¶ 1. Plaintiffs Sue Skaskiw and Vermont Volunteer Services for Animals Humane Society appeal the trial court’s decision to grant the motion to dismiss of defendants Vermont Agency of Agriculture, Department for Children and Families, Kristin Haas, Kathleen Smith, and Carol Maloney on Skaskiw’s claims of defamation, violation of due process, economic interference, and failure to discharge a mandatory duty. We affirm.
¶ 2. The Vermont Spay/Neuter Incentive Program (VSNIP) was created in 2006 to subsidize dog, cat, and wolf-hybrid sterilization procedures for low-income Vermonters. Sue Skaskiw and the organization she directs, Vermont Volunteer Services for Animals Humane Society (WSA), administered the VSNIP program from its inception in 2006 until the expiration of Skaskiw’s contract in October 2012. Defendant Vermont Agency of Agriculture initially managed the program but responsibility was transferred to defendant Department for Children and Families (DCF), a department within the Agency of Human Services, in 2011. Defendant Haas is an employee of the Agency of Agriculture; defendants Smith and Maloney are employees of DCF.
¶ 3. Sometime after the program’s inception, the Agency of Agriculture contracted with Skaskiw to run VSNIP. She still held the contract when responsibility shifted to DCF in 2011, but at that time DCF put the contract out for a competitive bid. Two bidders, Skaskiw and VT-CAN!, submitted proposals, and VT-CAN! won the contract. Skaskiw subsequently filed this lawsuit.
¶ 4. In her complaint, Skaskiw pleaded one count of defamation against Smith and DCF; one count of violation of due process against Smith; one count of tortious interference with a prospective economic advantage against all defendants based on conduct by Haas, Smith, and Maloney; and one count of failure to discharge a mandatory duty against DCF. The thrust of Skaskiw’s complaint is that Smith made libelous statements to coworkers about her ability to run the program and that these libelous statements prejudiced the bid selection committee against her; that Haas, Smith, and Maloney manipulated the bid selection process to disadvantage her; that DCF administered the bidding process in ways that disadvantaged her; that VT-CAN! had a “known conflict of interest” with DCF and was improperly using VSNIP to benefit its own veterinary practice; and that DCF continues to mismanage the VSNIP program to Skaskiw’s detriment.
¶ 5. In response to Skaskiw’s complaint, the defendants filed a motion to dismiss for failure to state a claim upon which relief can be granted under Vermont Rule of Civil Procedure 12(b)(6). The trial court granted defendants’ motion and dismissed Skaskiw’s claims. This appeal followed.
¶ 6. We review decisions on a motion to dismiss de novo under the same standard as the trial court and will uphold a motion to dismiss for failure to state a claim if “it is beyond doubt that there exist no facts or circumstances that would entitle
I. Defamation
¶ 7. We turn first to Skaskiw’s defamation claim against Smith. In Count I of her amended complaint, Skaskiw alleged that Smith made false statements about her to coworkers during the bid selection process and that DCF is vicariously liable for these defamatory statements. She alleged that the “statements are blatantly false, and defendants have failed to provide proof of the statements’ validity after repeated requests” and that Smith “made these statements during the course of her employment with defendant DCF and used her official DCF email account.” Defendants moved to dismiss this claim on the grounds that Smith’s statements were privileged, Smith is entitled to qualified immunity, and DCF is entitled to sovereign immunity. The trial court found that even if Smith’s statements were conditionally privileged, she may have abused that privilege by knowingly making false statements, but the court ultimately dismissed the claims against Smith and DCF on immunity grounds. 1
¶ 8. A successful defamation claim requires:
“(1) a false and defamatory statement concerning [the plaintiff]; (2) some negligence, or greater fault, in publishing the statement; (3) publication to at least one third person; (4) lack of privilege in the publication; (5) special damages, unless actionable per se; and (6) some actual harm [to the plaintiff] so as to warrant compensatory damages.”
Stone v. Town of Irasburg,
¶ 9. We frequently have adopted provisions of the Restatement (Second) of Torts with respect to defamation,
Sullivan v. Stear,
¶ 10. Such statements between co-employees are not actionable, however, if they are “published upon an occasion that makes [them] conditionally privileged” and “the privilege is not abused.”
Id.
§ 593. The privilege is abused when the defendant “knows the matter to be false” or “acts in reckless disregard as to its truth or falsity,”
id.
§ 600; communicates the matter for an improper purpose,
id.
