Lead Opinion
Frederick Earl Lawrence appeals from the denial of his motion for summary judgment and the grant of Keith E. Hutchinson’s motion for summary judgment. Hutchinson cross-appeals from the district court’s denial of his motion for attorney fees. We affirm.
I.
BACKGROUND
This appeal represents the culmination of more than ten years of litigation. In July 1996, Frederick Earl Lawrence and his wife were involved in an automobile accident. Although the other driver’s insurance company paid for the damages to their vehicle, it did not pay for Lawrence’s medical bills. Lawrence’s wife reached a settlement with the insurance company regarding her own medical bills. Just before the statute of limitations expired, Lawrence hired Eric R. Clark to represent him in a personal injury suit against the driver of the other car. The complaint was filed, but named the owners of the vehicle as shown on insurance documents, even though it was the teenage daughter of the owners who was driving the car. Nearly two years later, Keith'E. Hutchinson assumed representation of Lawrence after Clark left their firm. During the intervening time, Lawrence and his wife filed for bankruptcy due to their unpaid medical bills. Hutchinson soon withdrew from the case. It was only after Hutchinson’s withdrawal that Lawrence discovered the teenage driver was not named in the suit. Unable to hire another attorney to represent him, Lawrence failed at his pro se attempt to fight summary judgment and his personal injury case was dismissed.
Lawrence, represented by Lowell N. Hawkes, brought a legal malpractice claim (Lawrence I) against both Clark and Hutchinson, seeking damages for their negligent representation of him in the personal injury case. Clark and Hutchinson obtained separate counsel, with Robert M. Harwood representing Hutchinson. Also involved in Lawrence I were the appointed Trustee in the bankruptcy proceeding; an attorney for the Trustee; and Bradley E. Rice, Lawrence’s attorney in the bankruptcy proceeding. Rice had authority from Lawrence, the Trustee, and Hawkes to negotiate a settlement in the malpractice action that would be approved by the bankruptcy court. Rice informed Harwood of this arrangement and indicated that he expected a standard release would be executed once a settlement was reached. Harwood was given authority by Clark, his attorney, and Hutchinson to negotiate a settlement. On September 13, 2004, Rice and Harwood spoke by phone and agreed that Clark and Hutchinson would jointly pay Lawrence $37,500 to settle his malpractice claim against them. That same day, Harwood sent two letters to Rice and the other participants indicating that they had reached an agreement to settle for the stated amount.
Given that fact that a settlement, in principle, has been reached with the parties, the Defendant Hutchinson feels that a trial would be an unnecessary waste of time and money.
The district court vacated the trial date, but did not dismiss the case. Both Lawrence and Hutchinson proposed release language, with no agreement as to the requirements for the final release. Sometime in November the parties discovered that Lawrence had previously made a broad formal assignment of all his claims to a medical provider, potentially exposing Hutchinson and Clark to further liability. Hutchinson was adamant that the release include a confidentiality clause and an indemnity clause, and while Hawkes proposed language for these clauses, the language was not satisfactory to Hutchinson.
In March, 2005, the district court held a status conference on the case. Hawkes did not appear at the hearing; another attorney appeared on behalf of Lawrence as a favor to Hawkes. The substitute attorney represented that the case was settled, but the parties could not agree on release language. The district judge expressed his belief that there was no settlement if they could not agree on the release. Lawrence asked the court not to dismiss the case at that time, but to give the parties more time to finalize the details. The district court issued an order to show cause why the ease should not be dismissed. At the subsequent hearing in June, Hawkes represented that he had no objections to Harwood’s request for a new trial date and explained he did not seek a date sooner because he was trying, in good faith, to work through their differences. The court set a new trial date rather than dismiss the case outright. Several months later, Hutchinson moved for summary judgment. At the hearing in October of 2005, Hawkes argued for the first time that an enforceable settlement agreement had been reached and that it should be enforced against Hutchinson. However, Hawkes did not amend the original malpractice complaint to seek enforcement of a settlement agreement, and the court decided that it lacked jurisdiction to grant such relief without an amendment. The district judge stated:
It seems to me that there are tons of factual questions with respect to whether there was or wasn’t an agreement, what the terms of the agreement were. It is clear to me that you gentlemen reached an agreement on the numbers. That is absolutely clear to me. It is also clear to me that it is customary in every ease that I’ve ever been involved with for a case to conclude with the execution of some form of reasonable release document.
