Freeman & Mills, Inc. v. Belcher Oil Co.
900 P.2d 669 | California Supreme Court | 1995
What This Case Means for Subcontractors
The California Supreme Court overruled a prior decision (Seaman's) that allowed contractors to sue for tort damages when another party denied a contract existed. The court found that tort recovery is not available in ordinary commercial contracts, even if the denial was made in bad faith. This means subcontractors cannot pursue tort claims solely based on a contractor's bad faith refusal to acknowledge a contract—they must rely on contract law remedies instead.
Key Takeaways
- •You cannot sue for tort damages if someone denies your contract exists. Stick to contract breach claims instead.
- •Bad faith denial of a contract is not enough to win a tort case in California. You need actual contract law violations.
- •Document all contract communications clearly. Without proof of an agreed contract, you have no claim at all.
A tort cause of action based on bad faith denial of contract existence should be overruled.
Frequently Asked Question
Can I sue for damages if a contractor denies our subcontract agreement exists?
No, not under tort law. California courts ruled you cannot recover tort damages based on bad faith denial of a contract's existence. You must pursue contract breach claims instead, which have different remedies and requirements. Always get written proof of your agreement to protect yourself.
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