Parent Can Intentionally Interfere with Contractual Relationship Involving Partially Owned Subsidiary
John Day has posted on Day on Torts about a new business litigation case from the Tennessee Supreme Court. In Cambio Health Solutions, LLC v. Reardon, the Supreme Court held that a parent corporation can be liable for intentional interference with a contractual relationship between a partially owned subsidiary and a third party. The key to the case is that the contracting party was a partially owned subsidiary. Under a prior Tennessee Supreme Court holding, a “parent corporation has a privilege pursuant to which it can cause a wholly-owned subsidiary to breach a contract without becoming liable for tortiously interfering with a contractual relationship.”
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