Opinion ID: 537268
Heading Depth: 2
Heading Rank: 2

Heading: interference with a prospective contractual relation

Text: 35 An obvious element of the tort of intentional interference with a prospective contractual relation 7 is a relation with which the defendant has interfered. It is well-established that the relation must be one to which the defendant is an outsider, see, e.g., Ellis v. City of Valdez, 686 P.2d 700, 708 (Alaska 1984); Glenn v. Point Park College, 441 Pa. 474, 272 A.2d 895, 897 (1971); Gonzalez v. Gutierrez, 694 S.W.2d 384, 388 (Tex.Ct.App.1985); Board of Trustees v. Holso, 584 P.2d 1009, 1017 (Wyo.1978); see also Restatement (Second) of Torts Sec. 766B (1979); Annotation, Liability of Third Party for Interference with Prospective Contractual Relationship Between Two Other Parties, 6 A.L.R.4th 195, 201-03 (1981), for one cannot interfere 8 with its own affairs. 36 Dow neither pleaded nor proved the existence of any prospective relation between Dow and anyone other than Hartford. The testimony of the president of Research Products that his company would not have contributed to the settlement, R.Vol. VII at 989, went uncontradicted. Clearly, Dow expected any contribution to come directly from Hartford. 9 In fact, Dow's complaint in this action does not allege any interference by Hartford between Dow and Research Products; instead, it charges Hartford with disrupting the arrangement previously reached by Dow and The Hartford's representatives. R.Vol. I at Tab 85, p. 14 (emphasis added). 37 Generally, an insured defendant and its insurer have a common, interrelated interest in defending and/or settling the suit. 1A R. Long, The Law of Liability Insurance Sec. 5A.01, at 5A-8 (1989); A. Windt, Insurance Claims and Disputes Sec. 4.18, at 171 (2d ed. 1988); cf. Gonzalez v. City of Franklin, 137 Wis.2d 109, 403 N.W.2d 747, 754 (1987); Hilker v. Western Auto. Ins. Co., 204 Wis. 1, 231 N.W. 257, 259 (1930), aff'd on reh'g, 204 Wis. 1, 235 N.W. 413 (1931). In Wisconsin, a tortfeasor's insurer is liable to the victim, and may be sued directly. Wis.Stat.Ann. Secs. 632.24, 803.04(2) (West 1980). This direct liability  'place[s] the burden upon the insurance carrier, who has been compensated in advance for its liability, to pay the damage assessed for such injuries to person and damage to property as have been caused by'  the insured. FDIC v. MGIC Indem. Corp., 462 F.Supp. 759, 761 (E.D.Wis.1978) (quoting Ducommun v. Strong, 193 Wis. 179, 212 N.W. 289, 292 (1927)); see also Loy v. Bunderson, 107 Wis.2d 400, 320 N.W.2d 175, 187 (1982). Thus, when a tortfeasor and its insurer are sued in Wisconsin, the insurer is the real party in interest. Sayre v. Townsend, 106 F.R.D. 544, 545 (E.D.Wis.1985); see also Padden v. Gallaher, 513 F.Supp. 770, 772 (E.D.Wis.1981); 3 G. Couch, Cyclopedia of Insurance Law Sec. 45:930, at 586 (rev. 2d ed. 1984). 38 As it happens, Hartford was not a named defendant in the Kauther and Nordrum actions against Dow and Research Products. This is not important to the present case, though, because nothing would have occurred any differently had Hartford been named: Hartford conduct[ed] the defense, employ[ed] its own attorney[ ], decide[d] if and when to settle, and [was] in full control of the entire litigation. Kirchen v. Orth, 390 F.Supp. 313, 318 (E.D.Wis.1975). Also, the fact that Hartford was not named did not affect Hartford's direct liability to the grain workers if Research Products was culpable. Wis.Stat.Ann. Sec. 632.24 (West 1980); see Loy v. Bunderson, 320 N.W.2d at 189; Kranzush v. Badger State Mut. Cas. Co., 103 Wis.2d 56, 307 N.W.2d 256, 266 (1981); A. Windt, supra, at 463. 39 Hartford, not Research Products, was Dow's only prospective source of contribution to the settlement. Hartford cannot be held liable for interfering with its own prospective contractual relation, so the judgment against it must be reversed.CONCLUSION 40 The verdict against Research Products cannot stand because of the misapplication of the statute of limitations, the failure of the trial court to instruct the jury on the timeliness vel non of Kauther and Nordrum's claims, and the exclusion of certain evidence. The decision against Hartford is deficient because Hartford did not interfere with any prospective contractual relation. 41 The judgment against Research Products is REVERSED and REMANDED for further proceedings consistent with this opinion. The judgment against Hartford is REVERSED.