Was there  an existing contract or reasonable expectations of economic benefit or advantage between Aromatic Farms and Moonshine Coffeehouse Inc.?

Overview 

Tortious Interference

Tortious Interference is an Act of Intentionally Interfering with someone’s business. Intentional Interference may directly interfere with a business deal, interfere with day-to-day operations, or spread false claims about the business. Tortious Interference with a contract happens when a person not a party to an original Contract somehow influences one of the contracting parties to breach their contractual duty. This situation is only applicable where there is a written contract between two or more parties. Tortious Interference exists where there is an Intrusion into the contractual relationship between two other parties that is so egregious as to allow the harmed party to file a Civil Lawsuit under a “Tort” claim. Tortious Interference is a Civil matter handled by the Civil Courts.

Tortious Interference is all about intent. If a person appears to interfere but does not intend to cause harm, there are no grounds to sue for Tortious Interference. However, if a person intentionally interferes with a third-party business operation, the interferer is guilty of Tortious Interference.  The cases below are critical to your understanding of analyzing Tortious Interference Issues and will assist in your completion of the IRAC Assignment.

Study the following Supplemental Tortious Interference Cases within the attachments

1. Florian Greenhouse Inc (PDF) Download Florian Greenhouse Inc (PDF)
2. Intentional Interference with Contractual Relations (PDF) 

Assignment Requirements 

Tortious Interference with a Contract

Tortious Interference with a contract happens when a third party influences one of the parties to a contract to breach the contract. Tortious Interference only applies when a written contract between two or more parties is interfered with by a non-party to the contract.

Please follow these steps to complete this Assignment:

1. Please use the case study to fill out the IRAC Response Form (DOCX) Which is listed in the attachments.
2. Read the case carefully.
3. Answer the questions listed after the case.
4. Use the IRAC analysis form as your guide in analyzing the case.
5. Upload your case answers using the IRAC Analysis format.

The Case Study

Scenario

Moonshine Coffeehouse Inc. and Aromatic Farms have a longstanding exclusive contract to produce and deliver their “Triple-A” moonshine-infused coffee beans.

The Moonshine Coffeehouse Inc. and Aromatic Farms contract require delivery of all beans foreign and domestic produced on Aromatic Farms to Moonshines distribution warehouses for processing and redelivery to Moonshines Coffeehouses. The parties agree that the price per pallet will be $3000 with a guarantee of 4,000 pallets minimum. MJGreen House, Inc., a competitor of Aromatic, approaches Moonshine and informs Moonshine that Aromatic is undercutting Moonshine by withholding 10% of Aromatic’s worldwide coffee bean production for sale to Moonshines’ competitor coffeehouse Star Tracks Inc. for $2000 per pallet.

As a result of this information, Moonshine Coffeehouse Inc. cancels the Aromatic contract refusing to purchase any additional pallets from Aromatic. Moonshine Coffeehouse Inc. enters into a new agreement with MJGreen House, Inc., agreeing to purchase the exact quantities of beans from MJGreen House, Inc.

1. What are the Issues in this case?
2. What is the applicable Rule of law under these facts?
3. Would Aromatic have the Standing to sue MJGreen House, Inc. for Tortious Interference with the contract because MJGreen’s actions persuaded Moonshine to breach the Aromatic contract?
4. Would it make a difference if the information were true?
5. What if the statement by MJGreen House, Inc., were false?
6. What would Aromatic have to prove to be able to establish a prima facie case for Tortious      Interference and hold MJGreen liable for Tortious Interference with the contract?
7. Was there  an existing contract or reasonable expectations of economic benefit or advantage between Aromatic Farms and Moonshine Coffeehouse Inc.?
8. What would Defendant MJGreen House, Inc., have to know to breach the contract under Tortious Interference?
9. What loss can Aromatic Farms claim?
10. What facts support MJGreen House, Inc., knew about the Aromatic Farms contract with Moonshine Coffeehouse Inc.?

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