A recent decision by the United States Court of Appeals for the Seventh Circuit rejected a claim of tortious interference asserted by James Nation, an executive whose former employer suspended severance payments contractually owed to him at the behest of the Defendant, American Capital, Ltd. The former employer was experiencing financial difficulties and the Defendant — which was also the former employer’s majority shareholder and primary creditor – directed suspension of the severance payments in order to preserve cash for operations. The Court’s decision relied on the conditional privilege recognized under Illinois law to interfere with contracts, where the defendant acts to protect interests of value greater than or equal to the plaintiff’s contractual rights.
Continue Reading Conditional Privilege and its Impact on Tortious Interference Claims