By The Law Offices of John Day, P.C. on Apr 12, 2024 05:53 am
Where plaintiffs asserting a tortious interference with a business relationship claim could not show that the defendants intended to cause a breach or termination of the relationship, which had already been breached before defendants’ involvement, or that defendants acted with an improper motive, summary judgment for defendants was affirmed. In Throckmorton v. Lefkovitz, No. M2022-01124-COA-R3-CV (Tenn. Ct. App. Feb. 29, 2024), plaintiff attorneys had previously represented clients in a property dispute in which clients’ goal was to be awarded the property at issue. Plaintiffs and clients had entered into a contingency fee agreement stating that clients would pay plaintiffs a percentage of the recovery, but recovery was not defined. After clients successfully obtained the property, plaintiff attorneys attempted to recover the percentage in the fee agreement based on a contract for the sale of the land that clients entered into. Clients contested that the amount sought was reasonable, and clients eventually hired defendant attorneys to represent them in the fee dispute. Defendants advised clients to attempt to settle the dispute, and defendants engaged in settlement discussions with plaintiffs on behalf of clients. Defendants informed plaintiffs that if a settlement was not reached, clients would file for bankruptcy. Clients ultimately did file for bankruptcy, and through the bankruptcy process, plaintiffs and clients settled the fee dispute. Thereafter, plaintiff attorneys filed this case against defendant attorneys for tortious interference with a business relationship. The trial court granted defendants summary judgment, finding that the bankruptcy was a legitimate option, that defendants did not act with improper intent, and that there was no evidence that defendants “acted in self-interest.” Summary judgment was affirmed on appeal.
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