During this upcoming Session, the New York Court of Appeals will hear oral arguments in White Plains Coat & Apron Co., Inc. v. Cintas Corp. regarding this certified question from the United States Court of Appeals for the Second Circuit: Whether a generalized economic interest in soliciting business for profit can constitute a defense to a claim of tortious interference with an existing contract for an alleged tortfeasor with no previous economic relationship with the breaching party.

The plaintiff rents napkins, tablecloths, and other laundered articles to bars, restaurants, and other businesses.  The plaintiff executes signed contracts with the 2 majority of its customers.  In these form contracts, a plaintiff customer typically “agrees to rent from [the plaintiff] exclusively during the term of [the] Agreement, all of Customer’s requirements for laundered articles.”  The plaintiff accused the breaching party of soliciting its customers and encouraging them to breach the service contracts with the plaintiff.  The alleged breaching party argued that it had no knowledge of the agreements with the plaintiff and hat it had not induced any breaches.

The open issue is whether the defense to the tortious interference claim applies where the alleged breaching party only has a general economic interest in an entity.  The defense holds that where a third party has an “economic interest” in an entity and interferes with an existing contractual relationship between the plaintiff and that entity, such interference is considered privileged and the plaintiff must show malice or illegality to establish a tortious interference claim.