The plaintiff factoring company sued the defendant transportation company and its principal for breach of a factoring agreement and personal guarantee.
The defendants counterclaimed for intentional interference with economic relations, alleging the plaintiff unlawfully seized funds and ruined their business relationship with a major client after the factoring agreement had been orally terminated.
The court found that promissory estoppel precluded the plaintiff from relying on the terminated factoring agreement.
However, the defendant still owed $200,000 for third-party invoices assigned to the plaintiff.
On the counterclaim, the court found the plaintiff liable to the corporate defendant for intentional interference with economic relations, awarding $175,000 in damages at large, but dismissed the principal's personal claims as derivative.