Coventry Group, Inc. v. Gottlieb
7 N.E.3d 611
Ohio Ct. App.2014Background
- Coventry Group obtained a $713,789 federal judgment against Capital Creation for unpaid commissions related to co-brokered corporate-owned life insurance sales.
- Capital Creation filed bankruptcy; its sole shareholder was Gottlieb, who then (with advisor Hall) formed a successor company, J.L. Gottlieb Agency (JLGA).
- Coventry alleged the formation of JLGA and the bankruptcies were intended to frustrate collection of the judgment and avoid discovery in related litigation.
- Coventry sued Gottlieb and Hall (2013) for tortious interference with a business expectancy and civil conspiracy, claiming the judgment itself was a protectable business expectancy.
- Gottlieb and Hall moved to dismiss under Civ.R. 12(B)(6); the trial court granted dismissal and Coventry appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interference with collection of a judgment can support tortious interference with a business expectancy | Coventry: A judgment (and efforts to collect it) is a business expectancy and its frustrated collection constitutes tortious interference | Gottlieb/Hall: Collection of a judgment is not a prospective business relationship; tortious interference protects prospective or existing business relations, not judgment collection | Court: Dismissal affirmed — interference with collection of a judgment is not cognizable as tortious interference with a business expectancy |
| Whether Gottlieb can be personally liable as principal for tortious interference | Coventry: Gottlieb acted through Capital Creation and JLGA to interfere and should be personally liable | Gottlieb: No valid tort claim exists to impute personal liability | Held: Moot because underlying tort claim fails; not addressed on merits |
Key Cases Cited
- Mitchell v. Lawson Milk Co., 40 Ohio St.3d 190 (Ohio 1988) (standard for taking complaint allegations as true on a motion to dismiss)
- O’Brien v. Univ. Community Tenants Union, Inc., 42 Ohio St.2d 242 (Ohio 1975) (standard for dismissal under Civ.R. 12(B)(6))
- A & B–Abell Elevator Co. v. Columbus/Cent. Ohio Bldg. & Constr. Trades Council, 73 Ohio St.3d 1 (Ohio 1995) (definition of tortious interference with a business relationship)
- Firestone v. Galbreath, 67 Ohio St.3d 87 (Ohio 1993) (recognition of tortious interference with an inheritance expectancy and reliance on the Restatement)
- EJS Properties, LLC v. Toledo, 651 F.Supp.2d 743 (N.D. Ohio 2009) (noting terminology distinguishing business expectancy from business relationship)