Twin Falls Staffing, LLC v. Visser (In Re Visser)

MEMORANDUM

All parties, Twin Falls Staffing, LLC, and Tom Welstad '(Plaintiffs), and Joseph and April Visser (Defendants), appeal the district court’s memorandum decision. We affirm.

1. Twin Falls Staffing incurred $128,151.55 in attorney’s fees to obtain an injunction against Joseph Visser in Idaho state court. Before a trial could be held in state court, Joseph Visser filed for bankruptcy and forced Twin Falls Staffing to pursue this action in federal bankruptcy court. At the bankruptcy court trial, Twin Falls Staffing included the $128,151.55 in state court attorney’s fees in its request for damages. The bankruptcy court then awarded Twin Falls Staffing these requested fees as damages.

Idaho follows the “American Rule,” which permits courts to award attorney’s fees when “they are authorized by statute or contract.” Hellar v. Cenarrusa, 106 Idaho 571 , 682 P.2d 524, 531 (1984). Although on appeal Twin Falls Staffing has now identified a statute under which it would be entitled to attorney’s fees, separate and apart from an award of damages, see Idaho Code Ann. § 12-120 (3), it has not identified a contract or statute that would permit it to recover attorney’s fees as damages.…