I’m not in a position to sit here and dictate to you what a standard release is. Frankly, there is no such thing. There are standard forms that different people use, but I venture to say that there are about as many settlement agreements and release documents as there are lawyers and lawsuits and they come in all shapes and sizes and I’m not in a position to dictate what the terms of your agreement are or even if you have one.
The district court dismissed Lawrence’s malpractice claim against Hutchinson without prejudice, so that Lawrence could file a new action to enforce the purported settlement agreement. The claim against Clark was continued for trial.
Lawrence did not appeal the district court’s order. Instead, he first attempted to enforce the agreement in bankruptcy court, but the judge exercised his discretion pursuant to 28 U.S.C. § 1334(c)(1) and declined to rule on the issue out of respect for the state courts. The parties continued to negotiate, and Clark eventually agreed to pay $24,000 to settle the claim against him, using a release prepared by Hawkes. Although Hawkes and Harwood continued to negotiate, they could not reach an agreement on release language, so Lawrence filed a complaint for damages arising out of the breach of the purported settlement agreement, instigating the present action. Hutchinson answered
Hutchinson brought a motion for costs and attorney fees pursuant to Idaho Rule of Civil Procedure 54(d), and Idaho Code § 12-120. Lawrence objected on the basis that the statutory requirements of that section had not been met. Fees were ultimately denied because damages of $25,000 or less were not pleaded by either party. Lawrence appeals from the district court’s denial of his motion for summary judgment and the granting of Hutchinson’s motion for summary judgment. Hutchinson cross-appeals the denial of attorney fees under I.C. § 12-120(1).
II.
DISCUSSION
A. Cross-Motions for Summary Judgment
Both Lawrence and Hutchinson moved for summary judgment. We first note that summary judgment under I.R.C.P. 56(c) is proper only when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. On appeal, we exercise free review in determining whether a genuine issue of material fact exists and whether the moving party is entitled to judgment as a matter of law. Edwards v. Conchemco, Inc.,
When assessing a motion for summary judgment, all controverted facts are to be liberally construed in favor of the nonmoving party. Furthermore, the trial court must draw all reasonable inferences in favor of the party resisting the motion. G & M Farms v. Funk Irrigation Co.,
1. Did Lawrence and Hutchinson enter into a binding settlement agreement?
Lawrence asserts that he and Hutchinson entered into an enforceable settlement
Stipulations for the settlement of litigation are regarded with favor by the courts and will be enforced unless good cause to the contrary is shown. Kohring v. Robertson,
Oral settlement agreements must comply with the requirements for contracts. McColm-Traska,
Whether the parties to an oral agreement or stipulation become bound prior to the drafting and execution of a contemplated formal writing is largely a question of intent. Kohring,
Lawrence argues on appeal that there were no material terms left to be established after the oral agreement to a money amount and that the representation to the court that a settlement had been reached confirms this. Lawrence asserts that confidentiality and in
In a letter from Rice to Harwood dated August 25, 2004, it is clearly stated that a written release was expected to be executed by the parties. Although Rice states that specific language had not previously been discussed, he was anticipating “standard” language. All of the parties later confirmed that written releases were regularly used in the settlement of cases similar to this one. The district court also indicated that a written release would normally follow this type of oral agreement. However, the only term of the agreement that was specifically determined during the September 13 phone call was the amount of money to be paid by Clark and Hutchinson. Thereafter the parties informed the court that a settlement had been reached, but the only term put before the court in order to vacate the trial date was the money amount of settlement. Numerous letters and proposals for release language were sent between the parties, but no specific agreement could be reached. In December of 2004, Harwood submitted a “final offer” for proposed release language, which Hawkes declined to accept. Thereafter, Hawkes tendered a redrafted release proposal to Hutchinson which was rejected by letter dated May 23, 2005, due to perceived problems over the indemnity language and obligation. In the same letter, Hutchinson formally withdrew any offers of settlement. It was not until a hearing was held on Hutchinson’s subsequent motion for summary judgment in Lawrence I that Hawkes first asserted their agreement from September 13, 2004, was enforceable and complete.
