Kronos, Inc. v. AVX Corp

In Kronos, Inc. v AVX Corp., 81 NY2d 90 [1993] the claim did not accrue on the date that the contract was breached, which was when the plaintiff's contracting party made another contract with a third party, at the urging of the defendant. Despite the breach, the plaintiff was not injured, as the plaintiff's contracting party continued to honor the financial terms of the contract with the plaintiff by making payments. The injury to the plaintiff occurred and the tortious interference claim accrued when the plaintiff's contracting party ceased making payments under its contract with plaintiff. It was then that the plaintiff could allege all of the elements of the tortious interference tort (id. at 97). The Court stated the elements necessary to maintain a claim for tortious interference with contract. These elements are: (1) the existence of a contract between plaintiff and a third party; (2) defendant's knowledge of the contract; (3) defendant's intentional inducement of the third party to breach or otherwise render performance impossible; (4) damages to plaintiff. The court held that a claim for interference with contract does not necessarily accrue on the date that the underlying contract was breached. The court reasoned that the plaintiff in Kronos was not injured at the time of breach because the contracting party continued to honor the financial terms of the contract with the plaintiff by continuing to make payments. The court held instead that the injury to the plaintiff occurred, and the tortious interference claim accrued when the defendant ceased making payments under the contract with plaintiff. It was only then that the plaintiff could allege all of the elements of the tortious interference.