Opinion ID: 534410
Heading Depth: 2
Heading Rank: 1

Heading: Interference with Exclusive Services Contract

Text: 36 Plaintiff alleges that the defendants intentionally interfered with his contract to provide radiology services at Hoemako Hospital. Although the amended complaint does not name the specific defendants, the claim appears to be directed against Ravi and Sood. Moss claims that after he had blown the whistle about the TLA procedure, Ravi and Sood complained to the hospital administration that plaintiff was not being cooperative in performing the TLA's. Later, Dr. Ravi initiated a physical altercation with plaintiff, after which Dr. Ravi demanded that he be terminated. 37 The district court dismissed plaintiff's claim of intentional interference with his exclusive services contract against Ravi and Sood on Arizona statute of limitations grounds. A two year limitations period applies to the interference with contract claims. Ariz.Rev.Stat.Ann. § 12-542; Clark v. AiResearch Mfg. Co. of Arizona, 138 Ariz. 240, 673 P.2d 984, 987 (Ct.App.1983). 38 Plaintiff's amended complaint, which added defendants Ravi and Sood, was filed on May 9, 1985. Dr. Moss received notice in February 1983 that his contract would be terminated, but was not actually terminated until May 12, 1983. He maintains that until May 12, 1983 there remained the chance that his contract would be renewed, and that the elements of his claim for intentional interference with contract had not accrued. 39 In this case, Arizona law governs when the cause of action for interference with contract accrues. See Daniels v. Fesco Division of Cities Service Co., 733 F.2d 622 (9th Cir.1984). No Arizona case resolves whether a cause of action for interference with an employment contract accrues on the date of notice of termination, or actual date of termination. However, Daniels, which interprets California law, is closely analogous. 40 In Daniels, plaintiff appealed the district court's dismissal of his wrongful discharge claim on statute of limitations grounds where plaintiff filed suit more than two years after notice of termination, but less than two years after termination. This court was unable to find a relevant California case, and sought to apply the rule that the California courts would follow given a similar situation. Accordingly, it turned to federal labor law, since California courts have turned to federal labor law in developing state labor law. Id. at 623. The Daniels court held that [f]ederal case law supports the position that an employer's liability for wrongful discharge commences upon notice of the employee's termination even though the employee continues to serve the employer after receipt of the notice. Id. 41 Daniels presents a nearly identical factual situation, and provides the proper framework for filling the gap in Arizona law. We can see no reason not to apply the holding in Daniels to a claim for intentional interference with contract as well as to a claim for wrongful discharge. The district court was therefore correct in granting judgment in favor of defendants Ravi and Sood on plaintiff's first interference with contract claim. 42