Lexington Homes, Inc. v. W. E. Tyson Builders, Inc.
Lexington Homes, Inc. v. W. E. Tyson Builders, Inc.
Opinion of the Court
The only question raised by this appeal is whether the evidence presented at trial was sufficient to support the claim of W. E. Tyson Builders, Inc. that Lexington Homes, Inc. and Oscar L. Norris tortiously interfered with its contract with First Atlantic Corporation and The Northwestern Bank. We are of the opinion that the evidence was sufficient to support the claim made and that the trial court erred in directing a verdict against the defendant and third party plaintiff, W. E. Tyson Builders, Inc.
It has long been the law in this State that one who tortiously interferes with the contract rights of another is liable for the
While the rule laid down in 86 C.J.S. Torts § 44 that an action will lie against one who wrongfully interferes with the contract rights of another had been recognized by our Supreme Court in numerous cases, including Bryant v. Barber, 237 N.C. 480, 75 S.E. 2d 410 (1953), Coleman v. Whisnant, 225 N.C. 494, 35 S.E. 2d 647 (1945), and Jones v. Stanly, supra, so far as our research discloses, the proof required for such an action had not been itemized until Childress v. Abeles, 240 N.C. 667, 84 S.E. 2d 176 (1954). In Childress the Court stated that in these cases it is necessary to show: (1) That a valid contract existed between the plaintiff and a third person, conferring upon the plaintiff some contractual right against the third person; (2) that the outsider had knowledge of the plaintiff s contract with the third person; (3)
The appellees contend here, as they did in obtaining the dismissal in the court , below, that the evidence presented was insufficient to establish the following three things defendant was obliged to prove; that First Atlantic breached its contract with defendant; that appellees were not justified in having payment on the $114,210 draft stopped; and that defendant was actually damaged as a consequence of the interference. The grounds relied upon for these contentions and the arguments made in support of them are largely irrelevant to the thrust and tenor of defendant’s case against them and the recorded evidence in support of it.
The appellees’ argument as to justification, equally wide of the mark, starts and stops with their legitimate interest in obtaining early payment of the sum owed from the funds received by defendant. The evidence which tends to show that the appellees falsely claimed that defendant was not going to pay it or the other suppliers and contractors with the draft funds, and that their purpose was to obtain several hundred dollars in funds plaintiff was not entitled to was not even addressed.
And as to damages, the appellees simply and incorrectly argue that W. E. Tyson’s testimony that defendant incurred “some seventy or eighty thousand dollars in additional expenses” in the construction of the ten houses did not “rise above the level of speculation” and that no other evidence of damages was presented. In the first place, Tyson’s testimony as to the extra expense incurred because payment of the draft was stopped was
Reversed and remanded.
Concurring Opinion
concurring.
The scope of a claim for tortious interference with contract includes not only procurement of breach but also all invasions of contractual relations that retard, make more difficult, or prevent performance, or make performance of less value to the promisee. Annot., 84 A.L.R. 43, 52 (1933); see generally Carpenter, “Interference with Contract Relations,” 41 Har. L. Rev. 728 (1928). If defendant here cannot prove breach — since its contract with First Atlantic did not specify a date it was due the funds and since First Atlantic reissued the check within one day after it stopped payment on the draft — defendant has at least presented evidence that due to the filing of liens against its property subsequent performance of the contract was of less value to it.
As to the element of justification, 75 N.C. App. 404, 411, 331 S.E. 2d 318, 322 (1985), to be actionable interference with contract must be otherwise than in the legitimate exercise of one’s own equal or superior right. Carpenter at 763. Whether plaintiff and third party defendant were unjustifiably demanding early payment or were acting within a privilege to protect a right to money due is ordinarily a question for the jury. See Annot., 26 A.L.R. 2d 1227, 1264 (1952). I do not believe that on the evidence here we can say as a matter of law that plaintiff and third party defendant acted with or without sufficient legal reason. Childress v. Abeles, 240 N.C. 667, 674-75, 84 S.E. 2d 176, 182 (1954) (“Justification imports ‘a sufficient lawful reason why a party did or did not do the thing charged, a sufficient lawful reason for acting, or failing to act. It connotes just, lawful excuse, and excludes’ legal ‘malice.’ ”).
For these reasons and for those stated in the opinion, supra, I agree that the evidence on defendant Tyson Builders’ counterclaim, viewed in the light most favorable to it, is sufficient to support a claim for tortious interference with contract and to withstand plaintiff and third party defendant’s motion for directed verdict.
Reference
- Full Case Name
- LEXINGTON HOMES, INC., D/B/A CONTRACTORS WHOLESALE BUILDING SUPPLY, Plaintiff v. W. E. TYSON BUILDERS, INC., Original Defendant and Third Party Plaintiff v. OSCAR L. NORRIS, Third Party Defendant and LEXINGTON HOMES, INC., D/B/A CONTRACTORS WHOLESALE BUILDING SUPPLY, Plaintiff v. W. E. TYSON, Defendant
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