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General Contractor Tortiously Interfered with Subcontractor

Published: May 02, 2017 by Luther Liggett

A general contractor which discharged a subcontractor, then hired the subcontractorís employees, resulted in damages for the subcontractorís lost profits.

The general contractor originally hired a framing subcontractor, which then subcontracted the work to another framing sub-subcontractor. When the general contractor discharged the first-tier subcontractor, the framing workers had to leave the project.

The general contractor directly approached the workers, and encouraged them to return to the job through a temporary employment agency.

The framing sub-subcontractor could not hire his own workers for other projects, or even to continue on the same project.

The court found that the general contractor tortuously interfered in the employment relationship between the sub-subcontractor and its workers.

The court accordingly awarded lost profit of 17% on what the sub-subcontractor would have invoiced, plus attorney fees.

Thompson Thrift Constr. v. Lynn, 5th Dist. Delaware, Case no. 16-CAE-10-0044, 2017-Ohio-1530.

If you have questions, please do not hesitate to contact attorney Luther L. Liggett†of Graff & McGovern at 614-228-5800, ext. 6.