Interference with contractual relationships Interference with advantageous relationships: o Are all elements of C/L claim of interference with

advantageous relationships present? 1. Must have an existing contract Yes- contract between Horning and the prospective buyer 2. Intentional Yes- show that lawyer showed up the day before closing was set Interference with Advantageous Relationship Yes- showing for sale signs, or sold signs were present and made available to the public 3. Causation Prospective buyers cancelled the contract with the Hornings Interference causes the contract to fail; nothing to indicate any other reason for contract to have failed o 4. Special damages Consequential and Actual Damages Interference Prospective contractual Definition: An intentional, damaging intrusion on anothers potential business relationship, such as the opportunity of obtaining customers or employment: Elements: 1. Reasonable expectation of entering into a valid business relationship 2. D had knowledge of the Ps expectancy of the K 3. Purposeful interference by the D that prevents the Ps legitimate expectancy from being fulfilled; AND 4. Damages to the P resulting from the Ds interference o Prospective Have to prove that a contract would have arisen but for the conduct of the defedant

we hold that a plaintiff seeking to recover for an alleged interference with prospective contractual or economic relations must plead and prove as part of its case-in-chief that the defendant: Not only knowingly interfered with the plaintiffs expectancy, but Engaged in conduct that was wrongful by some legal measure other than the fact of interference itself

Factors in determining whether interference is improper Nature of the actors conduct The actors motive The inter of the other with which the actors conducts interferes The interest sought to be advanced by the actor The social interest in protecting the freedom of action of the actor and the control interest of the other The proximately or remoteness of the actors conduct to the interference (proximate cause) and the relation between the parties.

1. N.C. Gen. Stat. Section 75- The N.C. Unfair and Deceptive Trade Practices Act o State law equivalent of federal Sherman Act (1913) Scope of Sherman Act- Narrow Contracts or combinations in restraint of trade Not remedy for other forms of unfair business practices o Broader than the Sherman Act; called little Sherman act because it is a state law 2. Elements o 1. An unfair or deceptive act or practice; o o 2. In or affecting commerce (in NC) not insubstantial way 3. Causes harm or injury to plaintiff or his business Businesses are sometimes allowed to assert UTPA claims against other businesses because unfair trade practices involving only businesses can affect the consumer as well But one business is permitted to assert an UTPA claim against another business only when the businesses are competitors or are engaged in commercial dealing with each other

N.C. Unfair and Deceptive TRADE Practice ACT

Violation of Section

Defenses:

Commerce

Damages

Mere breach of contract is not enough Actual fraud not required Whether the act had the tendency to deceive Tendency to deceive is the average businessmen False Representation Systematic overcharging for product for services Falling to maintain rental property and insisting on full rent Libel/Slander regarding business dealings

Intent and Good Faith is irrelevant Contributory negligence is not a defense

All business activities, however denominated but not: Lawyers, doctors, accountants rendered member by a member of learned profession is not consider COMMERCE MANAGEMENT is not COMMERCE

Punitive and remedial in nature. Encourages private enforcement Increase the incentive for a settlement.

Proof of damages under 75 To recover damages, party must present evidence from which a jury could reasonably calculate damages Actual injury should be determined by the out of pocket loss suffered by the plaintiff or his business Should be quantifiable- not speculative The jury not told that damages may be trebled Jurys job is to calculate damages as a matter of fact, and then the court under the statute is required to treble what they find You as the lawyer cannot advise the jury that anything they come up with will be multiplied (neither side) Attorneys Fees may be paid at the judges discretion(if the party willfully engaged in the conduct and unwarranted refusal to resolve the matter. FRAUD

Fraud (NC) 1. Made a false representation of material fact 2. Knew it was false (or made it with reckless disregard of its truth or falsity) 3. Intended that the plaintiff rely upon it 4. The plaintiff must be injured by reasonably relying on the false representation