Minnick v. Hawley Troxell Ennis and Hawley, LLP and Geoffrey M. Wardle

Summary

The Idaho Supreme Court reversed summary judgment dismissing the Minnicks’ legal malpractice action as barred by the statute of limitations. The court held that the claim based on failure to subordinate a mortgage did not accrue until the IRS raised that issue in the related tax proceedings, because no actionable damage from that omission had occurred earlier. The court also vacated the attorney fee award, awarded costs on appeal to the Minnicks, and remanded for further proceedings.

Holdings

1. The malpractice claim based on failure to subordinate the mortgage did not accrue until the IRS raised subordination as a ground for disallowing the tax deduction, because no actionable damage related to that omission occurred before the issue was formally raised.
2. The district court erred in granting summary judgment dismissing the Minnicks' malpractice action as time-barred.
3. The attorney-fee award in favor of the defendants was vacated because the judgment supporting the award was reversed.
4. Neither party was entitled to attorney fees on appeal because the prevailing party could not be determined until the case was finally resolved.
5. Costs on appeal were awarded to the Minnicks as the prevailing parties on the appeal, even though they might not ultimately prevail in the underlying action.

Questions Presented

1. Whether the district court erred in granting summary judgment on the ground that the Minnicks' professional negligence claim was barred by Idaho's two-year statute of limitations.
2. Whether the district court erred in awarding attorney fees and costs to the defendants below.
3. Whether either party was entitled to attorney fees and costs on appeal.

Disposition

reversed_and_remanded