About This Blog

Summaries and analysis of recent Delaware court decisions concerning business-related litigation.

Morris James Blogs

Links

Superior Court Denies Defendant's Motion to Dismiss and Motion for a More Definite Statement in Breach of Contract Case

Spanish Tiles, Ltd. v. Hensey, C.A. No. 05C-07-025 RFS, 2005 WL 3981740 (Del. Super. Ct. March 30, 2006). Plaintiff Spantis Tiles, Ltd. D/b/a Terra Tile and Marble ("Terra Tiles") and Plaintiff Steel Buildings, Inc. d/b/a Northern Steel buildings, Inc. ("NSB") brought an action against Kurt and Ken Hensey (the "Henseys") for breach of contract, tortious interference with contracts and prospective contracts, violation of the Deceptive Trade Practices Act, common law fraud, unlawful practice and defamation. The defendant moved to dismiss for failure to state a claim and moved for a more definite statement. The court denied both motions. Jose Hudson, the owner of NSB, became an equal partner with the Henseys in Northern Steel Commercial Systems, Inc. ("NSCS"). This entity was to sell and deliver commercial warehouses for NSB. NSB entered into a contract to deliver a steel warehouse to Terra Tiles. However, Hudson and the Henseys had a disagreement, and Mr. Hudson was removed as a partner in NSCS. As NSCS was winding down, the partners divided clients between NSB and the Henseys. The Terra Tile contract was supposed to go to the Henseys. Apparently unaware of the breakup between Hudson and the Henseys, Terra Tile sent the Henseys $72,793.75 as a deposit for the warehouse. The Henseys neither returned the money nor did they build the warehouse. Subsequently, the plaintiffs sued for breach of contract, tortious interference with contracts and prospective contracts, violation of the Deceptive Trade Practices Act, common law fraud, unlawful practice and defamation. The Henseys moved to dismiss for failure to state a claim and moved for a more definite statement. The court denied both motions. Authored by: Jason C. Jowers 302-888-6860 jjowers@morrisjames.com