Wyoming: Tender Excused and Tortious Interference Found Where an Expired Right of First Purchase Is Used to Obstruct Closing; Attorney-Fee Punitive Damages Upheld Without a 1:1 Ratio

Introduction

In Ernest Anderson and Martha Anderson v. Noah Messinger; Brandy Chaplin; and Wyoming Fall Creek, LLC, 2026 WY 42 (Apr. 15, 2026), the Wyoming Supreme Court affirmed (1) a decree of specific performance compelling sellers Ernest and Martha Anderson to convey their home to buyers Noah Messinger and Brandy Chaplin, and (2) a judgment holding neighbor Wyoming Fall Creek, LLC (WFC) liable for tortious interference with that contract. The dispute arose from recorded 1976 covenants burdening two adjacent lots and granting each owner a “first right of purchase” over the other property, with “terms of acceptance” to be agreed within 60 days after the property is offered for sale.

The Andersons signed a purchase agreement with Messinger/Chaplin, while WFC (owner of the neighboring lot) intermittently asserted it would exercise its purchase right but never reached an agreement with the Andersons. Closing did not occur on the extended date, the Andersons later attempted to terminate, and litigation ensued among all three parties. Key issues included: (i) whether Messinger’s failure to “tender payment” on the scheduled closing date barred specific performance; (ii) whether WFC’s conduct constituted “intentional and improper” interference; and (iii) whether a punitive damages award consisting of attorney fees violated due process.

Summary of the Opinion

  • Specific performance affirmed: The Court held the district court did not clearly err in finding the Andersons were unwilling/unable to close because they feared being sued by WFC; therefore, Messinger was excused from tendering payment on the closing date, and the Andersons breached by later unilaterally terminating the agreement.
  • Tortious interference affirmed: The Court held the district court did not clearly err in finding WFC intentionally and improperly interfered with Messinger’s contract—principally by leveraging uncertainty and refusing to clear the claimed right after it had expired, to pressure covenant amendments “at no cost to itself.”
  • Punitive damages (attorney fees) upheld: The Court held the attorney-fee punitive award against WFC was not unconstitutionally excessive, rejecting a claimed 1:1 punitive-to-compensatory requirement and emphasizing the district court’s application of Wyoming’s punitive-damages factors.

Analysis

Precedents Cited

1) Standards of review after a bench trial

The Court anchored its appellate posture in Leeks Canyon Ranch, LLC v. Jackson Hole Hereford Ranch, LLC, 2025 WY 63, ¶ 31, 569 P.3d 1120, 1130 (Wyo. 2025) (quoting Boot Ranch, LLC v. Wagonhound Land & Livestock Co., LLC, 2024 WY 136, ¶ 23, 560 P.3d 887, 893 (Wyo. 2024)). This framing mattered because nearly every contested point (readiness to close, consent, causation, good faith, reprehensibility) depended on factual findings reviewed only for clear error. That deference drove the affirmance across issues.

2) Specific performance and breach

The Court reiterated that specific performance is equitable and discretionary (Ruppert v. Merrill, 2024 WY 113, ¶¶ 11-12, 558 P.3d 529, 534 (Wyo. 2024)), but only available upon breach, quoting Davis v. Harmony Dev., LLC, 2020 WY 39, ¶ 34, 460 P.3d 230, 241 (Wyo. 2020). The novelty here is not that principle, but its application: the Court affirmed that a buyer’s failure to tender at closing does not constitute default where the seller’s own inability/unwillingness makes tender an “idle, vain, or useless act,” a concept drawn from 15 Williston on Contracts § 47:4 (4th ed. May 2025 update).

For “time is of the essence” contracts, the Court cited Quinlan v. St. John, 201 P. 149, 150 (Wyo. 1921), and Morningstar v. Robison, 2023 WY 28, ¶ 25, 527 P.3d 241, 249 (Wyo. 2023), recognizing the usual rule that buyers must be ready, willing, and able on the closing date. The Court then emphasized the exception: tender is excused when the seller will not or cannot perform.

3) Tortious interference: elements, “improper” interference, and good-faith privilege

The governing elements came from Sweetwater Station, LLC v. Pedri, 2022 WY 163, ¶ 31, 522 P.3d 617, 626-27 (Wyo. 2022) (quoting Downs v. Homax Oil Sales, Inc., 2018 WY 71, ¶ 21, 421 P.3d 518, 524 (Wyo. 2018)). WFC contested only element (3): “intentional and improper” interference causing breach/termination.

