On December 6, 2022, the First Department issued a decision in 4720 Third Ave. Hous. LLC v. CA Ventures LLC, 2022 NY Slip Op. 06879, holding that a tortious interference with prospective business relations claim failed for lack of allegations of wrongful conduct, explaining:
Plaintiffs failed to state a cause of action for tortious interference with business relations since they alleged only prospective contract rights with the nonparty owner of the premises but did not allege more culpable conduct amounting to a crime or an independent tort, or actions undertaken for the sole purpose of inflicting intentional harm on plaintiffs. Instead, plaintiffs alleged that defendants intentionally breached their promise to pay a land deposit to the owner and secure financing — contractual promises alleged in the complaint and outlined in the term sheet — to gain a financial advantage. At any rate, plaintiffs cannot sustain the cause of action because defendants were no strangers to the alleged prospective joint venture agreement with the owner, but were instead part of plaintiffs’ deal and directly involved in negotiations.
(Internal quotations and citations omitted).