Kinniburgh v. Garrity

798 P.2d 102, 244 Mont. 350, 47 State Rptr. 1655, 1990 Mont. LEXIS 279
CourtMontana Supreme Court
DecidedSeptember 6, 1990
Docket89-114
StatusPublished
Cited by12 cases

This text of 798 P.2d 102 (Kinniburgh v. Garrity) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kinniburgh v. Garrity, 798 P.2d 102, 244 Mont. 350, 47 State Rptr. 1655, 1990 Mont. LEXIS 279 (Mo. 1990).

Opinions

JUSTICE McDONOUGH

delivered the Opinion of the Court

The plaintiffs appeal the judgment of the Montana First Judicial District Court, Lewis and Clark County, sitting without a jury, entering judgment in favor of the defendants on the plaintiffs’ claim of legal malpractice. The claim arises from their earlier suit against Burlington Northern (BN) that involved a series of timber contracts between the plaintiffs and BN in which the defendants here represented the plaintiffs. The District Court entered judgment in favor of the defendants on the grounds that plaintiffs’ underlying suit did not state a claim against BN and therefore the admitted negligence of Garrity did not proximately cause any damage to the plaintiffs. We affirm.

The plaintiffs attempt to frame several issues as the basis of appeal. We consolidate these issues into the following:

(1) Did the District Court err in holding that the plaintiffs’ original complaint against BN failed to state a claim for relief?

Determination of this issue will enable us to dispose of the principal issue on appeal:

(2) Did the District Corut err in holding that the admitted negligence of Garrity and the alleged misrepresentations of Garrity concerning the plaintiffs’ chances of success were not the proximate cause of any damage claimed by the plaintiffs?

[352]*352The plaintiffs are independent businessmen who routinely entered into contracts with BN to harvest timber on BN lands, build roads to accommodate such harvest, and haul logs to lumber mills. Contracts were for individual logging jobs or related operations. The contracts were let to bid or negotiated depending upon what BN thought was best for its interests on a particular job.

In 1979, the plaintiffs were part of a group of independent logging contractors who, in apparent dissatisfaction with BN, formed an informal organization and attempted to pressure BN into changing some of its contracting procedures. The group met with BN to discuss these issues, however, nothing much happened.

The plaintiffs contend that in retaliation for this organization effort they were not offered further contracts by BN. They hired the defendant Garrity to sue BN in federal court primarily on theories of breach of the implied covenant of good faith and fair dealing in the employment relationship, deprivation of civil rights under 42 U.S.C. § 1983, and interference with contract.

Garrity took the case on a contingent fee basis and filed suit on behalf of the plaintiffs on January 25, 1982. At the outset he thought that the civil rights claim had the best chance of success. After this Court’s decision in Gates v. Life of Montana (1982), 196 Mont. 178, 638 P.2d 1063, giving at-will employees expanded employment protections, Garrity thought this theory might be expanded to cover the plaintiffs’ situation, and this became his principal legal theory.

Garrity told Kiser and the other plaintiffs that they had a good chance of success in their suit against BN, but that the “bad faith” aspects of the suit were dependent upon a favorable ruling from the trial judge. The findings indicate that if plaintiff Kiser had not been assured of a reasonable chance of success by Garrity, he would not have authorized the filing of the lawsuit and he would have gone back to work as he felt that a fruitless lawsuit endangered his employability with other timber operators. The United States District Court for the District of Montana, Great Falls Division, ultimately disposed of the case in its entirety by entering judgment in favor of BN on all claims on January 4, 1984.

An attempted appeal of this judgment was never decided on its merits. Garrity mistakenly counted the 30 day appeal period as ending on February 4,1984, a Saturday, when the time deadline was actually February 3, 1984, a Friday. As a result, Garrity filed the required Notice of Appeal one day late.

[353]*353The plaintiffs filed a malpractice suit against Garrity alleging negligence and misrepresentation on February 14, 1985. The action was tried without a jury and judgment was entered in favor of the defendants. A motion to amend the findings of fact and conclusions of law was filed and the court issued an order granting a portion of the amendments. The District Court concluded that there were no claims under the Civil Rights Act or under the theory of contractual interference, and that the claims of breach of the implied covenant of good faith and fair dealing were barred under Nordlund v. School District No. 14 (1987), 227 Mont. 402, 738 P.2d 1299. The plaintiffs now appeal the judgment in favor of the defendants raising the aforementioned issues.

I.

On appeal the plaintiffs do not contest the invalidity of the civil rights claims in their case against BN. However, they do argue that the District Court erred in its interpretation of Nordlund as precluding recovery on their claims for breach of the implied covenant of good faith and fair dealing. They also argue that our recent decision clarifying causes of action for breach of the implied covenant, Story v. City of Bozeman (1990), [242] Mont. [436,] 791 P.2d 767, 47 St.Rep. 850, would afford them a cause of action under this theory if we would allow the parties to argue the present facts under the criteria adopted in Story.

Nordlund is clearly dispositive of the underlying claim against BN for breach of the implied covenant. In Nordlund the plaintiff school teacher alleged that the defendant school district breached the implied covenant of good faith and fair dealing by arbitrarily and capriciously not renewing his employment contract. After being given a series of two year contracts, the school board voted to give superintendent Nordlund a one year employment contract. Under the law applicable at the time, “the nature and extent of an implied covenant of good faith and fair dealing is measured in a particular contract by the justifiable expectations of the parties." Nicholson v. United Pacific Insurance (1985), 219 Mont. 32, 41, 710 P.2d 1342, 1348. We held in Nordlund that under the express, clear, and 'unambiguous language of the contract, the plaintiff could have no justifiable expectation of continued employment. Nordlund, 738 P.2d at 1302, citing Maxwell v. Sisters of Charity of Providence (D. Mont.1986), 645 F.Supp. 937, 939.

[354]*354Here, BN offered the plaintiffs, independent contractors, contracts for discrete logging jobs or related tasks, by taking bids or negotiating the contract terms. These contracts were for individual jobs and cannot be the basis for a continued expectation that BN would offer such contracts to an independent contractor in the future. BN’s conduct cannot be characterized as arbitrary, capricious, or unreasonable under the applicable law where plaintiffs are independent contractors with no express contract of employment, and were threatening to sue BN.

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Kinniburgh v. Garrity
798 P.2d 102 (Montana Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
798 P.2d 102, 244 Mont. 350, 47 State Rptr. 1655, 1990 Mont. LEXIS 279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kinniburgh-v-garrity-mont-1990.