Freeman & Mills, Inc. v. Belcher Oil Co.

Opinion

LUCAS, C. J.

We granted review in this case to resolve some of the widespread confusion that has arisen regarding the application of our opinion in Seaman’s Direct Buying Service, Inc. v. Standard Oil Co. (1984) 36 Cal.3d 752 [206 Cal.Rptr. 354, 686 P.2d 1158] (Seaman’s). We held in that case that a tort cause of action might lie “when, in addition to breaching the contract, [defendant] seeks to shield itself from liability by denying, in bad faith and without probable cause, that the contract exists.” (Id. at p. 769.)

*88In the present case, the Court of Appeal reversed judgment for…