisions of attor- appeals for either witnesses expenses asserting pursuant to I.C. ney producing party paid by the side shall be clause con- expenses and the arbitration 7-910 All witnesses. other such § contract, attorney required arbitration, in insurance tained expenses been awarded of the arbi- travelling fees should not have and other during and the representatives, they were incurred and AAA extent that trator the cost of any expenses Pacific con- witness proceeding. United arbitration request produced at the direct any pursuant to I.C. cedes § arbitrator, equally shall be borne of the in a court action recovers insured who they agree other- by unless parties, entitled terms of contract enforce the party may damages, either the amount Pacific in the United clause 2. The arbitration Such part: demand for arbitration. pertinent make a written states the rules be conducted under will person disagree whether we and covered If unless Association legally dam- Arbitration person to recover the American that ages objects... operator person of an under- owner or or covered from the we agree do not vehicle or motor insured wise or unless the arbitrator presentation those associated with the expenses award assesses such or witnesses. required Where the insured is against any specified thereof compelled by to file a lawsuit reason of parties. pay an insurer’s refusal order to re- cover under her insurance we states, As the above rule rule implicit hold it is in I.C. 41-1839 that the proceedings of arbitration par- is that the adjudge court shall a reasonable award of expenses ties must bear all of arbi- the insurer.3 This except tration expenses those of witnesses Court has further held that the paid are to be producing fee authorized 41-1839 such is not a provided witnesses. *4 penalty, but an additional Rules, the American sum rendered as parties Arbitration the just compensation. may agree modify Halliday any this rule in Farmers man- Exch., 293, they ner that Ins. 89 Idaho choose. 404 P.2d 634 (1965). We affirm the trial court’s award This Court previously has held attorney fees. provisions that the of I.C. 41-1839 be § part come of the insurance contract to the II. though same effect incorporated therein. Prejudgment Interest Pendlebury v. Casualty Western & Sur.

Co., (1965). In the instant action the I.C. trial court provides 41-1839 pertinent in ruled that part: was entitled to prejudg § ment interest on the entire award from the attorney 41-1839. Allowance of fees in date of the accident. (1) argues suits Any insur- insurers. — that this was error in issuing any general er that the policy, certificate or con- damages portion insurance, of the unliqui tract of award was surety, guaranty or dated, and indemnity any reasonably kind or ascertainable. nature whatso- ever, asserts that which shall was not period fail for (SO) prejudgment to recover thirty days proof loss has after until the amount of damages provided furnished as in was deter poli- such by mined the cy, contract, arbitrator and a certificate or decree en pay to the disagree. tered. We person entitled thereto the amount justly due under such policy, certificate In awarding prejudgment the contract, shall in action thereafter trial court relied on our recent holding in brought against the insurer in any court Co., Brinkman v. Aid Ins. in this state for recovery under the terms (1988). Brinkman, the policy, of the contract, certificate or pay insured similarly injured was by an under- such amount as the court shall further insurer, insured motorist. The Aid Insur- adjudge reasonable attorney’s in fees Company, ance pay Brinkman, refused to such (Emphasis added.) action ... causing him to file suit to recover under Pursuant implied to this term in the insur- the underinsured motorist clause of his in- contract, parties the agree that policy. surance A jury returned a verdict obligated pay insurer is attorney if awarding $156,000 damages. Brinkman in compelled the insured is to file suit to re- The trial court Brinkman looked to I.C. cover under the insurance 28-22-104(1) As an provides which prejudg- § implied term the insurance the ment “money interest on statutory language of I.C. 41-1839 modi- contract” and found that Brinkman § general

fies the American Arbitration As- entitled to interest from the sociation rule that the must bear date of the accident on the medical bills expenses arbitration, all except which became owing prior due and to suit loss; I.C. 41-1839 days § limits awards of proof within 30 of such 1) 3) to those instances where the insured compelled bring has the insured thereafter is provided required by of loss as Reynolds suit to recover for his loss. v. Ameri 2) policy; insurance company the insurance can Hardware Mat. Ins. pay justly fails an amount due under Justice, BAKES, concurring timely paid by Aid. Chief were not asserting that appealed prejudg-

Brinkman dissenting in part: have been allowed ment interest should jury entire amount of the I damages. Pursuant general 28-22-104(1), this Court held