§ 603;
¶ 11. One particular conditional privilege recognized by the Restatement is applicable here: a conditional privilege for an inferior state officer whose statements were made in performance of official duties.
2
Restatement (Second) of Torts § 598A. This
privilege extends to communications made between government officers and from an officer to individuals outside the government.
Id.
§ 598A cmt. d. Although we have not had the occasion to recognize this privilege in the past, other jurisdictions have done so. See D. Elder, Defamation: A Lawyer’s Guide § 2:28 (2003) (“The majority rule provides a qualified privilege to inferior state governmental officers or officials making defamatory statements necessary to the performance of official duties (footnotes omitted) (quotation omitted)).
3
Given our previous reliance on the Restatement in this area of law, we adopt this privilege. It is directly applicable because Skaskiw alleged Smith was an employee of DCF and made the statements in the course of her employment. As noted above, a conditional privilege is abused, and becomes ineffective, if the defendant acted with malice. A conditional privilege is overcome by a showing of one of two forms of malice: (1) “‘conduct manifesting personal ill will, reckless or wanton disregard of plaintiffs rights, or carried out under circumstances evidencing insult or oppression’ ” or (2) “ ‘knowledge of the statement’s falsity or with reckless disregard of its truth.’ ”
Crump,
¶ 12. Although we described absence of privilege as an element of the tort in
Stone,
it should, for pleading rules, be seen as an affirmative defense with the burden of proof on the defendant. See
Burbage v. Burbage,
¶ 13. Vermont’s rules of pleading closely mirror the federal standards and require “a short and plain statement of the claim showing that the pleader is entitled to relief,” V.R.C.P. 8(a); see F.R.C.P 8(a)(2) (same), and allow conditions of the mind, such as malice, to be “averred generally.” V.R.C.P. 9(b); see F.R.C.P. 9(b) (“alleged generally”). Although plaintiffs normally meet the pleading burden in a defamation case with general allegations of malice, see
Woodruff, v. Trepel,
¶ 14. We recognize that Skaskiw claims malice in her brief and even points to other counts in the complaint where she alleged that Smith acted intentionally, knowingly, and recklessly. We also recognize that the trial court found malice implicit in the complaint. As set out above, Skaskiw pleaded only that Smith’s statements were false and that Smith failed to provide proof of their validity after being requested to do so. We cannot infer from these allegations that Smith knew the statements were false or acted in reckless disregard of their truth, nor can we infer that Smith made these statements for any improper purpose. The allegation that “defendants have failed to provide proof of the statements’ validity after repeated requests” merely supports Skaskiw’s claim that the statements were false, but that is not sufficient to defeat the conditional privilege. We therefore find no error in the trial court’s dismissal of Skaskiw’s defamation claim.
¶ 15. Because we can affirm the trial court’s dismissal of Skaskiw’s defamation claim against Smith and DCF based on the deficient pleadings, we need not reach defendants’ immunity claims.
II. Due Process
¶ 16. We turn next to Skaskiw’s due process claim against Smith. In Count II of her complaint, Skaskiw alleged that Smith responded to her initial questions on the request for proposal (RFP) in an “ambiguous and incomplete manner” and failed to respond to follow-up questions; that Smith provided information to VT-CAN! that she did not provide to Skaskiw; and that Smith ensured that at least three members of the RFP selection committee viewed Skaskiw “in a negative and incompetent manner” and otherwise corrupted the committee process. In her brief, Skaskiw argues that her competitor, VT-CAN!, had a conflict of interest and should not have been allowed to bid. Skaskiw generally alleged that these actions denied
¶ 17. Again defendants sought to dismiss the claim, arguing that Skaskiw had no protected due process interest as a disappointed bidder. In response, Skaskiw claims that she has a protected liberty interest, as established by DCF’s bidding procedures, and that Smith’s actions deprived her of that interest. Defendants counter that Skaskiw has no protected interest because she has no legitimate claim of entitlement to the bid and no standing to assert such an interest. The trial court agreed with defendants and dismissed Skaskiw’s claim for failure to demonstrate a valid interest that would trigger due process protections; it did not reach the standing question. We agree with the trial court.
¶ 18. We begin our analysis by defining the nature of the interest at issue. To assert a valid due process claim, plaintiffs “must show that they were deprived of a liberty or property interest within the protection of the Fourteenth Amendment.”
