Opinion ID: 2622336
Heading Depth: 2
Heading Rank: 2

Heading: Intentional Interference with Contract

Text: [¶ 20] The City asserted a counterclaim for intentional interference with a contract against the Landowners for delaying the construction of the sewer line by placing a pump house in the path of the construction. A representative of Cyclone averred that it placed the pump house and the other plaintiffs were not involved. The district court ruled that Cyclone, alone, was responsible for the construction delay and granted the City's motion for summary judgment for the extra amount it paid Western because of the delay. [¶ 21] This Court has adopted the definition of the tort of intentional interference with a contract set out in the Restatement (Second) of Torts, § 766 (1979): `One who intentionally and improperly interferes with the performance of a contract (except a contract to marry) between another and a third person by inducing or otherwise causing the third person not to perform the contract, is subject to liability to the other for the pecuniary loss resulting to the other from the failure of the third person to perform the contract.' Davenport v. Epperly, 744 P.2d 1110, 1111 (Wyo.1987), quoting Toltec Watershed Improvement District v. Johnston, 717 P.2d 808, 813-814 (Wyo.1986). First Wyoming Bank, Casper, v. Mudge, 748 P.2d 713, 715 (Wyo.1988). See also, Birt v. Wells Fargo Home Mortgage Inc., 2003 WY 102, ¶ 71, 75 P.3d 640, 662-63 (Wyo.2003). The elements of a claim of intentional interference with a contract are: (1) the existence of a contract between the plaintiff and a third party; (2) the defendant's knowledge of the contract; (3) the defendant's intentional and improper interference with the contract which induced or caused a breach; and (4) resulting damages. Mudge, 748 P.2d at 715. See also, Gore v. Sherard, 2002 WY 114, ¶ 12, 50 P.3d 705, 710 (Wyo.2002); Texas West Oil and Gas Corp. v. Fitzgerald, 726 P.2d 1056, 1062 (1986); Toltec Watershed Improvement District v. Johnston, 717 P.2d at 813-814. [¶ 22] On appeal, Cyclone claims that the evidence was contested on the third element of the tort and, consequently, summary judgment was not warranted. In particular, it argues that its action was justified and proper because it was seeking to protect its asserted property interest in Mohan Road. Cyclone maintains that summary judgment was improper because genuine questions of material fact existed concerning the reasonableness of its action and the district court should have analyzed the factors identified in § 766 in determining whether its actions were improper or justified. Those factors are: (a) the nature of the actor's conduct, (b) the actor's motive, (c) the interests of the other with which the actor's conduct interferes, (d) the interests sought to be advanced by the actor, (e) the social interests in protecting the freedom of action of the actor and the contractual interests of the other, (f) the proximity or remoteness of the actor's conduct to the interference and (g) the relations between the parties. Toltec, 717 P.2d at 814; Mudge, 748 P.2d at 716-17. [¶ 23] This Court recognizes Restatement (Second) of Torts § 773 (1979), which states that one who interferes with a contract by asserting a bona fide claim in good faith is not liable for tortious interference with contractual relations. Mudge, 748 P.2d at 717. See also, Toltec, 717 P.2d at 814. Section 773 states: One who, by asserting in good faith a legally protected interest of his own or threatening in good faith to protect the interest by appropriate means, intentionally causes a third person not to perform an existing contract or enter into a prospective contractual relation with another does not interfere improperly with the other's relation if the actor believes that his interest may otherwise be impaired or destroyed by the performance of the contract or transaction. [¶ 24] The district court found that the City had demonstrated that there was no disputed issues of fact as to Cyclone's interference and it was improper as a matter of law: Cyclone's placement of the pump house to stop construction of the trunk line was improper. Cyclone took the law into its own hands and exercised vigilante justice. Other appropriate actions were available to Cyclone to exercise or enforce its rights. Wyoming law provides avenues to protect one's rights. It doesn't matter that Cyclone's motive was to force the City and Western to comply with prior agreements. It doesn't matter that Cyclone believed it was protecting its economic interest. Cyclone's actions were inappropriate. Cyclone's actions interfered with and negatively impacted other parties' interests. Placing a large piece of oil field equipment in front of the construction site and blocking construction equipment was not the appropriate action for Cyclone to take, no matter its reasoning. Wyoming does not condone vigilante justice. Cyclone's actions were improper as a matter of law. The district court continued: Comment a to § 773 clarifies the rule. It states: The rule is of narrow scope and protects the actor only when (1) he has a legally protected interest, and (2) in good faith asserts or threatens to protect it, and (3) the threat is to protect it by appropriate means. Restatement (Second) of Torts § 773, cmt. a. . . . . Cyclone's ownership interest in Mohan Road was a legally protected interest. Cyclone had justification to protect its interest. But protection of that interest must be by appropriate means. Placing a pump house in front of the construction site and equipment in order to stop the construction is not appropriate means. Other appropriate options were available to Cyclone. Cyclone was not justified in the way it attempted to protect its interest in Mohan Road. [¶ 25] The district court's ruling is supported by the record. It is undisputed that Cyclone placed the pump house on Mohan Road in order to delay the sewer line construction. There was no showing that Cyclone had the legal right to place a piece of equipment on the road. Even if Cyclone's asserted property interest in the road was legitimate, it did not have a right to block the construction by placing a piece of equipment in the road. [¶ 26] Moreover, Cyclone stated in its response to the City's interrogatories that: The placement was only done with the intent of persuading the City of Gillette and its contractor to fulfill previous commitments about keeping Mohan Road open to Highway 59 so as not to interfere with individual businesses located on Mohan Road. [Cyclone] was willing to move the equipment once the City and/or contractor fulfilled commitments made in meetings of November and December 2004 to keep the road clean and open to Highway 59. Thus, Cyclone admitted that it placed the equipment in the road to force the City to comply with its promise to keep the road open during the construction. This motivation had nothing to do with Cyclone's asserted property interest in the road. Thus, the undisputed facts showed that Cyclone's action was improper and a weighing of the factors set out in Toltec and § 766 was not required. The district court properly held, as a matter of law, Cyclone's interference with the City's contract with Western was improper. [¶ 27] Affirmed.