Case Study Analysis: Tortious Interference

Introduction

Tortious interference with a contract happens when a person who is not a party to a contract somehow influences one of the contract parties to breach the contract. This only applies where there is a written contract between two or more parties. Attorneys analyze these cases using the IRAC method. That is the method covered in Module 1.5. It is a method that looks at the case and pulls out the following information:

Issues

Rules

Application

Conclusion

Tortious Interference with a Contract

A tortious interference with a contract happens when a person who is not a party to a contract somehow influences one of the contract parties to breach the contract. This only applies where there is a written contract between two or more parties. Consider the following example of tortious interference with a contract:

Moonshine Coffeehouse Inc. and Aromatic Farms have a longstanding exclusive contract for the production and delivery of their "triple A" moonshine infused coffee beans.

Their contract calls for the delivery of all beans produced domestic and foreign on Aromatic Farm's to Moonshines distribution warehouses for processing and redelivery to Moonshines Coffeehouses. The parties agree that the price per pallet will be $3000 with guarantee of 4000 pallet minimum.

MJGreen House, Inc. a competitor of Aromatic approaches Moonshine and informs them that Aromatic is undercutting Moonshine by withholding 10% of their worldwide farm production for sale to its competitor coffeehouse Star Tracks Inc. for $2000 per pallet.

Moonshine Coffeehouse Inc. as a result of this information cancels the contract with Aromatic refusing to purchase any further pallets from Aromatic unless Aromatic provides the entire farm yield as agreed.

Would Aromatic have standing to sue MJGreen House, Inc. for tortious interference with contract because MJGreen's actions made Moonshine decide to breach the contract?

What would Aromatic have to prove to be able to hold MJGreen liable for tortious interference with the contract?