Lumley v Gye [1853]

Court: Queen’s Bench (EWHC)

Facts: Johanna Wagner was contracted by Benjamin Lumley to perform exclusively at Her Majesty's Theatre for three months. Frederick Gye, the manager of Covent Garden Theatre, persuaded Wagner to breach her contract by offering her higher pay. Despite an injunction preventing Wagner from performing elsewhere, Gye convinced her to disregard it. Lumley sued Gye for damages to recover the income lost due to the contract breach.

Held: Lumley was entitled to claim damages from Gye. The court held that while there is generally no action for inducing a breach of contract, an exception exists when someone maliciously interferes with a contractual relationship, causing harm. The case established that a third party can be liable for economic losses resulting from inducing a breach of contract.

Key Judicial Statement: Crompton J remarked, "Where a person wrongfully and maliciously interferes with the contractual relationship between parties, the law provides a remedy for the injured party."

💡LevelUpLaw: This case laid the foundation for the economic tort of inducing a breach of contract, shaping English tort law