Opinion ID: 1214373
Heading Depth: 1
Heading Rank: 11

Heading: Buyers' Claims Against CVC and Citibank

Text: The district court granted CVC and Citibank's motion for summary judgment solely on the basis that sellers' performance under the Agreement was impracticable and commercially frustrated. Therefore, buyers argue, if the district court's rationale was erroneous, then summary judgment should not have been granted. We agree. CVC and Citibank respond that the district court's determination was not erroneous, endorsing essentially the same arguments as sellers. In addition, they argue that summary judgment would have been proper on the alternative ground that CVC's and Citibank's conduct was not the proximate cause of the failure of the Agreement to close. Having resolved summary judgment based on impracticability of performance and commercial frustration, the district court did not address the proximate cause contention. Buyers acknowledge that to make a case of tortious interference with contract, they must prove that the acts of either CVC or Citicorp caused the breach. See V.C. Video, Inc. v. National Video, Inc., 755 F. Supp. 962, 970-71 (D. Kan. 1990). On summary judgment, the district court is required to resolve all facts and inferences which might reasonably be drawn from the evidence in favor of buyers. See Fletcher v. Nelson, 253 Kan. 389, 391, 855 P.2d 940 (1993) (rules relating to summary judgment reviewed). At the hearing on CVC and Citibank's motion for summary judgment, the district judge, after finding that the Agreement as a matter of law could not be performed, said, in part: But for that finding [of impracticability of performance and commercial frustration], Jenkins and Hood would be entitled to a trial on the issue of the alleged tortious interference as between CitiBank and CitiCorp with TSI Holdings during the term of the agreement between TSI and Jenkins and Hood. So that the ruling is narrow, it's based upon the same finding in the trial court. If I'm in error as to that ruling, then I'm in error as to this ruling. But if I am correctand I intend to beif I'm consistent in anything, I want to be consistent in my error just as much as I want to be consistent in my findings as I've made them. The district court granted the buyers' motion under K.S.A. 60-3703 to assert a claim against CVC and Citibank for punitive damages, applying the standard of Fusaro v. First Family Mtg. Corp., 17 Kan. App.2d 730, Syl. ¶ 3, 843 P.2d 737 (1992). Buyers argue that with this ruling, the district court implicitly held that a jury could reasonably find in their favor on the tortious interference claim. The district judge's September 1994 ruling on the K.S.A. 60-3703 motion to assert punitive damages was based on the record developed before trial. We have recently reviewed K.S.A. 60-3703 punitive damages amendment issues. See Fusaro v. First Family Mtg. Corp., 257 Kan. 794, 802, 897 P.2d 123 (1995). If sellers breached the Agreement, CVC and Citibank may have induced the breach. Buyers claim they did not find out about the problem with the release of the pledged TSI stock until March 12, 1993, 2 days after the meeting with Zeko and Luikart at TSI. Paul may have preferred to deal with CVC, as opposed to buyers, because of CVC's and Citibank's greater financing resources and business connections. The tortious interference issue is before us on summary judgment. The March 10, 1993, meeting of Luikart, Zeko, Paul, and other TSI personnel, and records of telephone calls between TSI and CVC or Citibank between March 10 and March 22, 1993, raise material issues of fact about whether CVC and Citibank tortiously interfered with sellers' performance of the Agreement.