While a claim for intentional interference with business relationships does not “arise out of a claim for interference with contract rights” and is thus not expressly listed in the GTLA as a cause of action for which a governmental entity retains immunity, because it is an intentional tort, a plaintiff seeking to assert an intentional interference with business relationships claim against a governmental entity must still show negligent supervision or some direct negligence by the entity.
In Robinson v. City of Clarksville, Tennessee, No. M2019-02053-COA-R3-CV (Tenn. Ct. App. Jan. 31, 2023), plaintiffs owned a restaurant in defendant City. In 2002, plaintiffs sold a portion of an empty lot next to the restaurant to defendant. Plaintiffs claim that the mayor at the time promised that the City would install utilities and build a public alleyway on the property. In 2015, plaintiffs decided to build a second restaurant on the empty lot and asked the City to build the promised alleyway, which the City refused to do. Further, while constructing a sewer line, the City inadvertently placed part of the line on plaintiffs’ property. This suit followed, asserting several contract and property claims, as well as a tort claim for intentional interference with business relationships. The trial court dismissed the tort claim against the City pursuant to the GTLA, and dismissal was affirmed on appeal.
The only tort claim at issue in this case was plaintiff’s claim of intentional interference with business relationships. While governmental entities are generally immune from suit, the GTLA specifically removes immunity for certain claims. At issue here was Tenn. Code Ann. § 29-20-205, which states that immunity is not removed “if the injury arises out of…interference with contract rights.” Based on this language, the trial court ruled that immunity was not removed, but the Court of Appeals disagreed with this analysis.