A manager of a hotel, ordered $1,000 worth of sheets from a linen company for his hotel. Following the conversation, the manager of the hotel wrote a memo to the file documenting the agreement, initialed it, and sent a copy to the sales representative of the linen company.

One of the linen company's competitors learned of this contract and contacted the hotel to tell them the sheets were poorly manufactured and they should stop buying from the linen company and buy everything from them. The hotel cancelled the contract and started buying from the competitor. The linen company's sheet are not poorly manufactured.

Is there a tort the the linen company can sue for and who would be the defendant? Who should be sued for breach of contract claim? What damages would be recoverable from each defendant so that it would not be recovering the same damages twice? How would this affect the statute of fraud?