Wednesday, January 12, 2011

Intentional interference with contractual relations requires intentional act directed against plaintiff -- damage incidentially caused insufficient to ground claim

Print N' Promotion v. Kovachis, 2011 ONCA 23, released a few moments ago online, gives a useful summary of the law relating to
Intentional interference with contractual relations. The Court writes:

Tort-Based Claims: The Intention to Injure Requirement

[18] The trial judge was alive to the established elements of the tort of intentional interference with contractual relations and economic interests. In her reasons at para. 40, citing Lineal Group Inc. v. Atlantis Canadian Distributors Inc. (1998), 42 O.R. (3d) 157 (C.A.), leave to appeal refused, [1998] S.C.C.A. No. 608 and Reach M.D. Inc. v. Pharmaceutical Manufacturers Assn. of Canada (2003), 65 O.R. (3d) 30 (C.A.), she correctly observed that, to establish the tort in this case, the Subtenant was required to prove three things: (1) an intention by the Landlord to injure the Subtenant; (2) interference by the Landlord, by unlawful means, with the Subtenant's business; and (3) that the Subtenant suffered economic loss as a result of the Landlord's wrongful interference.

[19] The trial judge then stated the following at para. 41, again citing the decision of this court in Reach M.D.:

To satisfy the first criterion, it is not necessary for [the Subtenant] to demonstrate that the defendants' predominant purpose was to injure it. The first element of the tort will be met as long as the defendants' acts were in some measure directed against [the Subtenant], even if the defendants' predominant purpose was to advance their own interests.

...
[23] First, as I have said and as the trial judge noted, proof of an intention by the defendant to injure the plaintiff is an essential element of the tort of intentional interference with contractual relations and economic interests: see for example, Alleslev-Krofchak v. Valcom Limited (2010), 322 D.L.R. (4th) 193 (Ont. C.A.), at para. 39, leave to appeal filed, [2010] S.C.C.A. No. 403. Notably, the intentional acts at issue must be directed, at least in part, against the complaining party – in this case, the Subtenant: see for example, Lineal, at p. 159. This, too, was recognized by the trial judge, as above-indicated.

[24] Importantly, the requirement of an intention to injure is not made out where the wrongful conduct at issue was not deliberately targeted against the complaining party but, rather, was simply an incidental or foreseeable result of the defendant's wrongful conduct. The purpose of the unlawful or wrongful conduct must be to inflict injury on the complaining party, that is, the plaintiff: see Cheticamp Fisheries Co-op Ltd. v. Canada (1995), 139 N.S.R. (2d) 224 (N.S.C.A.), at para. 36, leave to appeal refused, [1995] S.C.C.A. No. 202.

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