Tacoma Auto Mall, Inc. v. Nissan North America, Inc.

279 P.3d 487, 169 Wash. App. 111
CourtCourt of Appeals of Washington
DecidedJune 26, 2012
DocketNo. 41356-6-II
StatusPublished
Cited by27 cases

This text of 279 P.3d 487 (Tacoma Auto Mall, Inc. v. Nissan North America, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tacoma Auto Mall, Inc. v. Nissan North America, Inc., 279 P.3d 487, 169 Wash. App. 111 (Wash. Ct. App. 2012).

Opinion

Van Deren, J.

¶1 Tacoma Auto Mall Inc. (TAM) appeals the trial court’s summary judgment order finding that it does not have standing to assert a claim against Nissan North America Inc. (NNA) for violation of the Washington manufacturers’ and dealers’ franchise agreements act (Franchise Act), chapter 46.96 RCW. TAM also appeals the trial court’s dismissal on summary judgment of its claims against NNA alleging promissory estoppel, breach of a unilateral contract, and violation of a third-party beneficiary’s rights in its attempted purchase of a Puyallup Nissan dealership. NNA cross appeals the trial court’s (1) failure to grant summary judgment on TAM’s claims of tortious interference and lost profit damages and (2) rejection of NNA’s contention that the state Franchise Act precluded all of the purchaser’s common law claims based on promissory estoppel, third-party beneficiary status, implied contract, tortious interference, and damages. We affirm the trial court’s order granting summary judgment dismissal of TAM’s claims of promissory estoppel, third-party beneficiary contract, unilateral implied contract, and violation of the Franchise Act. We reverse the trial court’s denial of summary judgment on TAM’s claims of tortious interference and lost profit damages and remand for dismissal of TAM’s suit.

FACTS

¶2 TAM, formerly Tacoma Dodge Inc., was formed in 1972 and operated for many years as a Dodge automobile dealership under a franchise agreement with Chrysler Motors Inc. In June 2009, the dealership changed its name to Tacoma Auto Mall following Chrysler Motors’ bankruptcy and termination of the Dodge franchise.

¶3 When TAM discovered that Puyallup Nissan was for sale, TAM’s owner entered into an agreement with Puyallup Nissan’s owner to purchase Puyallup Nissan’s assets. Under the terms of the franchise agreement between [117]*117Puyallup Nissan and NNA, NNA had to consent to the sale of the franchise to TAM.

¶4 NNA refused to consent to TAM as a Nissan franchisee and, therefore, refused to consent to the sale by Puyallup Nissan. TAM sued NNA, asserting that NNA unreasonably withheld consent to the sale by Puyallup Nissan. It alleged that NNA’s actions violated the Franchise Act, specifically former RCW 46.96.200 (1994). It also alleged that NNA’s actions constituted tortious interference with the contractual relationship between TAM and Puyallup Nissan, that NNA should be promissorily estopped from refusing consent, that TAM is a third-party beneficiary of the contract between NNA and Puyallup Nissan, that NNA breached an implied contract with TAM by refusing consent, and that TAM is entitled to specific performance of that implied contract.

¶5 The trial court granted NNA’s summary judgment motion on TAM’s claims of promissory estoppel, third-party beneficiary contract, unilateral implied contract, and violation of the Franchise Act. The trial court denied NNA’s motion on TAM’s claims of tortious interference and damages for lost profits, and it rejected NNA’s argument that the Franchise Act preempts TAM’s common law tort claims. The trial court also certified that the order involved a controlling question of law as to which there is substantial ground for a difference of opinion and that immediate review of the order by the Court of Appeals may materially advance the ultimate termination of the litigation. Both parties successfully sought discretionary review of the trial court’s orders.

ANALYSIS

I. Standard of Review

¶6 In reviewing a summary judgment order, we engage in the same inquiry as the trial court. King County Fire Prot. Dist. No. 16 v. Hous. Auth., 123 Wn.2d 819, 825, 872 [118]*118P.2d 516 (1994). “Summary judgment is appropriate ‘if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’ ” Atherton Condo. Apartment-Owners Ass’n Bd. of Dirs. v. Blume Dev. Co., 115 Wn.2d 506, 516, 799 P.2d 250 (1990) (quoting CR 56(c)). “A material fact is one upon which the outcome of the litigation depends in whole or in part.” Atherton, 115 Wn.2d at 516. We consider the evidence in the light most favorable to the nonmoving party. Gerken v. Mut. of Enumclaw Ins. Co., 74 Wn. App. 220, 224-25, 872 P.2d 1108 (1994).

¶7 A defendant in a civil action is entitled to summary judgment if he can show that there is an absence or insufficiency of evidence supporting an element that is essential to the plaintiff’s claim. Young v. Key Pharm., Inc., 112 Wn.2d 216, 225, 770 P.2d 182 (1989). “‘In such a situation, there can be no genuine issue as to any material fact, since a complete failure of proof concerning an essential element of the nonmoving party’s case necessarily renders all other facts immaterial.’ ” Young, 112 Wn.2d at 225 (internal quotation marks omitted) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S. Ct. 2548, 91 L. Ed. 2d 265 (1986)). The plaintiff may not rely on the allegations in the pleadings but must set forth specific facts showing that a genuine issue exists. Young, 112 Wn.2d at 225.

II. Standing

¶8 TAM first asserts that the trial court erred in dismissing its claim that NNA violated former RCW 46.96.200. We first determine whether TAM has standing to assert a violation of the Franchise Act under these circumstances.

¶9 Washington courts apply a two-part test to determine whether a party has standing. Nelson v. Appleway Chevrolet, Inc., 160 Wn.2d 173, 186, 157 P.3d 847 (2007); [119]*119Grant County Fire Prot. Dist. No. 5 v. City of Moses Lake, 150 Wn.2d 791, 802, 83 P.3d 419 (2004). First, we ask whether the interest asserted is within the zone of interests the statute in question protects. Nelson, 160 Wn.2d at 186; Grant County, 150 Wn.2d at 802. Second, we consider whether the party seeking standing has suffered an injury in fact. Nelson, 160 Wn.2d at 186; Grant County, 150 Wn.2d at 802. “Both tests must be met by the party seeking standing.” Branson v. Port of Seattle, 152 Wn.2d 862, 875-76, 101 P.3d 67 (2004); High Tide Seafoods v. State, 106 Wn.2d 695, 702, 725 P.2d 411 (1986) (noting that even if the plaintiffs could show adequate injury, they would fail the zone of interest test).

¶10 When evaluating whether a party’s interests are within the zone of interests a statute protects, we look to the statute’s general purpose. Branson, 152 Wn.2d at 876 n.7. If the statute in question was not designed to protect a party’s interests, it is not within the zone of interest and its assertion of standing fails. Grant County, 150 Wn.2d at 803.

¶11 The legislature set forth the purpose of the Franchise Act as follows:

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279 P.3d 487, 169 Wash. App. 111, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tacoma-auto-mall-inc-v-nissan-north-america-inc-washctapp-2012.