Rebecca Bextel and Jonathan Bextel v. Fork Road LLC., a Wyoming Limited Liability Company Albert E. Hancock, III, and Susan A. Hancock

2020 WY 134, 474 P.3d 625
CourtWyoming Supreme Court
DecidedOctober 19, 2020
DocketS-19-0286
StatusPublished
Cited by3 cases

This text of 2020 WY 134 (Rebecca Bextel and Jonathan Bextel v. Fork Road LLC., a Wyoming Limited Liability Company Albert E. Hancock, III, and Susan A. Hancock) 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.

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Rebecca Bextel and Jonathan Bextel v. Fork Road LLC., a Wyoming Limited Liability Company Albert E. Hancock, III, and Susan A. Hancock, 2020 WY 134, 474 P.3d 625 (Wyo. 2020).

Opinion

IN THE SUPREME COURT, STATE OF WYOMING

2020 WY 134

OCTOBER TERM, A.D. 2020

October 19, 2020

REBECCA BEXTEL and JONATHAN BEXTEL,

Appellants (Plaintiffs),

v. S-19-0286 FORK ROAD LLC., a Wyoming limited liability company; ALBERT E. HANCOCK, III, and SUSAN A. HANCOCK,

Appellees (Defendants).

Appeal from the District Court of Teton County The Honorable Timothy C. Day, Judge

Representing Appellant: Richard R. Thomas and Vonde M. Smith, Smith LC, Jackson, Wyoming. Argument by Mr. Thomas.

Representing Appellee Fork Road LLC: Mark D. Sullivan, Mark D. Sullivan, P.C., Wilson, Wyoming.

Representing Appellees Albert E. Hancock, III and Susan A. Hancock: Curtis B. Buchhammer, Buchhammer & Ward, P.C., Cheyenne, Wyoming.

Before DAVIS, C.J., and FOX, KAUTZ, BOOMGAARDEN, and GRAY, JJ.

NOTICE: This opinion is subject to formal revision before publication in Pacific Reporter Third. Readers are requested to notify the Clerk of the Supreme Court, Supreme Court Building, Cheyenne, Wyoming 82002, of any typographical or other formal errors so that correction may be made before final publication in the permanent volume. BOOMGAARDEN, Justice.

[¶1] Spouses Rebecca Bextel and Jonathan Bextel appeal the district court’s dismissal of their first amended complaint (complaint) under W.R.C.P. 12(b)(6) and (c). The complaint asserts defamation per se, tortious interference with a prospective economic advantage and business expectancy, and false light invasion of privacy claims against spouses Albert E. Hancock, III and Susan A. Hancock, and Fork Road, LLC (Fork Road). 1 We affirm.

ISSUES

[¶2] We consolidate and restate the Bextels’ seven issues as:

I. Whether the Bextels state defamation per se claims.

II. Whether the Bextels state a prima facie tort claim under Wyoming common law.

III. Whether Wyoming recognizes false light invasion of privacy, as stated in the Restatement (Second) of Torts § 652E, and, if so, whether the Bextels state a false light invasion of privacy claim.

BACKGROUND

Facts Alleged in the Complaint

[¶3] The standards of review for dismissal under W.R.C.P. 12(b)(6) and (c) require we accept the facts stated in the complaint as true. See Dockter v. Lozano, 2020 WY 119, ¶ 6, 472 P.3d 362, 364 (Wyo. 2020); Four B Properties, LLC v. Nature Conservancy, 2020 WY 24, ¶ 65, 458 P.3d 832, 848 (Wyo. 2020). We draw the following facts from the complaint.

[¶4] The Bextels’ three claims stem from a lease dispute involving a commercial building in Jackson, Wyoming (the Building). In 2011, Knobloch Group B, LLC (Knobloch Group) owned the Building. Its principal, Carl Knobloch, formed MBC to sublease office suites and provide the public business services in the Building. Mr. Knobloch hired Ms. Bextel to manage MBC’s day-to-day business. She did so until 2016, when the Bextels bought MBC and entered into a five-year lease with Knobloch Group for office space in the Building. MBC continued subleasing office space to subtenants.

