Davis v. First Interstate Bank Of Idaho, N.A.

765 P.2d 680 (1988)

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Nature of the Case

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Facts

Ps own separate sheep ranches, but the sheep run together. In 1982 Ps began financing their operations through D. The bank made Ps an operating loan commencing in 1982. Plaintiffs were unable to pay the full amount at the end of the 1982 budget year. In 1983 D continued to finance Ps. The parties negotiated for financing in 1984 but were unable to reach an agreement. D concedes that it had a contractual duty to lend Ps money for the sheep ranching operation for the year commencing in December of 1983 and that it breached this duty when it failed to do so. Ps sued D for: (1) breach of contract, resulting in starved, malnourished sheep; (2) gross negligence, with a prayer for punitive damages, for failure to notify plaintiffs that their operation would not be financed; (3) damages for loss of credit standing; (4) damages for extreme humiliation, anguish, mental and physical distress and suffering resulting from intentional harassment. D claims that Ps failed to mitigate their damages by seeking alternative financing. The court granted D's motion for summary judgment on the basis that Ps failed to mitigate their damages. The trial court found that Ps did not take any action to obtain an alternate source of financing. Ps appealed.