Interference with Contractual Relations & Other Limited Duties Flashcards
Interference with Existing Contract
Interference with Prospective Advantage or Economic Relations
Two causes of action
Interference with Contractual Relations
Encompasses conduct by a TP which either
Induces a party to the existing contract to break it; or
Results in a substantial interference with the performance or reduction of value of the contract
Interference with Existing Contract
Encompasses conduct which results either in
interference with business relationship between P and another person or entity; or
Interferes with a reasonable expectation of such a relationship coming into existence
Interference with Prospective Advantage or Economic Relations
P was engaged in an on-going relationship with another person or entity, or there was a reasonable expectancy of such a relationship coming into existence
D had knowledge of such present or future relationship
Most courts require that conduct be wrongful (see above) by some measure other than an interference with P’s interest itself
P must show but for interference a contract would have been entered into – not just that it was reasonably certain it would have been entered into
Interference with Prospective Advantage
Elements
Existence of a valid, binding contract
Cannot be a contract void as against public policy
Generally does not apply to a contract terminable at will
TP must know or should have known of contract
Contract was breached
D’s conduct was intentional and engaged in with the purpose of inducing breach
Courts are divided on whether P also must show that conduct was malicious (ill-will) or, at least wrongful (criminal or an independent tort; use of physical violence or by some other measure which is not proper competitive conduct as defined by industry or e.g., baseless litigation)
Interference with Existing Contract
Elements
Common Law: No liability on part of dispenser or provider of alcohol despite foreseeability of harm.
Modern Law: Liability largely jurisdictional and largely statutory
Alcohol Related Injuries
Generally liable for sales to minors/visibly intoxicated persons either under common law and/or so-called Dram Shop Acts
Generally recipient cannot recover for damages incurred as a result of unlawful sales made to him/her; at a minimum comparative negligence will apply
Seller still may defend on the basis that it was not the proximate cause of harm or lack of foreseeability under the totality of the circumstances.
Alcohol Related Injuries
Sellers
May be liable where serve adult social guest, knowing both that the guest is intoxicated and will thereafter be operating a motor vehicle and guest’s negligence was caused by intoxication.
May be liable where negligently furnish alcoholic beverages to minors
Applies to anyone who aids, abets, agrees or attempts to aid minor in consuming liquor in a substantial fashion
But, May not apply to those who also are minors
But, may not apply where merely sharing the check
May still defeat claim on issue of proximate cause
Alcohol Related Injuries
Social Hosts:
Mere ownership of premises where unidentified minors consumed alcohol insufficient basis for liability unless owner knew guest was intoxicated and unable to safely drive
Alcohol Related Injuries
Possessors of Property and Invitees
Generally may recover costs of negligent sterilization and emotional distress arising from that negligence but not costs of rearing child or any emotional damages arising from rearing the child – too speculative whether costs outweigh benefits
Wrongful pregnancy (c/a for parents).
May be permitted to recover damages for the cost of rearing a child born with severe defects where physician failed to inform parent, in a timely, fashion of an increased possibility that such a child would be borne.
Damages for emotional distress, however, are not recoverable
Wrongful Birth (c/a for parents):
Generally child is not permitted to recover for the burdens of afflictions.
Wrongful Life (c/a for child):
