Opinion ID: 2612211
Heading Depth: 2
Heading Rank: 2

Heading: Tortious Causes of Action.

Text: Collins contends that the lower court erroneously granted respondents' motion for summary judgment which dismissed appellant's causes of action for disparagement, intentional interference with prospective economic advantage and contractual relations, civil conspiracy, breach of fiduciary duty, wrongful foreclosure and chilling the sale against the respondents, First Federal, Wholey, Small and Dwyer. Collins contests that ruling, arguing that since all of the above claims for relief turned on questions of fact concerning the respondents' state of mind, summary judgment was an inappropriate disposition. See, e.g., Feminist Women's Health Center, Inc. v. Mohammad, 586 F.2d 530 (5th Cir.1978), cert. denied, 444 U.S. 924, 100 S.Ct. 262, 62 L.Ed.2d 180 (1979); Croley v. Matson Navigation Co., 434 F.2d 73 (5th Cir.1970). Collins' argument is grounded on a well-established rule of law. Nevertheless, a party against whom summary judgment is sought is [not] entitled to a trial simply because he has asserted a cause of action to which state of mind is a material element. There must be some indication that he can produce the requisite quantum of evidence to enable him to reach the jury with his claim. Hahn v. Sargent, 523 F.2d 461, 468 (1st Cir.1975), cert. denied, 425 U.S. 904, 96 S.Ct. 1495, 47 L.Ed.2d 754 (1976). See also Moran v. Bench, 353 F.2d 193 (1st Cir.1965), cert. denied, 384 U.S. 906, 86 S.Ct. 1341, 16 L.Ed.2d 359 (1966); Arsenault v. Allegheny Airlines, Inc., 485 F. Supp. 1373 (D.Mass. 1980), aff'd, 636 F.2d 1199 (1st Cir.1980), cert. denied, 454 U.S. 821, 102 S.Ct. 105, 70 L.Ed.2d 93 (1981). In Hahn, the appellant suffered a summary judgment as to his claim under 42 U.S.C. § 1983. Appellant's response to the respondent's motion for summary judgment in Hahn was comprised of four affidavits and documentary evidence which merely duplicated the allegations contained in appellant's complaint, asserted that certain issues could only be resolved by trial and promised that evidence would be offered at trial in support of the complaint. Hahn, 523 F.2d at 467. Although the First Circuit noted that great circumspection is required where summary judgment is sought on an issue involving state of mind, the district court's summary judgment was upheld. Id. at 468. In Moran, the district court granted a motion for summary judgment against appellant's claims under 42 U.S.C. 1983 and 1985. In support of the motion for summary judgment, the respondents had explicitly denied, in their affidavits, all allegations of improper behavior. Appellant's affidavit in response to the respondents' motion for summary judgment merely asserted that the respondents had conspired to deprive appellant of his civil rights. Appellant did not indicate precisely with whom the respondents conspired nor any facts tending to establish the existence of a conspiracy. Moran, 353 F.2d at 194. As in Hahn, the First Circuit again noted that courts should be cautious in resolving cases involving conspiracy or states of mind by summary judgment. Nevertheless, the Moran court held that by the bare use of the word `conspiracy,' with no supporting facts that tend to show the existence of an unlawful agreement or prima facie improper behavior, [appellant] has not met the burden of countering affidavits making such explicit denials. Id. at 195.
Several of Collins' claims for relief (disparagement, intentional interference with prospective economic advantage and contractual relations, and chilling the sale) share at least one similar element. See Crockett v. Sahara Realty Corp., 95 Nev. 197, 591 P.2d 1135 (1979) (interference with prospective advantage); Feminist Women's Health Center, supra (interference with contractual relations); Golden v. Tomiyasu, 79 Nev. 503, 387 P.2d 989 (1963), cert. denied, 382 U.S. 844, 86 S.Ct. 89, 15 L.Ed.2d 85 (1965) (chilling foreclosure sale). These claims are supported by Collins' allegation that First Federal, via its officers, Wholey, Small and Dwyer, wrongfully acted to discourage buyers from dealing with Collins, thereby preventing the sale or lease of the Reef Hotel prior to foreclosure and depressing the amount bid for the Reef Hotel at the foreclosure sale. In their motion for summary judgment, respondents produced affidavits from Dwyer, Wholey and Small stating that they never spoke to any of the prospective buyers that Collins produced before the foreclosure sale outside of his presence; that they never suggested to any of the prospective buyers that a better deal for the Reef Hotel could be made by First Federal after the foreclosure sale; and that they never acted to discourage prospective bidders from attending the foreclosure sale. In his deposition, Collins stated that he believed First Federal had purposefully discouraged several potential buyers by informing them that Collins was in default on his payment, that there were liens against the property, and that the entire loan was due and payable and not assumable. Additionally, Collins asserts that he believed First Federal's officers told prospective buyers not to deal with Collins but to wait until after the foreclosure sale and deal with First Federal directly. For the most part, Collins' allegations