By The Law Offices of John Day, P.C. on Feb 10, 2025 05:48 am
In a case about the demise of a family business, the Court of Appeals reversed trial court rulings for the plaintiff on tort claims of intentional interference with business relationships and conversion. In Grubb v. Grubb, No. E2023-01358-COA-R3-CV (Tenn. Ct. App. Jan. 8, 2025), the plaintiff and the defendant were brothers who ran several companies as a family business before their relationship deteriorated. The plaintiff eventually sued the defendant for breach of contract, intentional interference with business relationships, conversion, and other claims. The trial court credited the plaintiff’s testimony that the brothers had an oral agreement. It awarded the plaintiff approximately $2.25 million in damages plus attorneys’ fees and ordered the redistribution of certain companies. On appeal, the verdict for the plaintiff was reversed. After reversing the finding that the brothers had an express oral agreement, the Court also reversed the finding for the plaintiff on both tort claims. Noting the elements of an intentional interference with business relationships claim, the Court stated that the trial court found that the plaintiff “proved [the defendant’s] improper motive and improper means as [the defendant] maliciously harmed [the plaintiff] and misused his position of control over the LLCs to effectuate the interference.” But while the trial court focused on ways the defendant pushed the plaintiff out of the business, such as asking employees not to talk to him and keeping him from getting equal pay, the Court of Appeals pointed out the plaintiff continued to have “opportunities to do business with the jointly owned companies.”
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