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Keywords

contractplaintiffdefendantdamagesequitable relief
contractplaintiffdefendantdamagestrialcorporationequitable relief

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Northern Wisconsin Co-op. Tobacco Pool v. Bekkedal, 182 Wis. 571, 197 N.W. 936

Facts

The plaintiff, a co-operative association, was formed to buy tobacco from its members and resell it, with about 6,500 growers under contract to deliver their tobacco. The defendants, M. H. Bekkedal & Son, were engaged in the tobacco business and conspired to solicit these growers to breach their contracts with the plaintiff. They misrepresented the validity of the contracts and offered higher prices to induce breaches, which threatened the existence of the plaintiff's cooperative.

The complaint alleges that plaintiff is a corporation duly organized and transacting business as a co–operative association under and pursuant to the laws of the state of Wisconsin; that the defendants M. H. Bekkedal and Lloyd Bekkedal are copartners, transacting business as M. H. Bekkedal & Son, and as such are engaged in buying, sorting, packing, and selling leaf tobacco throughout the entire tobacco–growing area of Wisconsin.

Issue

The main legal issue was whether the defendants unlawfully interfered with the contracts between the plaintiff and its members, thereby causing damages to the plaintiff.

The question which first should be considered is whether the plaintiff is entitled to equitable relief preventing the defendants from interfering with the contracts existing between the plaintiff and its numerous members.

Rule

The court applied the principle that one who maliciously induces another to breach a contract with a third party is liable for the damages resulting from such breach.

We consider the law well settled that one who maliciously induces another to breach a contract with a third person is liable to such third person for the damages resulting from such breach.

Analysis

The court found that the defendants knowingly solicited members of the plaintiff to breach their contracts, offering them higher prices and misrepresenting the validity of the contracts. This conduct was deemed malicious interference, as it was intended to create dissatisfaction among the members and undermine the cooperative's business. The court emphasized that the plaintiff's cooperative structure was essential for the farmers to market their tobacco effectively and that the defendants' actions posed a significant threat to this arrangement.

The trial court specifically found that the defendants had deliberately solicited persons, known by them to be signers of the contracts with the plaintiff, to break said contracts, and agreed to indemnify and protect such growers against damage to the plaintiff for or on account of such breach.

Conclusion

The court concluded that the plaintiff was entitled to equitable relief, restraining the defendants from further interference with the contracts. The judgment was modified and affirmed, protecting the cooperative's business interests.

As conclusions of law it was found that the plaintiff is entitled to judgment restraining the defendants from interfering in any manner with any of the business matters of the plaintiff.

Who won?

The Northern Wisconsin Co-operative Tobacco Pool prevailed in the case because the court found that the defendants had maliciously interfered with the contracts, which was detrimental to the cooperative's operations.

The court found that the defendants had conspired to induce members to breach their contracts with the plaintiff, which was detrimental to the cooperative's business.

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