[¶5] The Building changed ownership twice over the next two years. In April 2017, Knobloch Group sold the Building to JAMD, LLC (JAMD) and assigned JAMD the MBC lease. Around January 2018, JAMD agreed to sell the Building to the Hancocks. The

1 Mr. Hancock is a member and the manager of Fork Road. We refer to the Appellees collectively as the Hancocks.

1 Hancocks told the Bextels they had no desire to be landlords and there would be no changes. But the Hancocks actually believed the Bextels were making too much money through MBC. Accordingly, the Hancocks conspired with others to usurp MBC’s business and destroy the Bextels’ prospective economic advantage in MBC. With JAMD’s help, the Hancocks fabricated a lease breach and Fork Road filed a groundless claim for forcible entry and detainer in circuit court.

[¶6] Two events central to the lease dispute and this appeal occurred on April 23, 2018. First, the Hancocks entered the Building during business hours to deliver a letter to MBC’s subtenants regarding the Building’s change in ownership and how it would affect those subtenants. The letter stated:

FORK ROAD LLC, a Wyoming limited liability company

...

April 23, 2018

RE: Tenancy in 690 W. Broadway, Suite 200

Dear Tenants of Suite 200:

We recently purchased 690 W. Broadway, Suite 200. We are writing to formally notify you of this change in ownership and discuss how these changes affect your business. Although there has been a change in ownership, we wish to keep the disruption to your work environment as minimal as possible.

As you may know, Mountain Business Center (MBC) has historically leased Suite 200 from the owner of the 690 building. We believe each of you holds a sublease, whether formal or informal, with MBC. Once MBC’s tenancy concludes, which will be before the end of this month, MBC will no longer have tenant’s rights to occupy Suite 200. Without a lease of Suite 200, MBC will not have the right or ability to sublease your office space to you. However, we value each of you as tenants and would like your tenancy in our office space to continue. Therefore, we would like to enter into new lease agreements with each of you in order to provide you with assurances regarding your tenancy moving forward.

By the end of this week, we will provide each of [you] with a new six- or twelve-month lease agreement. Under these new

2 lease agreements, our company will be the landlord and you will be the tenants. Further, we wish to honor your existing rental payments. This new lease arrangement will streamline your tenancy without additional financial burden to you or your companies. To the extent that you have paid a security deposit to MBC, we will be seeking transfer [of] that payment from MBC to us so that you will not need to pay a new security deposit. Further, you should not plan to pay May rent to MBC. MBC has likewise been informed that they are not to collect May rents from its subtenants. We are looking forward to running professional and efficient workspace.

Please feel free to contact us with any questions regarding this letter. We can be reached at the contact information listed above.

Very Truly Yours,

Bud Hancock

Second, during a discussion in the main hallway of the Building Mr. Hancock became agitated and said to Ms. Bextel, “You’re not being honest with me…You’re lying to me, and you know it…Don’t lie to me.” 2 MBC’s subtenants heard these statements.

Procedural History

[¶7] The Bextels sued Mr. Hancock, Ms. Hancock, and Fork Road for defamation per se based on the verbal statements and letter, “tortious interference with prospective economic advantage and business expectancy” based on the Hancocks’ “wrongful conduct,” and false light invasion of privacy based on the letter. 3 They attached a copy of the letter to the complaint.

[¶8] The Hancocks moved to dismiss the Bextels’ claims for defamation per se and tortious interference under W.R.C.P. 12(b)(6), without addressing the false light invasion of privacy claim. The court granted this motion on grounds that the defamation per se claim failed as a matter of law and the “summarily crafted” tortious interference claim was inadequately pled.

2 We refer to these as “the verbal statements.” 3 Ms. Bextel initially filed a complaint for defamation per se against Mr. Hancock in May 2018 (Civil Action No. 17742). In August, the Bextels filed a separate complaint for defamation per se and tortious interference with prospective economic advantage and business expectancy against Mr. Hancock, Ms. Hancock, and Fork Road (Civil Action No. 17793). Later that month, the Bextels filed their first amended complaint and moved to consolidate the actions.

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2020 WY 134, 474 P.3d 625, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rebecca-bextel-and-jonathan-bextel-v-fork-road-llc-a-wyoming-limited-wyo-2020.