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Hino Electric Holding Company, L.P. D/B/A Hino Electric Power Company v. Constellation Newenergy, Inc.

Citation: Not availableDocket: 13-09-00657-CV

Court: Court of Appeals of Texas; May 19, 2011; Texas; State Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

This case involves Hino Electric Holding Company, L.P. (Hino), which sued Constellation NewEnergy, Inc. and CP&L Retail Energy L.P. (collectively, Defendants) for tortious interference with contracts. Hino's claim arose after the City of Harlingen opted for CP&L as its electricity supplier for 2007, following the expiration of its contract with Hino. Hino alleged that Defendants interfered with its 'Blend and Extend' contract with the City by offering competitive pricing. The trial court granted a directed verdict in favor of Constellation and CP&L, determining that Hino failed to provide sufficient evidence of intentional interference. Hino appealed, arguing that the evidence established fact issues concerning its claims. However, the appellate court affirmed the trial court's decision, noting the lack of probative evidence to support Hino's allegations. The court emphasized that liability for tortious interference requires proof of the Defendants' knowledge of the contract and intentional acts to induce its breach, which Hino failed to demonstrate. Consequently, the directed verdicts were upheld, and Hino's motions were overruled.

Legal Issues Addressed

Requirements for Directed Verdict

Application: A directed verdict is appropriate when no evidence of probative force exists on material questions, or if the evidence is so weak that it only raises suspicion about essential facts. The trial court granted a directed verdict for Constellation and CP&L as Hino failed to provide sufficient evidence.

Reasoning: A directed verdict is appropriate when no evidence of probative force exists on material questions, or if the evidence is so weak that it only raises suspicion about essential facts.

Standard of Review for Directed Verdicts

Application: The standard involves a legal-sufficiency analysis of the evidence, considering all evidence in favor of the losing party to determine if any probative evidence raises a fact issue. Hino's appeal was overruled as it could not establish sufficient evidence to avoid a directed verdict.

Reasoning: The standard of review for directed verdicts involves a legal-sufficiency analysis of the evidence, allowing for consideration of all presented evidence in favor of the losing party to determine if any probative evidence raises a fact issue.

Tortious Interference with Existing Contracts

Application: The plaintiff must demonstrate the existence of a contract, intentional interference by the defendant, proximate causation of injury, and actual damages. Hino failed to demonstrate any intentional interference by Constellation or CP&L with its contract with the City.

Reasoning: Hino's claim that Constellation's lower price quotes induced the City to terminate the 'Blend and Extend' contract, constituting tortious interference, lacked evidence.

Tortious Interference with Prospective Business Relations

Application: A plaintiff must show a reasonable probability of entering a contract, an unlawful act by the defendant, intent or knowledge of the interference, and resulting harm. Hino was unable to establish CP&L's intentional interference or any tortious act disrupting its relationship with the City.

Reasoning: Hino failed to demonstrate any evidence of CP&L's intentional interference or any tortious act that would disrupt a contractual relationship with the City.