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Hartman v. United Heritage Property and Casualty Co.2/18/2005
d require the insurance company to defend the underlying lawsuit in every case.
C. Does Keane's Release of All Claims Against United Heritage Apply to Keane's Later Assignment to the Hartmans of Claims for Bad Faith and Breach of Contract Arising from Circumstances Surrounding the Release Itself?
The Hartmans, as assignees of Keane, alleged in their complaint causes of action for breach of the insurance contract and bad faith arising out of the circumstances surrounding the negotiations leading up to, and the execution of, the release. The district court held that the written release signed by Keane and her mother was broad enough to cover any such claims. The release included the following provision:
In addition, by this Policy-Holder Release and Indemnity Agreement Releasors [Keane and her mother] release and discharge any and all claims, liabilities, duties and obligations that Releasors may have at law or equity, whether based on tort, contract, or any other theory of recovery, including but not limited to any claims for bad faith, it being the express intent of the parties hereto that this Policy-Holder Release and Indemnity Agreement fully and finally resolve any and all disputes, actual or threatened, known or unknown, contingent or mature, between Releasors and Releasees [Mutual Heritage].
The terms of the release are broad enough to include the alleged claims of breach of contract and bad faith.
D. Is United Heritage Entitled to an Award of Attorney Fees on Appeal?
United Heritage requests attorney fees on appeal under Idaho Code ยง 12-121. Under that statute, attorney fees will be awarded to the prevailing party when this Court is left with the abiding belief that the appeal was brought or pursued frivolously, unreasonably or without foundation. Courtney v. Big O Tires , Inc., 139 Idaho 821, 87 P.3d 930 (2003). In this case, the Hartmans made a good faith argument for the extension of existing law. We therefore decline to award attorney fees on appeal. Id.
IV. CONCLUSION
The judgment of the district court is affirmed. Costs on appeal, excluding attorney fees, are awarded to United Heritage.
Chief Justice SCHROEDER and Justices TROUT, BURDICK and JONES CONCUR.
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