Roth v. First Sec. Bank of Rock Springs, Wyo.

• Decision Date: 18 July 1984
• Docket Number: No. 83-193,83-193
• Citation: 684 P.2d 93
• Parties: James E. ROTH, Westgate Investments, and Adams Sales, Inc., Appellants (Third- Party Plaintiffs), v. FIRST SECURITY BANK OF ROCK SPRINGS, WYOMING, a banking corporation, George Stahla and Keith West, Appellees (Third-Party Defendants).
• Court: Wyoming Supreme Court

Page 93

684 P.2d 93

James E. ROTH, Westgate Investments, and Adams Sales, Inc., Appellants (Third- Party Plaintiffs), v. FIRST SECURITY BANK OF ROCK SPRINGS, WYOMING, a banking corporation, George Stahla and Keith West, Appellees (Third-Party Defendants).

No. 83-193.

Supreme Court of Wyoming.

July 18, 1984.

Warren R. Darrow of Riske & Edmonds, P.C., Cheyenne, for appellants.

Robert H. Johnson (argued), Rock Springs, for appellee First Sec. Bank and George Stahla.

Ford T. Bussart (argued) of Greenhalgh, Bussart, West & Rossetti, P.C., Rock Springs, for Keith West.

Before ROONEY, C.J., and THOMAS, ROSE, BROWN and CARDINE, JJ.

CARDINE, Justice.

Appellant, in a third-party action, sought to recover damages resulting from a claimed wrongful refusal by appellees to grant a construction loan. This appeal is from a summary judgment in favor of third-party defendants First Security Bank of Rock Springs, George Stahla, and Keith West. We will affirm.

In December of 1981 James Roth, Westgate Investments and Adams Sales, Inc. (referred to herein as Roth) began negotiations for a loan with First Security Bank of Rock Springs. From December of 1981 until July of 1982, Roth and George Stahla, the bank's loan officer, discussed the information, requirements, and documents necessary for a loan application by Roth.

On May 25, 1982, Roth hosted a dinner party for the purpose of providing information about the construction project to a representative of the Federal National Mortgage Association ^MA. FNMA represented a possible source of end financing for this project which First Security required for approval of the loan. Various business leaders throughout the community and the state were invited to this dinner. Appellee Keith West was invited because of his position as mayor of Rock Springs. He was also a director of the First Security Bank of Rock Springs. During the course of the party, Mr. West made several favorable remarks concerning the status of the construction loan.

On July 9, 1982 the loan was formally denied. Roth was unable to meet his financial obligations and was sued by numerous contractors. In the suit by the contractors, Roth joined appellees and asserted a third-party complaint against them alleging wrongful denial of the loan. The action on the third-party complaint against appellees was severed from the main suit. Roth then filed an amended third-party complaint alleging also negligence and fraud. Appellees moved for summary judgment which was granted.

Appellant presents several questions for review:

"I. Whether there is a genuine issue of material fact as to appellants' reliance on the representations of appellee West.

"II. Whether there is a genuine issue of material fact as to whether or not appellants' reliance on the representations and assurances of appellees was reasonable.

"III. Whether there are genuine issues of material fact as to the alleged negligent conduct and the alleged negligent misrepresentations of appellees.

"IV. Whether there are genuine issues of material fact as to appellants' allegations of fraud and deceit.

"V. Whether there are genuine issues of material [fact] as to appellee West's authority to bind appellee First Security in loan transactions."

Our standard on review of summary judgment is that:

"When a motion for summary judgment is before the supreme court, we have exactly the same duty as the district judge; and, if there is a complete record before us, we have exactly the same material as did he. We must follow the same standards. The propriety of granting a motion for summary judgment depends upon the correctness of a court's dual findings that there is no genuine issue as to any material fact and that the prevailing party is entitled to judgment as a matter of law. This court looks at the record from the viewpoint most favorable to the party opposing the motion, giving to him all favorable inferences to be drawn from the facts contained in affidavits, depositions and other proper material appearing in the record." Reno Livestock Corporation v. Sun Oil Company (Delaware), Wyo., 638 P.2d 147, 150 (1981). See also, Blackmore v. Davis Oil Company, Wyo., 671 P.2d 334, 336 (1983).