WFC argued “improper” was a legal question, but the Court invoked Scheaffer v. State ex rel. Univ. of Wyo. ex rel. Bd. of Trs., 2009 WY 19, ¶ 51, 202 P.3d 1030, 1044 (Wyo. 2009) (impropriety is fact), the Restatement’s causation-as-fact view (Restatement (Second) of Torts § 766 cmt. o (1979)), and Carlson v. Carlson, 775 P.2d 478, 484 (Wyo. 1989) (good-faith economic-interest privilege is fact). This was outcome-determinative: it kept the dispute within clear-error review.

For the “economic interest” justification, the Court relied on Sweetwater Station, LLC, 2022 WY 163, ¶ 34, 522 P.3d at 627 (quoting Sunshine Custom Paints & Body, Inc. v. South Douglas Highway Water & Sewer Dist., 2007 WY 206, ¶ 23, 173 P.3d 398, 404 (Wyo. 2007)). The Court accepted the doctrine but held the district court reasonably found WFC lacked good faith.

4) Preservation and constitutional review of punitive damages

Although WFC had not raised the constitutional-excessiveness argument below, the Court reached it as “fundamental,” citing Jones v. Young, 2025 WY 130, ¶ 29, 580 P.3d 1026, 1035 (Wyo. 2025) (with reference to Sharpe v. Evans, 2025 WY 70, ¶ 14, 570 P.3d 731, 736 (Wyo. 2025)).

5) Punitive damages standards and guideposts

Wyoming punitive damages principles came from Prancing Antelope I, LLC v. Saratoga Inn Overlook Homeowners Ass'n, Inc., 2021 WY 3, ¶¶ 65-66, 478 P.3d 1171, 1187 (Wyo. 2021), including that attorney fees may be awarded as punitive damages, and that punitive damages require “willful or wanton misconduct,” citing Rosty v. Skaj, 2012 WY 28, ¶ 34, 272 P.3d 947, 958 (Wyo. 2012).

For federal due process constraints, the Court applied State Farm Mut. Auto. Ins. Co. v. Campbell, 538 U.S. 408, 416-18, 425 (2003), and adopted de novo review of constitutionality as in Lompe v. Sunridge Partners, LLC, 818 F.3d 1041, 1061, 1063 (10th Cir. 2016). For state-law calibration, it relied on Farmers Ins. Exch. v. Shirley, 958 P.2d 1040, 1044 (Wyo. 1998), and it referenced Aetna Life Ins. Co. v. Lavoie, 505 So.2d 1050, 1062 (Ala.1987) for proportionality language (via Shirley).

Legal Reasoning

A. Specific performance: tender excused where seller is not prepared to close

The Andersons’ appellate theory was formalistic: because “time is of the essence” and Messinger did not tender payment on November 6, 2017, Messinger defaulted. The Court accepted the general “tender/ready-willing-able” rule but held it is conditional: the buyer need not tender if the seller’s conduct makes tender futile. The district court found (and the Supreme Court agreed the record supported) that the Andersons would not risk closing absent resolution of WFC’s claimed rights, and that the parties treated the contract as continuing after the failed closing. On those facts, the Andersons could not treat the missed closing as buyer default.

The breach, then, was the Andersons’ unilateral April 2019 termination based on an “incorrect assumption” that Messinger was responsible for the failure to close. Once the Court affirmed the underlying factual finding (seller unwilling/unable), the legal conclusion followed: termination was unjustified, and specific performance was within the district court’s equitable discretion.

B. Tortious interference: leveraging an expired purchase right to obstruct the sale

The Court focused on the “intentional and improper” element and upheld three core factual determinations:

  1. No consent: WFC’s consent argument hinged on a November 17, 2017 email from Messinger’s attorney. The Court upheld the district court’s reading: the email refused to exit or assign and merely contemplated termination “if and when the Anderson/Boerschig deal closes”—not a blanket permission to negotiate or interfere after the purchase-right period.
  2. Causation and impropriety beyond “refusing to waive”: WFC tried to blame Wyoming Title and Escrow’s later requirement for a recorded waiver. The Court accepted the district court’s chain-of-events finding: WFC’s “bad faith” assertion of exercising the right, followed by inactivity and non-responsiveness, created the uncertainty that prompted the waiver requirement and chilled the sellers from closing. Importantly, the Court did not announce that a refusal to sign a waiver is inherently tortious; it affirmed that the impropriety lay in the strategic use of the claimed right (after its exercise window had expired, as the court found) to obstruct the sale as leverage for unrelated covenant amendments.
  3. No good-faith economic-interest privilege: Even though WFC claimed the covenants reduced its property’s value, the district court found its true objective was to obtain a “windfall” covenant amendment “at no cost to itself,” and that it continued to claim purchase rights despite knowing the sellers believed the right had expired. Because good faith is factual under Wyoming law, that finding defeated WFC’s justification defense.

