Opinion ID: 766262
Heading Depth: 2
Heading Rank: 3

Heading: Interference with Business Relations

Text: 46 Syndicate Sales alleges that Hampshire Paper's actions constitute interference with business relations under Indiana law. The Indiana Court of Appeals has explained the elements necessary for such a claim: 47 The elements of an action for tortious interference with a contract are (1) existence of a valid and enforceable contract; (2) defendant's knowledge of the existence of the contract; (3) defendant's intentional inducement of breach of the contract; (4) the absence of justification; and (5) damages resulting from defendant's wrongful inducement of the breach. 48 In addition it has been recognized that an action may lie under Indiana law for tortious interference with a business relationship even though there was no valid contract. In such cases, however, it appears to be critical that the defendant acted illegally in achieving his end. 49 Biggs v. Marsh, 446 N.E.2d 977, 983 (Ind. Ct. App. 1983). 50 The district court dismissed the interference with business relations claim on the ground that Syndicate Sales, which apparently did not have contracts with its purchasers, had not proven the required illegal action. Syndicate Sales contends that the dilution claim, which we are remanding to the district court, may serve as the required illegal act for the interference with business relations claim. Hampshire Paper responds that only criminal acts may serve as such predicate acts under Indiana law. Hampshire Paper does not cite a single Indiana case indicating that the predicate illegal act must be criminal. Moreover, courts interpreting Indiana law have held that non-criminal illegal acts are sufficient. See United States v. FKW Inc., 997 F. Supp. 1143, 1153 (S.D. Ind. 1998); Moffett v. Gene B. Glick Co., Inc., 604 F. Supp. 229, 239 (N.D. Ind. 1984), overruled on other grounds, Reeder-Baker v. Lincoln Nat'l Corp., 644 F. Supp. 983 (1986). We therefore cannot accept Hampshire Paper's argument. This claim must be remanded as well.