High court rules in Stockton suit

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PRIEST LAKE — The Idaho Supreme Court issued a series of rulings Wednesday in a real estate dispute involving NBA Hall of Famer and Gonzaga University player John Stockton and a business partner.

The litigation against the retired hardwood icon and Priest Lake businessman Mark Brinkmeyer revolves around a 65-acre piece of waterfront property at the south end of the lake. Valued at upwards of $2.4 million, the property was owned by Dan and Chris Warren, who put the land up for sale in 2015.

The Warren Brothers inked a sale agreement with Tricore Investments, a Coeur d’Alene company which planned to develop a housing project on the property.

The Warrens, however, ended up selling the land to Stockton and Brinkmeyer before the sale with Tricore closed, according to court documents. Stockton and Brinmeyer acquired the property to keep it from being developed, court records state.

Tricore filed suit in 1st District Court and won rulings in its favor following a six-day bench trial. Judge Barbara Buchanan ordered the Warrens to reconvey the property to Tricore. The court also ordered the Warrens, in addition to Stockton and Brinkmeyer, to pay $494,431 in attorneys fees and costs to Tricore, records show.

The Warrens, Brinkmeyer and Stockton appealed on more than a half-dozen issues, arguing Buchanan either issued erroneous rulings or abused her discretion.

However, a majority of the state’s top bench mostly affirmed Buchanan’s rulings in the matter, according to a 43-page opinion published on Wednesday.

The supreme court ruled Tricore held a valid and enforceable contract which the company did not balk at. The court also affirmed the district court’s rulings that the Warrens violated the Idaho Consumer Protection Act and that Stockton and Brinkmeyer unlawfully interfered with Tricore’s contract.

Buchanan rejected the argument that Stockton and Brinkmeyer didn’t interfere with the Tricore contract because Stockton held a verbal right of first refusal to buy the property. Buchanan called the claim “ludicrous” because both were sophisticated businessmen who routinely bought and sold multi-million dollar properties. The duo had access to proficient attorneys who would have told them that right was invalid because it needed to be in writing and contain a description of the property, Buchanan held.

The supreme court agreed.

"The district court's sentiments about the right of first refusal may be harsh, but its findings are supported by substantial and competent evidence," Chief Justice G. Richard Bevan wrote.

The high court, however, reversed Buchanan’s finding that the Warrens, Brinkmeyer and Stockton engaged in a civil conspiracy to keep the property out of Tricore’s hands. Warren argued on appeal that they could not interfere with their own contract, while Brinkmeyer and Stockton contended that they could not breach a contract they were not party to.

Tricore’s counsel called on the supreme court to reject that argument because it was not raised in the lower court. Bevan and other justices, however, noted that the supreme court has held that a party’s appellate argument can evolve on appeal if a substantive issue is properly preserved.

"Metaphorically, a party riding a horse into the appellate process that has been groomed and reshod for the appeal is not only permitted but expected. An argument is only precluded when the party rides in on an entirely different horse," Bevan wrote.

The supreme court also ruled that the district court abused its discretion by holding the Warrens, Stockton and Brinkmeyer equally responsible for Tricore’s attorney fees and costs. The court vacated the attorney fee award against Stockton and Brinkmeyer because they were solely liable on the tortious interference claim, which doesn’t qualify for the award of attorney fees.

Since Buchanan awarded the property to Tricore, which was represented by Sandpoint attorney Brent Featherston and Spokane firm Roberts Freebourn, no monetary damages were awarded. Although Tricore was only awarded $1,000 for after successfully arguing the Idaho Consumer Protection Act violations, the finding also triggered the right to attorney's fees and costs.

Keith Kinnaird can be reached at kkinnaird@bonnercountydailybee.com and followed on Twitter @KeithDailyBee.