Francis Hospitality, Inc. v. Read Properties, LLC, 296 Va. 358

Summary

The Supreme Court of Virginia held that parties to a contract cannot be liable for tortious interference with their own contract. Because the business-conspiracy claims were predicated on the unsuccessful tortious-interference claims, those claims and the award of treble damages and attorney's fees were reversed. The court left undisturbed the $34,020 breach-of-contract judgment against Francis Hospitality and Delta.

Holdings

1. A party to a contract cannot be held liable for tortious interference with that contract; liability for tortious interference lies only against a stranger or other party outside the contractual relationship.
2. Because the tortious-interference claims failed as a matter of law, they could not supply the underlying unlawful act required for Read Properties' statutory business-conspiracy claims under Code §§ 18.2-499 and -500.
3. The circuit court's judgment that Francis Hospitality and Delta were jointly liable for $34,020 in remaining leasing fees remained undisturbed.

Questions Presented

1. Whether Francis Hospitality and Delta could be liable for intentionally interfering with the lease agreement when they were parties to that contractual relationship.
2. Whether the alleged tortious interference could serve as the underlying unlawful act for Read Properties' statutory business-conspiracy claims under Code §§ 18.2-499 and -500.
3. Whether the circuit court's breach-of-contract judgment should remain undisturbed.

Disposition

reversed