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Imperial Ice Co. v. Rossier | 112 P.2d 631 (Cal. 1941)
A business supplying ice encouraged a customer to breach a contract and received a chilly reception in court in Imperial Ice Company versus Rossier.
S. L. Coker sold his ice-distributing business to California Consumers Company. The sale included the business’s goodwill, meaning the company’s contacts and relationships. In the contract, Coker promised not to sell or distribute ice in the business’s territory for as long as California Consumers sold ice. Further, the contract extended this prohibition if someone else acquired the title of the business’s goodwill.
Then, Imperial Ice Company bought the business, including the goodwill. Coker began selling ice in his old territory, which was the territory of the business that Imperial now owned. Coker purchased his ice from another company owned in part by Wayne Rossier.
Imperial sued Coker, Rossier, and the co-owners of Rossier’s business. The complaint alleged that Rossier had induced Coker’s breach of contract to make a profit. Imperial wanted the court to order Rossier to stop inducing Coker’s breach. Rossier demurred, meaning he objected to Imperial’s complaint. The court sustained the objection and awarded judgment for Rossier. Imperial appealed to the California Supreme Court, arguing that it had a claim for inducing breach of contract.
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