K & K Management, Inc. v. Lee

316 Md. 137, 557 A.2d 965 (1989)

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K & K Management, Inc. v. Lee

Maryland Court of Appeals
316 Md. 137, 557 A.2d 965 (1989)

SH

Facts

K & K Management, Inc. (defendant) owned a motel. K & K entered into a contract with the Lees (plaintiffs) under which the Lees would run a restaurant within the motel and K & K would share in the profit. Under the contract, K & K could terminate the agreement immediately if the Lees created a liability for K & K. After the Lees terminated the employment of a waitress, K & K terminated the contract on the pretext that firing the waitress created liability. K & K began operating the restaurant itself, but the restaurant was not profitable. The Lees filed suit claiming breach of contract, conversion of their equipment, and tortious interference with business relationships, specifically the Lees’ relationships with suppliers and customers. At trial, the Lees showed evidence of particular relationships with customers but offered no proof of contracts that were breached or lost revenue resulting from their loss of relationships with customers and suppliers. The jury found for the Lees and awarded them almost $1 million, including punitive damages for intentional tortious interference with business relationships. K & K appealed, and on appeal, K & K argued that violation of a contract, even if intentional, should have its remedy solely in a breach-of-contract claim and should never lead to a tortious-interference claim as well.

Rule of Law

Issue

Holding and Reasoning (Rodowsky, J.)

Dissent (Adkins, J.)

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