Four Nines Gold, Inc. v. 71 Const., Inc.

809 P.2d 236, 1991 WL 50543
CourtWyoming Supreme Court
DecidedApril 12, 1991
Docket90-227
StatusPublished
Cited by48 cases

This text of 809 P.2d 236 (Four Nines Gold, Inc. v. 71 Const., Inc.) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Four Nines Gold, Inc. v. 71 Const., Inc., 809 P.2d 236, 1991 WL 50543 (Wyo. 1991).

Opinion

809 P.2d 236 (1991)

FOUR NINES GOLD, INC., a Colorado corporation registered to do business in Wyoming, Appellant (Plaintiff),
v.
71 CONSTRUCTION, INC., a Wyoming corporation, Appellee (Defendant).

No. 90-227.

Supreme Court of Wyoming.

April 12, 1991.

*237 Thomas A. Fasse of Miller and Fasse, Riverton, for appellant.

Thomas F. Reese of Brown & Drew, Casper, for appellee.

Before URBIGKIT, C.J., and THOMAS, CARDINE, MACY and GOLDEN, JJ.

CARDINE, Justice.

Four Nines Gold, Inc. (Four Nines) brought this action against 71 Construction, Inc. to recover damages for wrongful interference with contractual relationship, for breach of contract, and for breach of a covenant of good faith and fair dealing. The trial court granted summary judgment in favor of 71 Construction, Inc.

Four Nines brings this appeal presenting the following issues:

"1. Did the court err in ruling that there was no genuine issue of material fact in dismissing plaintiff/appellant's claim for intentional interference with a prospective contractual relationship and that the defendant/appellee was entitled to judgment as a matter of law?
"2. Did the court err in ruling that there was no genuine issue of material fact in dismissing plaintiff/appellant's claim for breach of contract and that the defendant/appellee was entitled to judgment as a matter of law?
"3. Did the court err in ruling that there was no genuine issue of material fact in dismissing plaintiff/appellant's claim for breach of the implied covenant of good faith and fair dealing, and that the defendant/appellee was entitled to judgment as a matter of law?"

We affirm.

On July 12, 1989, the city of Riverton advertised for bids for a street construction project. The deadline for submitting bids was July 28, 1989, at 2 p.m. After reviewing the plans for the project, Bill DeLapp, president of Four Nines, contacted Steve Loftin, president of 71 Construction, informed Loftin that Four Nines would bid on the project as general contractor, and asked Loftin to supply a subcontractor bid for aggregate bituminous surfacing.

On the morning of July 28th, Loftin submitted 71 Construction's subcontractor bid by telephone. 71 Construction's bid totaled $88,316. Four Nines incorporated 71 Construction's bid into its bid which it submitted to the city of Riverton before the 2 p.m. deadline. That day, the city of Riverton engineer informed Four Nines that it had submitted the lowest bid.

The Riverton city council was scheduled to consider the bids on August 1. Before any action was taken on the bids, Loftin realized he had made a mistake on 71 Construction's bid. Loftin had neglected to include the cost of asphalt oil in computing the bid, which resulted in the bid being about $30,000 lower than it should have been. Loftin first attempted to contact Four Nines to alert the company to the problem. He was unsuccessful, so he called the project engineer, the city engineer, and the city attorney. The city engineer and attorney determined that, as a result of 71 Construction's error, a substantial material defect had been made in the bids. The city engineer sent a memorandum alerting the city council to the problem and recommending that all bids be rejected. The council rejected all bids. The bid information sheet provided that the city could reject any and all bids. Wyoming Statute 15-1-113(c) provides that a city can reject all bids for a public improvement contract if none serve the public interest. When the project was rebid, Four Nines was not the low bidder and did not receive the contract.

*238 Four Nines filed suit against 71 Construction in the Ninth District Court in Fremont County on December 29, 1989. The suit alleged that 71 Construction intentionally interfered with a prospective contractual relationship, breached a contract with Four Nines and breached an implied covenant of good faith and fair dealing. 71 Construction's answer was a general denial and objection to improper venue. Pursuant to stipulation between the parties, venue was moved to Natrona County. 71 Construction was granted summary judgment on August 6, 1990. The trial court held that 71 Construction was attempting to protect its own interest and, therefore, did nothing improper by informing the city of the mistake. The trial court held that 71 Construction did not breach a contract because it was not bound to perform a contract until the city accepted Four Nines' bid. It also held that 71 Construction did not violate a covenant of good faith and fair dealing because it did not act dishonestly.

Summary judgment is proper only when there are no genuine issues of material fact and the prevailing party is entitled to judgment as a matter of law. W.R.C.P. 56(c). We review a summary judgment in the same light as the district court, using the same materials and following the same standards. We examine the record from the vantage point most favorable to the party opposing the motion, and we give that party the benefit of all favorable inferences which may fairly be drawn from the record. Wagner v. First Wyoming Bank, N.A. Laramie, 784 P.2d 224, 226 (Wyo. 1989).

This court recognizes intentional interference with a prospective contractual relationship as a cause of action in tort. Martin v. Wing, 667 P.2d 1159 (Wyo. 1983). In Martin, at 1162, we adopted Restatement, Second, Torts § 766B, which states:

"One who intentionally and improperly interferes with another's prospective contractual relation (except a contract to marry) is subject to liability to the other for the pecuniary harm resulting from loss of the benefits of the relation, whether the interference consists of
"(a) inducing or otherwise causing a third person not to enter into or continue the prospective relation or
"(b) preventing the other from acquiring or continuing the prospective relation."

Malice motivating the interference need not be shown. Toltec Watershed Improvement District v. Johnston, 717 P.2d 808, 814 (Wyo. 1986). However, if the interference is not improper, a necessary element of the tort is lacking. Allen v. Safeway Stores, 699 P.2d 277, 280 (Wyo. 1985). 71 Construction's interference in this case was not improper for two reasons.

First, truthful statements, whether solicited or volunteered, are not actionable as intentional interference with prospective contractual relations. Prazma v. Kaehne, 768 P.2d 586, 590 (Wyo. 1989). See also Restatement, Second, Torts § 772(a) (1979), which states:

"One who intentionally causes a third person not to perform a contract or not to enter into a prospective contractual relation with another does not interfere improperly with the other's contractual relation, by giving the third person
"(a) truthful information * * *."

In its brief, Four Nines discusses the possible consequences had the city of Riverton accepted its bid. These possible consequences included binding 71 Construction to its low bid or having the city bear the added costs. Four Nines does not dispute that 71 Construction made an error in submitting its subcontractor bid. It does not allege that 71 Construction's report of the mistake nor the manner in which 71 Construction reported the mistake was untrue.

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Bluebook (online)
809 P.2d 236, 1991 WL 50543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/four-nines-gold-inc-v-71-const-inc-wyo-1991.