Facts

Plaintiff Halo Unlimited Inc.'s former independent contractor allegedly interfered with an existing contractual relationship and probable future economic relationship with a hospital, at which Plaintiff provided services as an infant hearing-screening contractor. The hospital canceled Plaintiff's contract, resulting in lost profit damages.

PLAINTIFF'S CONTENTIONS:
Plaintiff contended that Tonya Smith used her position as Plaintiff's independent contractor to portray Plaintiff and its services in a bad light to the hospital, raising claims of billing fraud and equipment misuse in an attempt to discredit Plaintiff's relationship with the hospital management during a transitional period. Plaintiff alleged Smith induced interim hospital management to terminate Halo's services contract and enter into a services contract with Smith and her company, Tender Touch Infant Hearing.

DEFENDANT'S CONTENTIONS:
Defendant contended that Plaintiff's hospital contract would have been canceled without regard to her interference in the relationship due to allegations of fraudulent billing for services.

Settlement Discussions

Plaintiff's CCP 998 offer of $55,000 was made and rejected prior to trial.

Result

Judgment for Plaintiff for $144,464 ($95,877 for intentional interference with contractual and prospective economic relationships; $30,240 for conversion and replevin requiring Defendants to return the equipment; $18,347 for prejudgment interest). Judgment for defendants on breach of contract, and breach of fiduciary duty claims.

Other Information

The hospital's PMK produced two versions of a contract with Smith, dated February and April 2010, along with various termination letters to plaintiff dated in January and March 2010. The earlier letter was never sent, but evidenced the hospital and Smith's engaging in discussions for several months before Plaintiff's contract was actually terminated. Smith produced a third version of her contract with the hospital during discovery, which appeared to have been intentionally manufactured evidence to cover-up her earlier discussions with the hospital about ending its contract with Plaintiff. Smith misled Plaintiff's management, claiming she was going to work for a medical laboratory testing company, when she had already established a contract for her and her company to provide services at the hospital. Plaintiff discovered that Smith retained multiple pieces of durable medical equipment belonging to Plaintiff, which were apparently used to perform testing for the hospital after Plaintiff's contract was terminated. Such equipment was eventually returned to Plaintiff, who sought damages for its rental value, loss of use, and diminished valued. FILING DATE: June 8, 2010.