Lawrence relies on two cases to support his assertion that there was an enforceable oral agreement, but both are distinguishable. In Suitts,
Similarly, in Kohring,
In the case at bar, we do not have the transcript from the hearing on Hutchinson’s
Hutchinson represented to the district court that the parties had reached an “agreement, in principle.” This is not an unconditional statement of agreement. Conley,
2. Should Hutchinson be judicially es-topped from denying the settlement agreement?
Lawrence also asserts on appeal that Hutchinson should be judicially estopped from denying the existence of an enforceable settlement agreement. The Idaho Supreme Court adopted the doctrine of judicial estoppel in Loomis v. Church,
B. Attorney Fees
Hutchinson appeals the district court’s denial of attorney fees below. Hutchinson moved for costs and attorney fees pursuant to I.C. § 12-120(1) and I.R.C.P. 54(d). Section 12-120(1) of the Idaho Code states, in relevant part:
Except as provided in subsections (3) and (4) of this section, in any action where the amount pleaded is twenty-five thousand dollars ($25,000) or less, there shall be taxed and allowed to the prevailing party, as part of the costs of the action, a reasonable amount to be fixed by the court as attorney’s fees.
This section is interpreted literally by the courts. Cox v. Mueller,
None of the pleadings in this ease specifically assert “damages of $25,000 or less.” Lawrence’s complaint seeks damages for the breach of a settlement agreement wherein the parties agreed to settle for $37,500. Despite stating that the settlement agreement was joint, the complaint does not state exactly how much money Lawrence sought as damages against Hutchinson.
III.
ATTORNEY FEES ON APPEAL
Both Hutchinson and Lawrence seek attorney fees on appeal pursuant to I.C.
IV.
CONCLUSION
The district court did not err in denying Lawrence’s motion for summary judgment and granting Hutchinson’s cross-motion for summary judgment. The parties did not have an enforceable oral settlement agreement when they agreed to the monetary amount. The parties contemplated a formal release and indemnity as material to the settlement, and these terms were never mutually resolved. The district court also did not err by denying Hutchinson attorney fees below, as there was not a strict pleading of damages in the amount of $25,000 or less. As each party has prevailed in part, no costs will be awarded on appeal.
Notes
. Harwood’s first letter stated: "This will confirm our recent telephone conversation in which the Defendants in the state court offered and you accepted a joint total settlement of $37,500.... Given the fact that the case appears to be resolved, except for the formality of approval in the Bankruptcy Court, I will file a Motion to Vacate the Trial Date in the state court case.” The second letter addressed payment of the agreed amount: "This will confirm that we have agreed to settle the above for a total of $37,500. One half of that will be paid by Mr. Hutchinson’s carrier and the other half by Mr. Clark's. As soon as I receive the trustee’s tax id number I will order my draft."
. During oral argument, both sides agreed that summary judgment was the appropriate method of resolving this case' and that a trial was not necessaiy.
. The prayer simply requests "an award of damages against Defendants for breach of the settlement agreement, plus interest ... costs, and attorney fees plus such other relief as is appropriate.”
Dissenting Opinion
dissenting.
I respectfully dissent. The outcome of this case turns on the parties’ intent, which we infer from the facts and circumstances surrounding the alleged agreement. Conley,
This case is not distinguishable from Suitts or Kohring, for the parties had covered all of the material terms of their agreement. Despite the understanding that the parties would execute a standard release, Harwood indicated that the only issues remaining to finalize the settlement were access to the trustee’s tax id number and approval from the Bankruptcy Court. Indemnity and confidentiality were not paramount to the settlement of the case, but were issues that arose after the fact. Just because this settlement agreement was not as complicated as the agreements in Suitts and Kohring does not make it any less enforceable.
Even if it is assumed that the parties disagreed as to the terms involving the release, summary judgment to either party would be inappropriate. Where there are unresolved issues of material fact, it is improper to declare that either party is entitled to judgment as a matter of law. Cf. Edwards,