to I.C. § agree portion I with the of the Court’s stating, favor of I.C. 41- opinion which holds under duty significant It that Aid’s arose out plaintiff be awarded attor- should Brinkman, of contract Aid and between litigation. ney relating fees incurred Aid not out a tort action. Because today’s opinion to the effect of up to contracted to insure Brinkman for repeal provisions $300,000 injuries suf- for all and losses award shall provides that hands of an underinsured fered fees. The best resolu- not include counsel tortfeasor, Aid liable prorate two these statutes is interest on the entire amount portion caused between jury. Prejudgment interest accrues from the date portion litigation, and that incurred *5 accident, is the date because conducting the arbitration. It has contractual duties accrued. Aid’s always statutory rule of construc- P.2d at 1234-35. 115 Idaho 766 interpret conflicting provisions to two presented case 2 give meaning. The facts in the instant as to them some both strikingly in Brink- are similar to those Suth.Stat.Const., (2d ed.); Lewis 516 it was not error man. We therefore hold Com’n, Taxpayers v. Fair Political Prac. prejudgment trial to for the court award (2nd 991, 898 Cal.App.3d Cal.Rptr. 212 260 commencing upon the entire award interest Dist.1989) (“[Ujnder general rules statu- from date the accident. construction, first to tory courts must seek important It to that the Brink- is note which re- harmonize and reconcile statutes applicable very limited man decision is thereby subject matter and late to the same is set facts. The decision Brinkman avoid, possible, interpretation if at all not, contends, applicable appellant as the to be would cause one the statutes actions, The all tort or all contract actions. give ignored.”). Prorating fees would is limited to actions Brinkman decision meaning 41-1839 and 7-910. to both I.C. §§ ac- first insurance contract based on proration. I would for that remand involving tions an underinsured motorist similar to the one contained clause situa-

Brinkman’s insurance II this, an insured files tion such as where com- suit his or her own insurance prejudgment As to the award of pany payment for under an underinsured earlier deci- opinion follows our the Court’s clause, motorist the insured Co., 115 AID Ins. sion Brinkman v. award, prejudgment interest on the entire 346, (1988), 766 1227 P.2d damages, award prior contrary literally dozens of our injury. from time Brinkman v. Aid that, in con- have held even cases which 346, 1227 115 Idaho 766 P.2d Ins. cases, will be no interest tract (1988). Therefore, we affirm the trial damages allowed the amount of where on award interest court’s Stoor’s, De- unliquidated. v. Idaho Inc. beginning from damage award entire Recreation, 119 Ida- partment Parks & the date of the accident. (1990); 83, v. Ho- P.2d 989 Barber ho 803 in all trial court’s order is affirmed (1989); 767, 780 P.2d 116 Idaho norof respects. respondent. Costs to No Services, Business Davis v. Professional awarded. (1985); 810, Inc., 109 Idaho 228, Flandro, Mitchell BISTLINE, McDEVITT, v. JOHNSON (1972); Development Corp. v. JJ., Farm concur. 918, Hernandez, prior judgment, for in that event the 478 P.2d 298 fully compensating injured predominates equitable over other discussing overruling the Without considerations.” cases, purported foregoing 93 Idaho at 478 P.2d at 300. The 28-22-104(1) rely justify on I.C. § apparently un- Court in Brinkman though result in that case. even that the issue had been decided in aware 28-22-104(1) provide does for inter- I.C. § Development Corp. the Farm case. Be- contract,” “money est on cases, cause of that conflict in the we two Court, in Development Corp. Farm should reevaluate the issue. Hernandez, unliqui- more classic case of There is no (1970),expressly rejected pre- damages personal injury than a dated judgment interest based I.C. 28-22- evaluating fact is where the trier of unliquidated. where the are personal injury future effects of a lost Development Corp. The Court in Farm wages, expense, pain future future medical stated: suffering, physical and other and emo- Development argues Farm it is entitled problems tional which the claimant will suf- a matter to interest as of law on the sum good fer the future. There is no reason $8,008.50 (6%) per per at six cent exception first-party to make an insur- 16,1965 April annum from to the time of cases, today’s opinion apparently herein, judgment in addition to the proposes interpret Brinkman. interest from the date of until *6 fact, very good there is a reason not Development satisfaction thereof. Farm Judgments personal injuries to. for such contends this conclusion is com- routinely compensate person damages 28-22-104, pelled by provides occurred, yet which have not which will but pertinent part: future, i.e., occur in the future medical express “When there no contract expenses, wages, pain, future lost suffer- writing fixing a different rate of inter- basically ing, disfigurement, etc. It is il- est, interest is allowed at the rate of logical unjust and to award (6<p) money representing interest on sums of six cents on the hundred occurred, damages yet which have not but year on: only occur fu- which will sometime Money “1. contract.” ture. At the time of the execution of the con- This Court should reconsider its decision provision tract the above was in force as reject contrary it. It is I.C. 27-1904. It is true as Farm Devel- prior dealing to all of our case law opment contends that no there need be unliquidated damages, whether in contract prayer for interest contained in the com- tort, specifically, contrary or it is plaint justify the award of interest. Development Corp. our case of Farm Darrah, Black v. 233 P.2d Hernandez, supra. importantly, But more (1951). However, it is also settled illogical unjust it is that “courts have refused to allow inter- yet which have not occurred. prior est from a time when principal liability un- amount of liquidated. apparently This limitation is upon equitable considerations.

based liability where the amount of

liquidated capable of ascertainment * * * processes mere mathematical has allowed interest from a time

Court

Case Details

Case Name: Emery v. United Pacific Insurance
Court Name: Idaho Supreme Court
Date Published: Jul 30, 1991
Citation: 815 P.2d 442
Docket Number: 18502
Court Abbreviation: Idaho
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