Opinion ID: 6534110
Heading Depth: 2
Heading Rank: 1

Heading: Tortious Interference with Prospective Contractual Relation

Text: [¶21] This Court adopted the general description of tortious interference with a prospective contractual relation from Restatement (Second) of Torts § 766B (1979, updated 2018) : One who intentionally and improperly interferes with another's prospective contractual relation (except a contract to marry) is subject to liability to the other for the pecuniary harm resulting from loss of the benefits of the relation, whether the interference consists of (a) inducing or otherwise causing a third person not to enter into or continue the prospective relation or (b) preventing the other from acquiring or continuing the prospective relation.  Ahrenholtz v. Laramie Economic Development Corp., 2003 WY 149A, ¶ 17, 79 P.3d 511 , 515 (Wyo. 2003) (as amended on rehearing) (citing Birt v. Wells Fargo Home Mortgage, Inc., 2003 WY 102 , ¶ 71, 75 P.3d 640 , 663 (Wyo. 2003) ). The specific elements of a claim for tortious interference with contract or prospective contractual relation are: (1) The existence of a valid contractual relationship or business expectancy; (2) knowledge of the relationship or expectancy on the part of the interferer; (3) intentional and improper interference inducing or causing a breach or termination of the relationship or expectancy; and (4) resultant damage to the party whose relationship or expectancy has been disrupted. Gore v. Sherard, 2002 WY 114 , ¶ 13, 50 P.3d 705 , 710 (Wyo. 2002) (quoting Fremont Homes, Inc. v. Elmer, 974 P.2d 952 , 955 n.1 (Wyo. 1999) ). See also Sheaffer v. State ex rel., University of Wyoming, 2009 WY 19 , ¶ 51, 202 P.3d 1030 , 1044 (Wyo. 2009). [¶22] Damages for tortious interference with prospective contractual relation include the damaged party's lost profits. Exotex Corp. v. Rinehart, 3 P.3d 826 , 830 (Wyo. 2000). In tort actions, 'lost profits' means the expected gains from transactions which the injured party expected to complete had it not been for the tortious interference. Id. (quoting 22 Am.Jur.2d Damages § 624 (1988) ). Lost profit is a net figure. It is calculated by subtracting the damaged party's necessary costs of doing business from the earnings he lost as a result of the opposing party's improper interference. See, id. See also , Hopper v. All Pet Animal Clinic, Inc., 861 P.2d 531 , 548 (Wyo. 1993) (addressing lost profit damages for breach of a covenant not to compete). Calculating the cost and expense of operation is an essential item in the proof of damages in a suit seeking net lost profits. Hopper, 861 P.2d at 548 . Net lost profit must be proven with a reasonable degree of certainty. Id.