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Supposedly I notified my end customer that a intermediary supplier which has bad credit history with us (primary supplier) and just bounced a check. The intermediary supplier advised the end customer has cancelled $500,000 of business through the intermediary which only 1% is of my business. The end customer appears to continue to use our products directly from us or through another intermediary. The intermediary in question said that it was my conversation that caused the cancellation and the fact that I exposed the bounced check is breaking a non disclosure and they will proceed to take me to court. Is there any validity to these verbal statements?

Submitted: 464 days and 7 hours ago.
Category: Legal
Value: $15
Status: AWAITING CUSTOMER ACTION
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Optional Information

California

Posted by JD 464 days and 6 hours ago.

Info Request

Do you have a contract with the intermediary? Were the communications you had with the end customer truthful?

464 days and 6 hours ago.

Reply

I have contract with supplier as independent representative not with the intermediary.

I dont recall if I personally exposed the bounced check.

I did call the end customer to clear up another issue.

I did call the intermediary to tell them there check bounced.

The intermediary says that the end customer mentioned my name as the source of the bounced check and I was the cause to cancel doing business with the intermediary.

Simply said the intermediary says the end customer cancelled the business because of my 2 minute phone call.

Accepted Answer

In California, the law is settled that a stranger to a contract may be liable in tort for intentionally interfering with the performance of the contract. To prevail on a cause of action for intentional interference with contractual relations, a plaintiff must plead and prove (1) the existence of a valid contract between the plaintiff and a third party; (2) the defendant's knowledge of that contract; (3) the defendant's intentional acts designed to induce a breach or disruption of the contractual relationship; (4) actual breach or disruption of the contractual relationship; and (5) resulting damage. To establish the claim, the plaintiff need not prove that a defendant acted with the primary purpose of disrupting the contract, but must show the defendant's knowledge that the interference was certain or substantially certain to occur as a result of his or her action.

 

Reeves vs. Hanlon 33 Cal. 4th 1130 (Cal. 2004).

 

This may be difficult for your intermediary to prove, but I think at this point you should sit down and get your lawyer up to speed. You do not want to dig this little hole any deeper by communicating further with the intermediary in a negative way. The best thing you can do now is to leave it alone and get a good lawyer to advise you on how best to prevent a lawsuit.

 

If they do sue, it sounds like you have a good defense... however I also know you do not want to be forced to defend yourself in court. It takes too much time, money and effort.

 

Good luck.

 

________________________

I am not your attorney. Therefore no attorney-client relationship exists and any communications on this website are not subject to the attorney-client privilege. For this reason, please do not divulge any personal information and use this site only for hypothetical questions. This forum is for general questions and answers and I cannot provide you with applicable law or legal opinions or advice in your jurisdiction. Please seek the advice of a competent attorney in your jurisdiction. While I can answer general questions and discuss general legal principles, I cannot give you legal advice in your state. The internet is a great place to get general information but should not be seen as a substitute for the attorney-client relationship or the services of a good lawyer in your state.

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Expert: JD
Pos. Feedback: 100.0 %
Accepts: 
Answered: 8/16/2008

Lawyer

Over 10 years in practice as a litigator ... civil and criminal

464 days and 6 hours ago.

Reply

Is the contract the bounced check?

Reeves vs. Hanlon 33 Cal. 4th 1130 (Cal. 2004).

 

I personally had/have no intentions to disrupt the business model. The intermediary is 90 days late $10000 behind and now a bounced check. The end customer will not get parts. The factory asks for my help shouldn't the end customer know?

Posted by JD 463 days and 23 hours ago.

Answer

The contract is referring to the contract between the intermediary and the end customer (which was allegedly ended due to your conversation with the intermediary). I think the customer should know what was going on, and I do not think you tortiously interfered with their contractual relationship, however just because I think it will not prevent them from filing suit and costing you a great deal of legal expense in defending the frivilous claim. This is why I feel you should consult your attorney now and take steps to prevent any suit from being filed (such as a letter).

 

Good luck to you.

 

________________________

I am not your attorney. Therefore no attorney-client relationship exists and any communications on this website are not subject to the attorney-client privilege. For this reason, please do not divulge any personal information and use this site only for hypothetical questions. This forum is for general questions and answers and I cannot provide you with applicable law or legal opinions or advice in your jurisdiction. Please seek the advice of a competent attorney in your jurisdiction. While I can answer general questions and discuss general legal principles, I cannot give you legal advice in your state. The internet is a great place to get general information but should not be seen as a substitute for the attorney-client relationship or the services of a good lawyer in your state.

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