are based on inadmissible evidence. In his affidavit, Collins relies, to a large extent, on hearsay statements of the prospective buyers. Evidence introduced in support of or opposition to a motion for summary judgment must be admissible evidence. See NRCP 56(e). Although the party opposing a motion for summary judgment is entitled to all favorable inferences from the pleadings and documentary evidence, see Mullis v. Nevada National Bank, 98 Nev. 510, 654 P.2d 533 (1982), the opposing party is not entitled to build a case on the gossamer threads of whimsy, speculation and conjecture. Hahn, 523 F.2d at 467. Collins' affidavit in opposition to the motion for summary judgment failed to show that he could produce the requisite quantum of evidence to enable him to reach the jury with his claims. Thus, we affirm the summary judgment as to appellant's claims for disparagement, intentional interference with prospective economic advantage and contractual relations and chilling the foreclosure sale, even though these claims for relief turn on the respondents' state of mind. [8]
An actionable civil conspiracy is a combination of two or more persons who, by some concerted action, intend to accomplish some unlawful objective for the purpose of harming another which results in damage. Wise v. Southern Pacific Co., 223 Cal. App.2d 50, 35 Cal. Rptr. 652 (Cal. App. 1963); Bliss v. Southern Pacific Co., 212 Or. 634, 321 P.2d 324 (Or. 1958). Collins alleged that the respondents conspired with one another and with each or all of the prospective purchasers of the Reef Hotel to induce the prospective purchasers not to purchase or lease the Reef Hotel from Collins. The respondents, at that time, were First Federal and three of its officers, Dwyer, Wholey and Small. Agents and employees of a corporation cannot conspire with their corporate principal or employer where they act in their official capacities on behalf of the corporation and not as individuals for their individual advantage. Wise, 35 Cal. Rptr. at 665; Bliss, 321 P.2d at 328-329. If Dwyer, Small and Wholey were not acting as individuals for their individual advantage, no unlawful combination of persons would exist, upon which Collins could premise his claim of civil conspiracy. Thus, one of the material issues of fact regarding Collins' civil conspiracy claim for relief is whether Dwyer, Wholey and Small were acting as individuals for their individual advantage. [9] Collins' response to the motion for summary judgment did not contain any facts which would suggest that the respondents Wholey, Dwyer and Small were acting as individuals for their individual benefit. In fact, Collins' amended complaint alleged that the respondents, at all material times, acted in their representative, agency or employment capacity.... Although an action for civil conspiracy does include a state of mind issue which is usually inappropriate for disposition by way of summary judgment, Collins has failed to show that he could produce the requisite quantum of evidence to enable him to prove that Wholey, Dwyer and Small were acting as individuals in their individual capacities. See Hahn, supra . Accordingly, the summary judgment dismissing appellant's claim for civil conspiracy is affirmed. [10]
An action for the tort of wrongful foreclosure will lie if the trustor or mortgagor can establish that at the time the power of sale was exercised or the foreclosure occurred, no breach of condition or failure of performance existed on the mortgagor's or trustor's part which would have authorized the foreclosure or exercise of the power of sale. See Munger v. Moore, 11 Cal. App.3d 1, 89 Cal. Rptr. 323 (Cal. App. 1970); Spires v. Lawless, 493 S.W.2d 65 (Mo. App. 1973); League City State Bank v. Mares, 427 S.W.2d 336 (Tex.Civ.App. 1968). Therefore, the material issue of fact in a wrongful foreclosure claim is whether the trustor was in default when the power of sale was exercised. Collins argues that because the respondents breached the loan agreement by charging interest in excess of the contractual rate (8.5% per annum) and the legal rate (12.0% per annum), he was not in default when the power of sale was exercised by First Federal. Thus, Collins concludes First Federal wrongfully foreclosed his interest in the Reef Hotel. We have already held that Collins' usury claims concerning interest charged on undisbursed funds and certain ledger calculations must be remanded for trial. Additionally, we believe Collins' breach of contract claim survived the respondents' motion for summary judgment. [11] That claim is awaiting trial in the district court and is not now before this court. Because the material issue of fact in the wrongful foreclosure claim turns on whether the respondents breached the loan agreement by charging interest in excess of the legal and contractual rates, the lower court erred in granting a summary judgment dismissing the wrongful foreclosure claim. [12] Thus, the lower court's summary judgment dismissing the wrongful foreclosure claim is reversed and the cause of action is remanded for trial along with the remaining breach of contract claim and the usury claims concerning interest charged on undisbursed funds and the alleged bookkeeping errors. SPRINGER, MOWBRAY, STEFFEN and GUNDERSON, JJ., concur.