Legal Memorandum: Punitive Damages in Tortious Interference Claims

Issue: Can a tortious interference claim support a claim for punitive damages?

Area of Law: Litigation & Procedure, Personal Injury & Negligence
Keywords: Tortious interference claim; Punitive damages
Jurisdiction: Federal, Virgin Islands
Cited Cases: None
Cited Statutes: Restatement (Second) of Torts § 774A, cmt. a.; V.I. Code § 4; Restatement (Second) of Torts § 908(2)
Date: 11/01/2006

Because tortious interference with contract or business relations is an intentional tort, punitive damages may be recovered.  See Rite Aid Corp. v. Lake Shore Investors, 471 A.2d 735, 44 A.L.R.4th 1063 (Md. 1984); Restatement (Second) of Torts § 774A, cmt. a.  

The Virgin Islands follows the punitive damages rules set out in Restatement section 908.  See 1 V.I. Code § 4; Dunn v. HOVIC, 1 F.3d 1371, 1374 (3d Cir. 1993).  Section 908 provides that punitive damages may be awarded for conduct that is “outrageous.”  Restatement (Second) of Torts § 908(2). 

The general rule is that “where a party’s state of mind or motive is in issue, summary judgment is disfavored.”   G.S. Enters. v. Falmouth Marine, 571 N.E.2d 1363, 1371 n.4 (Mass. 1991).

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