Davis v. First Interstate Bank of Idaho
Idaho Supreme Court
765 P.2d 680 (1988)

- Written by Rich Walter, JD
Facts
G. Emery Davis, Sam Davis, and their families (plaintiffs) financed the operation of their sheep ranches with loans from the First Interstate Bank of Idaho, N.A. (bank) (defendant). The bank committed to renewing the loans for the next year and assured the Davises that it would not let their sheep starve, but negotiations as to the terms of the renewal encountered difficulties and eventually broke down. The bank did not renew the loan. Sam Davis’s efforts to secure alternative financing from two other institutions were unsuccessful. The ranches lacked the funds to carry on properly, and the sheep starved. The Davises sued the bank for breach of contract, gross negligence, and infliction of mental and physical distress. The bank admitted breaching its commitment but contended that the Davises could have mitigated their losses. The trial court granted summary judgment for the bank, and the Davises appealed to the Idaho Supreme Court.
Rule of Law
Issue
Holding and Reasoning (Bistline, J.)
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