Ahern v. Mackey,
¶ 19. In support of the alleged liberty interest, Skaskiw relies on
Washington v. Glucksberg,
¶20. Our holding that Skaskiw has, at most, a property interest does not end our inquiry. We have recognized a protected property interest in the right to government employment. See
Brennan v. Town of Colchester,
¶ 21. Skaskiw’s interest does not, however, rise to the level of government employment. Because a bidder has nothing more than a unilateral hope or expectation of securing a contract, a disappointed bidder typically has no legitimate claim of entitlement and thus no protected property interest. See, e.g.,
Laidlaw Transit, Inc. v. Anchorage Sch. Dist.,
¶ 22. Skaskiw recognizes these precedents but argues that the necessary property interest arises from laws that regulate the bidding process prohibiting discrimination, conflicts of interest, and the like. The requirements to which Skaskiw refers do not change the fundamental nature of her interest. Although all government agencies must comply with anti-discrimination and conflict-of-interest restrictions, DCF was under no obligation to award the VSNIP contract to any particular bidder irrespective of the price offer. Skaskiw had nothing more than a mere unilateral hope or expectation that she would win the contract. This expectation is insufficient to create the needed property interest. We therefore find no error in the trial court’s dismissal of Skaskiw’s due process claim.
III. Tortious Interference
¶23. We turn next to Skaskiw’s claim of tortious interference against Haas, Smith, and Maloney for their alleged interference with her economic relationship with DCF, as well as against DCF and the Agency of Agriculture based on vicarious liability. On this count, Skaskiw made many detailed allegations with the overarching claim that the intentional actions of Haas, Smith, and Maloney “in concert and individually, directly and proximately” disrupted Skaskiw’s economic relationship with DCF. Skaskiw alleged that each action was performed by the individual defendants in the course of their employment with either DCF or the Agency of Agriculture.
¶ 24. To bring a valid claim of tortious interference with a prospective economic advantage, a plaintiff must plead:
(1) the existence of a valid business relationship or expectancy; (2) knowledge by the interferer of the relationship or expectancy; (3) an intentional act of interference on the part of the interferer; (4) damage to the party whose relationship or expectancy was disrupted; and (5) proof that the interference caused the harm sustained.
J.A. Morrissey, Inc. v. Smejkal,
¶ 25. In
Stone,
we concluded that the selectboard members, who had interfered with the town treasurer’s performance of duties to the town, were not third parties for the purposes of tortious interference because the selectboard members were agents of the town acting within the scope of their employment.
¶26. Some courts, however, have carved out an exception for cases where the interference is “ ‘motived by actual malice, where
actual malice is defined as bad faith, personal ill will, spite, hostility, or a deliberate intent to harm the plaintiff.’ ” E.g.,
Preyer,
¶ 27. While the
Preyer
court does not state precisely how “malicious” actions differ from “improper” actions, it defines actual malice in traditional terms,
¶ 28. Skaskiw’s complaint alleged that the actions of Haas, Smith, and Maloney were intentional, knowing, and negligent. Certainly, one may conclude that these defendants acted improperly, which would be sufficient under a traditional tortious interference claim involving a distinct third person. But here we are dealing with an exception to the rule that a third party cannot interfere with itself, 6 which, if allowable at all, 7 requires a higher showing of malice. Skaskiw did not allege that defendants were acting with actual malice or that they were acting outside of the scope of their employment, that is, acting for their own benefit rather than the benefit of DCF. Skaskiw’s allegations suggest that defendants did not want her to continue with the VSNIP program, but she makes no allegation that defendants were motivated by personal spite or ill will. Again, in her brief, Skaskiw made allegations not in the complaint, but, as we concluded, with respect to the defamation claim, allegations in the brief cannot make up for their absence in the complaint. We therefore find no error in the trial court’s dismissal of Skaskiw’s claim of tortious interference. Because of our resolution of this claim, we do not reach defendants’ sovereign immunity defense with respect to DCF and the Agency of Agriculture.
IV. Failure to Discharge a Mandatory Duty
¶ 29. Finally, we address Skaskiw’s claim that DCF failed to discharge a mandatory duty. Skaskiw alleged that DCF failed to properly manage VSNIP funds, administer VSNIP, and conduct VSNIP in a manner that avoids the appearance of a conflict of interest. To remedy DCF’s alleged failure to discharge its mandatory duty, Skaskiw seeks to: (1) permanently enjoin DCF from awarding VSNIP contracts to VT-CAN! and any other organizations with known conflicts of interest and (2) remove VT-CAN! as the VSNIP grantee. Defendants argue, and the trial court agreed, that Skaskiw’s request to enjoin DCF from awarding contracts to organizations with known conflicts of interest is not ripe because DCF is currently administering the program directly and not through a contractor and that her request to remove VT-CAN! as grantee is moot because VT-CAN! no longer administers the program. We agree.
