On July 5, 1983, Ps signed a letter of agreement with John Piazza, president of D, regarding a United States Forest Service request for proposals for office facilities. They formed a joint venture wherein D would supply all necessary drawings, building specifications, and necessary cost items to prepare a proposal for said Office Building. Ps were to make available land for the proposal. The letter of agreement outlined two proposals that the parties intended to submit. Additionally, the letter stated that 'all parties agree to work for the acceptance of one of these proposals and the final offering shall be agreed to by all parties before final submission.' The specifications provided by the Forest Service in its original solicitation for offers indicated that proposals should include at least 15,500 square feet of net usable office space. D's first two proposals both contained plans that provided 15,645 square feet of net usable office space. Its final proposal, however, included only 15,000 square feet of net usable office space. D reduced the amount of net usable office space in its final proposal based upon a diagram of a suggested floor plan provided by the Forest Service. D's bid was rejected as nonresponsive because its proposal did not meet the minimum square footage requirement. Ps filed a complaint against D for negligence in the preparation of its bid, and that it was liable to them for the lost profits that they had expected. D filed a motion for summary judgment, arguing that a joint venture partner may not maintain an action for negligence against another joint venture partner when the alleged negligence (1) was committed within the scope of the joint venture business, (2) was not the result of bad faith, and (3) did not result in physical injury to person or property. D's motion was granted. Ps appealed.

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