A summary judgment should only be granted where it is clear that there are no issues of material facts involved and that an inquiry into the facts is unnecessary to clarify the application of law. Johnson v. Soulis, Wyo., 542 P.2d 867 (1975). A material fact is one which has legal significance. Johnson v. Soulis, supra. It is a fact which would establish a defense. Wood v. Trenchard, Wyo., 550 P.2d 490 (1976). After the movant establishes a prima facie case the burden of proof shifts to the opposing party who must show a genuine issue of material fact, Gennings v. First Nat'l Bank of Thermopolis, Wyo., 654 P.2d 154 (1982), or come forward with competent evidence of specific facts countering the facts presented by the movant. Matter of Estate of Brosius, Wyo., 683 P.2d 663 (1984). The burden is then on the nonmoving party to show specific facts as opposed to general allegations. 10 Wright & Miller, Federal Practice and Procedure: Civil § 2727, p. 538. The material presented must be admissible evidence at trial. Conclusory statements are not admissible. Bancroft v. Jagusch, Wyo., 611 P.2d 819 (1980). We give the party defending the motion the benefit of any reasonable doubt. If the evidence is subject to conflicting interpretations or if reasonable minds might differ, summary judgment is improper. Weaver v. Blue Cross-Blue Shield of Wyoming, Wyo., 609 P.2d 984 (1980).

Viewing the facts in a light most favorable to appellant Roth, we find that he entered into extensive negotiations with the bank for a loan in order to construct and develop a subdivision. During this time, Roth had numerous conversations with George Stahla, the bank's loan officer. He also spoke with other bank officials and with Keith West, a director of the bank. On May 25, 1982, Roth hosted a dinner party to which West had been invited. This party was given for the purpose of impressing an official from FNMA that the construction project was a good project to finance. At the cocktail party one of the guests asked Keith West about the status of the loan with First Security Bank. Mr. West answered, "Things look very good at this time." He was asked at dinner when Roth could start writing checks on the loan and responded, "We'll be ready before they will" (referring to FNMA). At the same dinner party, Roth approached Mr. West and asked him what the status of the loan was because, "[I]f I didn't have that loan I was in real trouble." Mr. West replied, "You don't have any * * * problems as long as I own the bank." Roth testified that he did not verify this statement with the loan officer at the bank, but

" * * * I immediately turned to Margaret Russell, who was five or six paces away and said, Margaret, order up the deed. How fast can you get it here?

She told me by the 10th of June and I told her get it on the way, stepped over to Mr. Dalyrmple and Mr. Patterson and told them, start turning the dirt.

"Q. That same night?

"A. Right then.

"Q. So, Dalyrmple and Mr. Patterson right after Keith West made that remark to you, you told them to start moving dirt?

"A. You bet.

"Q. You told Margaret Russell to start, to order up the deed?

"A. Right.

"Q. All this was on the strength of that remark?

"A. No, not at all. It was on the strength of past dealings, local banking community on the past dealings and inferences by Mr. Stahla that they could and would make the loan attending the FNMA approval, and that fact that Mr. West had told me that the procedure was that they, that the bank president basically checked with the loan officer involved and himself, and I had assurances from both ends of the banking organization as I knew it to be. It seemed to be--I had met all the guidelines and it had been my past experience that when the banking community told you something that's the way it was, and we went from there. So I can't say it was purely that at all."

Roth contends that the trial court erred in not finding a genuine issue of material fact regarding Roth's reliance on the bank's commitment to make the loan and in deciding that his reliance was unreasonable. Roth states that the course of negotiations, culminating with West's remark at the dinner party, induced him to incur substantial expenses and that appellee West and the bank should now be estopped from asserting the nonexistence of the construction loan.

Equitable estoppel precludes a party who knows the truth from denying the assertion of any material fact with which he induced another to change his position where such other person is ignorant of the facts, had a right to rely upon the assertions, and suffers an injury. 28...