De Long Corp. v. Morrison-Knudsen Co.

20 A.D.2d 104, 244 N.Y.S.2d 859, 1963 N.Y. App. Div. LEXIS 2684
Appellate Division of the Supreme Court of the State of New York·Decided December 17, 1963·Published·Cited by 9 cases

Opinion

Breitel, J. P.

Plaintiff recovered a jury verdict for $850,000 in an action in tort for unfair competition and inducement of a breach of contract. To this award interest was added by Special Term, on motion made subsequent to the verdict, resulting in an aggregate judgment of $1,173,351. This court is affirming the judgment in all respects (20 A D 2d 625, 627), and it is only with respect to the postverdict addition of interest that it is desirable to comment.

The issue is whether a plaintiff victimized by a business tort of the nature pleaded and proved in this action is entitled to have interest included as a matter of right on the damages assessed, measured from the date on which the action was begun. It is concluded that it is so entitled, not because enforcement of a contract is involved or because the damages “ flow ” from a breach of contract, but because, in the case of intentional tort resulting in pecuniary injury measurable by economic standards and not involving personal injuries, interest must be added if the victim of the tort is to be made whole. The computation may be from the date the action was commenced, because the [106]*106evidence discloses that the lost profits may have accrued at about that time.

Defendant tortiously obtained and utilized confidential information of the plaintiff from a former employee of plaintiff, in violation of a restrictive covenant made by the faithless employee. The information involved the cost and the manner of constructing and installing jacks which raise and lower large weight-bearing platforms situated over water, such as docks and off-shore “ Texas Towers ” designed as oil-drilling sites or radar stations. As a result of the tort the jury found that defendant, to the exclusion of plaintiff, received a profitable $16,431,000 Government defense contract to construct two offshore radar stations. It fixed the damages to plaintiff, that is, the loss of profits, at $850,000. The verdict depended upon a finding of intentional conduct by defendant with knowledge of the significant facts. The facts are further described in the opinion at Special Term (38 Misc 2d 508), and are fully detailed in the opinions in the related Federal action against the former employee (De Long Corp. v. Lucas, 176 F. Supp. 104 [Bryan, J.], affd. 278 F. 2d 804 [per Friendly, C. J.], cert. den. 364 U. S. 833).

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De Long Corp. v. Morrison-Knudsen Co., 20 A.D.2d 104, 244 N.Y.S.2d 859, 1963 N.Y. App. Div. LEXIS 2684 (N.Y. Ct. App. 1963).

20 A.D.2d 104 (De Long Corp. v. Morrison-Knudsen Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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