Torts Keyed to Dobbs
Alyeska Pipeline Service Co. v. Aurora Air Services
Alyeska contracted with RCA to provide a communications system in connection with a pipeline in which the company was involved. RCA in turn contracted with the Appellee for use of an aircraft, pilot and parts and services to be used along the pipeline. Alyeska then had a dispute with the Appellee and the former exercised an option to take over the flight operation, thus, constructively terminating the Appellee’s contract. The Appellee sued, claiming Alyeska induced breach of contract. Alyeska moved for summary judgment, which the trial court denied. The court held that although Alyeska could terminate its contract with RCA – indirectly terminating the Appellee’s contract – it could not do so in bad faith. A jury found for the Appellee and Alyeska appealed.
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