C. Punitive damages: attorney-fee awards and constitutional proportionality

The punitive award against WFC consisted of attorney fees and costs (some joint and several with the Andersons, some solely against WFC) imposed as punishment/deterrence for “willful and wanton” conduct. On due process, WFC urged a de facto 1:1 punitive-to-compensatory limit. The Court rejected that as inconsistent with State Farm Mut. Auto. Ins. Co. v. Campbell (no bright-line rule; “single-digit” ratios often acceptable) and distinguished Lompe v. Sunridge Partners, LLC (observations about 1:1 often arise where compensatory damages exceed $1 million).

The Court emphasized the district court’s application of Farmers Ins. Exch. v. Shirley factors—particularly the linkage between WFC’s misconduct as the “genesis” of the litigation and the litigation costs incurred. On that reasoning, the attorney-fee punitive award bore a “reasonable relationship” to the harm and the policy goal of deterring similar obstructionist behavior in property transactions.

Impact

  • Real estate closings with “time is of the essence” clauses: The decision reinforces that a buyer’s tender obligation is not absolute; it is excused when the seller is unwilling or unable to perform such that tender would be futile. Practically, parties should document readiness and the other side’s inability/unwillingness, because the question will be treated as fact-intensive and credibility-driven.
  • Neighbor rights (rights of first refusal/purchase) as leverage: The opinion signals heightened tort exposure where a neighbor (or other third party) strategically invokes (or continues to assert) a purchase right to obstruct a pending contract in order to extract collateral concessions (here, broad covenant amendments). Even where a party claims an economic stake, the “good faith” requirement is a meaningful constraint.
  • Punitive damages through attorney fees: The decision confirms that Wyoming courts may use attorney fees as punitive damages and that constitutional review will focus on guideposts/factors rather than a mechanical ratio—especially when litigation costs are a foreseeable consequence of the wrongful conduct.
  • Appellate posture: By characterizing “improper interference” and good faith as questions of fact (with clear-error deference), the Court makes trial-level fact development and credibility assessments decisive in similar disputes.

Complex Concepts Simplified

Specific performance
A court order requiring a party to do what it promised (here, convey real property), typically used because land is considered unique and money damages may be inadequate.
“Time is of the essence”
A contract term making the deadline material; missing it can be a breach. This case clarifies that the deadline does not force a buyer to tender payment when the seller is not actually prepared to close—tender can be excused when it would be pointless.
Tender of performance
The buyer’s act of presenting payment (or being demonstrably ready, willing, and able to pay) at closing. Tender is generally required, but not when the other party’s conduct makes performance impossible or clearly refused (a “vain or useless act”).
Tortious interference with a contract
A claim against a non-party who intentionally and improperly causes a contract to be breached or terminated, resulting in damages. The “improper” part depends heavily on motive, means, and good faith, and is treated as fact-specific.
Good-faith economic-interest privilege
A defense allowing interference if the actor, in good faith, asserts a legally protected interest that would be impaired by the contract’s performance. The privilege fails if the factfinder determines the actor is not acting in good faith or is using the claim as leverage for unrelated gain.
Punitive damages and due process
Punitive damages punish and deter. The U.S. Constitution prohibits “grossly excessive” punitive awards. Courts evaluate reprehensibility, proportionality to harm, and comparisons to similar sanctions, rather than applying an automatic 1:1 ratio.

Conclusion

2026 WY 42 is a fact-driven but consequential Wyoming decision at the intersection of real estate contracting, neighbor purchase rights, and punitive remedies. It confirms that a buyer’s tender obligation at a “time is of the essence” closing is excused when the seller is not prepared to perform; it affirms tort liability where a third party uses a claimed (and, as found, expired) right of first purchase to obstruct a sale to extract collateral concessions; and it upholds attorney-fee punitive damages under constitutional scrutiny without imposing a rigid 1:1 punitive-compensatory ratio. The opinion’s broader significance lies in its emphasis on good faith and on trial-court factfinding as the fulcrum for both contract and tort outcomes in contested closings.