Litster Frost v. Idaho Injury Law Group
Annotate this CaseThis appeal involved a dispute over the division of a personal injury settlement between a predecessor law firm, a successor law firm, and a client who was subjected to unfair and deceptive trade practices. Litster Frost Injury Lawyers (“Litster”) represented Melissa Gryder for approximately three years before Idaho Injury Law Group (“IILG”) took over representation and settled Gryder’s case roughly two months later for $120,000. Gryder had followed her attorney, Seth Diviney, from Litster to his newly formed firm, IILG. After the personal injury claim was settled, Litster sued IILG and Gryder, claiming a portion of the settlement for attorney’s fees and costs it incurred. Gryder, through Diviney as her attorney, counterclaimed that Litster violated the Idaho Consumer Protection Act (“ICPA”) and could not recover against the settlement fund. The district court ruled on a motion for partial summary judgment that Litster committed an unfair and deceptive trade practice in violation of the ICPA. However, by the time of the bench trial, the district court understood, based on representations by Diviney, that only Litster and IILG had a stake in the disputed portion of the fund—not Gryder. From this, the district court divided the disputed portion of the fund between Litster and IILG. The Idaho Supreme Court reversed the district court’s decision and remanded this case for further proceedings so the district court could balance the equities between Litster, IILG, and Gryder.
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