Cheney v. Smith

This litigation arises from dissolution of a partnership. As part of a settlement between the partners, appellants Smith delivered a promissory note to respondent Cheney. Cheney later sued to collect the note but the district court found that Cheney had procured the note in breach of his fiduciary duties to the partnership. The court adjudged the Smiths to be free of any liability on the note. The Smiths requested an award of attorney fees under I.C. § 12-120(2). The district judge denied the request, holding that the statute applies only to promissory notes relating to sales of goods. The…