Saturday, February 14, 2009

Hindering Another's Contractual Performance

In a recent action for tortious interference, a plaintiff brought suit in the Western District of Oklahoma in which it was alleged that the plaintiff's performance of its contract with various third parties was rendered more costly or burdensome by the actions of the defendant. On February 10, 2009, in Wilspec Technologies, Inc. v. Dunan Holding Group, Co. LTD, 2009 OK 12, __ P.3d__, the Oklahoma Supreme Court (in answer to certified questions from the Federal Court) held that: "[t]oday we recognize a plaintiff's right to maintain a cause of action against an interferor when wrongful acts are aimed at hindering or otherwise rendering plaintiff's performance more costly or burdensome in a contract between plaintiff and a third party."

The Plaintiff had entered into a three-year contract with defendant's predecessor in interest for the manufacture of various heating ventilating and air conditioning parts for sale by plaintiff throughout North America. In turn, the plaintiff had entered into multiple-year contracts to supply those parts to its customers. The Plaintiff alleged that defendant intentionally interfered with plaintiff's contractual or business relations with its customers, in part, by directly soliciting the sale of products to plaintiff's existing and prospective customers in North America and unilaterally changing the contract price and payment terms it charged plaintiff. The plaintiff specifically alleged that it had contracts with numerous customers to supply them with components defendant agreed to manufacture; defendant knew plaintiff had contracted with such customers; defendant knew plaintiff's customers depended on plaintiff to supply them with such components and that a failure on defendant's part to manufacture the components in conformity with the 2002 Agreement would disrupt and possibly destroy plaintiff's customer relations and result in significant economic harm to plaintiff.

The Court explained the basis for its decision as follows: "[w]e believe that where the law provides a remedy against a tortfeasor who induces or causes a third party not to perform the contract, the protection against such tortious acts extends to a party who is unable to perform his/her contract or where such performance becomes more costly or unduly burdensome. To hold otherwise would unjustly enrich a tortfeasor and leave a plaintiff less than whole."