Interference With Advantageous Relationships

Question 1

Types - Business

Answer 1

Injurious falsehood, interference with existing contractual relations and interference with prospective contractual relations

Question 2

Injurious falsehood - definition

Answer 2

false and malicious statements with respect to plaintiff’s property which result in a financial loss

Question 3

Injurious falsehood - elements

Answer 3

(1) False statement of fact by defendant – opinions and puffing are not actionable. The statement need not be defamatory to be actionable.
(2) Publication to one or more persons – 3rd party must hear and understand the statement.
(3) Statement disparages plaintiff’s business, property or financial interest (slander of title (Horning v. Hardy), trade libel re plaintiff’s goods (Testing Systems v. Magnaflux) or business in general).
(4) Malice – knew the statement was false or made the statement with reckless disregard for the truth.
(5) Damages – must be a pecuniary loss. Emotional distress is insufficient.
(6) Defenses:
(a) Truth or consent.
(b) Absolute privilege in judicial or legislative situations.
(c) Qualified privilege allows competitors to say their product is better but you cannot make false factual statements about another’s product.

Question 4

Interference with existing contractual relations - definition

Answer 4

Invasion of a contractual right to gain profit or to prevent another from enjoying the benefit of a contract

Question 5

Interference with existing contractual relations - definition

Answer 5

Invasion of a contractual right to gain profit or to prevent another from enjoying the benefit of a contract

Question 6

Interference with existing contractual relations - elements

Answer 6

(1) Defendant interferes including inducing breach or making performance substantially more difficult. Defendant must play active role in causing the interference.
(2) Interference is with an existing contract even if the contract is unenforceable or terminable at will. But one cannot be held liable for interfering with an illegal contract.
(3) Intent which involves awareness of the existence of the contract and an intent to interfere.
(4) Damages – both special and general damages are recoverable. Punitives are also recoverable if defendant is found to have acted with malice, fraud or impression.
(5) Defenses include proper justification, social good, protection of own financial interests if you act with equitable methods. Violence, lies, bribery and extortion will defeat the privilege.

Question 7

Interference with prospective contractual relations - definition

Answer 7

Invasion of a prospective contractual right to gain profit or preventing another from enjoying the benefit of a prospective contract

Question 8

Interference with prospective contractual relations - elements

Answer 8

(1) Defendant interferes – see above.
(2) Interference is with a prospective contract (Harmon v. Harmon).
(3) Intent or negligence.
(4) Damages – see above.
(5) Defenses are broader than with existing contract which means that one can seek out customers before they go to others but the means of doing so must be reasonable.