¶ 30. At the outset, we note the mismatch between the broad allegations of DCF’s mismanagement of VSNIP and the very limited remedies sought. The remedies focus solely on VT-CAN! and its alleged conflict of interest and address virtually none of the allegations of DCF’s mismanagement.
¶ 31. Skaskiw’s request to enjoin DCF from awarding future VSNIP contracts to VT-CAN! and any other organizations with known conflicts of interest is not ripe for review. Claims are ripe “when there is a sufficiently concrete case or controversy,” as opposed to one that is abstract or hypothetical.
State v. M.W.,
¶ 32. In
Robinson/Keir Partnership,
the plaintiff claimed that he faced double liability for loans from a corporation to the plaintiffs partnership: once in an arbitration award, which was at issue in the litigation, and again in a suit by the corporation. We concluded that the plaintiffs claim was not ripe for review because the corporation had not filed a lawsuit, and thus the plaintiffs concern about double recovery was premature.
Id.
at 57-58,
¶ 33. Skaskiw’s request to remove VT-CAN! as the VSNIP contractor is moot. A case becomes moot if “the issues presented are no longer live or the parties lack a legally cognizable interest in the outcome.”
In re Moriarty,
¶ 34. Our rationale in Houston is applicable here. Skaskiw’s response to defendants’ assertion of mootness is to restate the broad allegations of mismanagement for which she sought no remedy in her complaint. The only remedy sought was to terminate the VT-CAN! contract, but that contract has expired. Since VT-CAN! no longer is administering the program, its contract was discrete, and there is no indication that DCF could reinstate that contract, we cannot grant the relief Skaskiw seeks and the claim is moot.
¶ 35. Skaskiw argues that we have recognized a mootness exception for cases that are “‘capable of repetition, yet evading review,’ ”
In re S.H.,
¶ 36. Skaskiw also argues that a second mootness exception applies here: one for cases of “great public concern.” We have not recognized this exception 8 and, in any event, doubt that we would find it applicable in this situation. We therefore find no error in the trial court’s dismissal of Skaskiw’s claim of failure to discharge a mandatory duty.
Affirmed.
Notes
The trial court granted the motion to dismiss based on qualified immunity and not on the sufficiency of Skaskiw’s pleadings. We affirm, but on a different rationale.
Another conditional privilege is available for communications that protect the legitimate interests of the recipient or a third person, as long as the defendant reasonably believes that information “affects a sufficiently important interest of the recipient or a third person” and the defendant was either under a legal duty to communicate the information to the recipient or communicated the information in response to a request. Restatement (Second) of Torts § 595. This privilege extends to protecting “a lawful business, professional, property or other pecuniary interest.” Id. § 595 cmt. d. We do not need to determine whether this privilege applies.
The majority rule among states is that these lower-level state officials are entitled to a conditional privilege, and a minority of states extend to these officials the absolute privilege historically reserved for high-ranking officials. Elder, supra, § 2:14 (stating that absolute immunity traditionally is available only to high-ranking officials but that some jurisdictions broadly extend absolute privilege where historically only conditional privilege was due.) We need not consider where to draw the line in this case because the absence of malice is sufficient to affirm the motion to dismiss.
She did not allege the source of a remedy although she demanded both compensatory and punitive damages. We infer that her remedy would lie under the Civil Rights Act, 42 U.S.C. § 1983.
The record indicates that Skaskiw initially pursued an appeal based on a conflict of interest but then abandoned it.
Haas worked for the Agency of Agriculture and not DCF. Skaskiw does not suggest that this difference is alone sufficient to produce a different result. Because all of the events underlying Skaskiw’s complaint occurred during DCF’s administration of the program, it is fair to conclude that, with respect to the actions alleged, Haas was an agent of DCF.
We are not deciding that we would allow a tortious interference claim against an agent of a third party based on malice, but only that no malice is alleged here, so under any definition of the applicable elements, Skaskiw’s complaint is insufficient.
Skaskiw cited three decisions in support of her argument. None recognize the exception she seeks.
In re Assurecare of Vermont, Inc.,
