Public-domain · open source
OpenJurist

174 Misc. 885

Braden v. Perkins

New York Supreme Court

Decided July 11, 1940

New York Supreme Court · decided 1940-07-11

Key passage — most relied on by later courts

““It is well settled that a director or officer of a corporation may not be field liable where his corporation has been allegedly induced by him to violate its contractual obligation. Greyhound Corporation v. Commercial Casualty Ins. Co., 259 App.Div. 317 , 19 N.Y.S.2d 239 . It would seem that the same principle applies with •equal force to a member of a partnership. The argument that the •conspiracy counts change the moving party’s position is not persuasive. * * * ””

quoted by 1 later decision, including 181 F. Supp. 809 - Wilson & Co. v. United Packinghouse Wkrs. of America

Relies on Brackett v. . Griswold · Knapp v. Penfield

Good law ✅— No negative treatment on recordhow we know

Decided 1940-07-11

How this case has been cited

Cited by 10 later decisions — most recently October 1986

2 federal appellate · 2 state decisions

4019401950196019701980decided

Later decisions citing this case, by decade. The current decade is in progress, and our corpus holds fewer opinions from the most recent years, so the latest bars are undercounted — not a real decline.

View the full empirical analysis of this case →

Benvenga, J.

¶1This motion is made by the defendant Newbold to dismiss the complaint for failure to state a cause of action against him. The complaint sets forth certain causes of action in tort based on the alleged wrongful inducement of the breach of a contract which the plaintiff had with William H. Newbold Son <fc Company, a copartnership of which the moving defendant was and now is a partner. The question presented is whether the moving defendant can be held hable in a tort action for inducing a breach of contract by the partnership of which he was a member.

¶2It is well settled that a director or officer of a corporation may not be held hable where his corporation has been allegedly induced by him to violate its contractual obligation. (Greyhound Corp. v. Commercial Casualty Ins. Co., 259 App. Div. 317.) It would seem that the same principle apphes with equal force to a member of a partnership. The argument that the conspiracy counts change the moving party’s position is not persuasive. In the first place, these counts add nothing to the substantive causes of action pleaded. Despite the conspiracy allegations, the wrong about which the plaintiff complains is the tort of wrongful inducement of the breach of contract. (Brackett v. Griswold, 112 N. Y. 454, 466, 467; Green v. Davies, 182 id. 499, 503, 504; Bob v. Hecksher, 235 App. Div. 82, 83, 84.) Moreover, not only did the moving defendant, as partner, have a financial interest in his firm, but, in addition, he owed a duty, in such capacity, to his other partners, which gave him an absolute right to interfere with any contract which the *886plaintiff may have had with the partnership or with any negotiations which the plaintiff may have been carrying on with the partnership. Such interference was privileged, excusable and justified. (Knapp v. Penfield, 143 Misc. 132, 133, 134.)

¶3The motion is accordingly granted.

/174/misc/885 · .json · Public domain