The Delaware Court of Chancery’s recent decision in Chapter 7 Trustee Constantino Flores v. Strauss Water, C.A. No. 11141-VCS (Del. Ch. Sept. 22), covers many familiar aspects of Delaware law, such as the importance of contracts under Delaware law and enforcing contracts as written and not how a plaintiff wishes it might have been written. The opinion also addresses ground less traveled—how to plead properly a claim for tortious interference with prospective business relations. This article focuses on the distinction the Delaware Court of Chancery drew between the tortious interference claim that survived the motion to dismiss and the one that did not.
The claims in Flores were brought by the Chapter 7 trustee of the bankruptcy estates of Esio Beverage Co., Esio Holding Co. and Esio Franchising. Esio alleged that the fraudulent and tortious scheme of Strauss Water forced Esio into bankruptcy. The relationship between Esio and Strauss had its origins in 2011, when Esio approached Strauss about a possible investment in Esio. Esio had a license to a beverage dispensing technology and Strauss had developed a specialized carbonation technology that Esio thought would fit well with its new products.
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