Benintendi v. Hein

Summary

The Montana Supreme Court reviewed a landlord-tenant dispute involving property damage, retention of a security deposit, attorney fees and costs, and a default judgment. The court affirmed denial of attorney fees and the setting aside of the default judgment, but reversed the denial of costs and remanded for an award of appropriate costs under Montana law.

Holdings

1. The District Court did not err in interpreting the rental-agreement attorney-fee clause as applying to eviction proceedings and not clearly and unequivocally requiring an award of fees in this non-eviction dispute.
2. Montana Code Annotated § 70-24-442 permits, but does not require, an award of reasonable attorney fees to a prevailing party in an action on a rental agreement or arising under the residential landlord-tenant chapter.
3. A plaintiff who obtains a favorable verdict and judgment in an action for recovery of real property or damages to real property is entitled to allowable costs as a matter of right; the statute is mandatory rather than discretionary.
4. The District Court did not manifestly abuse its discretion in setting aside the default judgment because the Heins established good cause under the applicable four-part test.

Questions Presented

1. Whether the District Court erred in denying the landlords' request for attorney fees under the rental agreement and Montana Code Annotated § 70-24-442.
2. Whether the District Court erred in denying the landlords costs under Montana Code Annotated § 25-10-101.
3. Whether the District Court manifestly abused its discretion in setting aside the default judgment.

Disposition

reversed_and_remanded