Colorado § 7-56-504 - Inducing breach of marketing or purchasing contract.

§ 7-56-504. Inducing breach of marketing or purchasing contract.

Any person who knowingly induces any member of an agricultural cooperative formed under this article, or under similar statutes of another jurisdiction with similar restrictions and rights and operating in this state, to break the member's marketing or purchasing contract or agreement with the cooperative shall be subject to all available civil remedies, including but not limited to injunctive relief.

Source: L. 96: Entire article R&RE, p. 511, § 1, effective July 1. L. 2003: Entire section amended, p. 2228, § 89, effective July 1, 2004. L. 2004: Entire section amended, p. 1414, § 51, effective July 1.

Editor's note: This section is similar to former § 7-56-128 as it existed prior to 1996.

ANNOTATION

Annotator's note. Since § 7-56-504 is similar to § 7-56-128 as it existed prior to the 1996 repeal and reenactment of this article, relevant cases construing that provision have been included in the annotations to this section.

The intent to protect cooperative marketing associations against unlawful interference is clear, and this section is intended to cover just such situations. Rinnander v. Denver Milk Producers, 114 Colo. 506, 116 P.2d 984 (1946).

For one who carries on a lawful business has a property right therein and is entitled to protection against unlawful interference with that right. Fort v. Coop. Farmers' Exch., 81 Colo. 431, 256 P. 319 (1927).

The provision as to liability in a civil suit in a penal sum is deemed a civil statute. Rinnander v. Denver Milk Producers, 114 Colo. 506, 166 P.2d 984 (1946).

And thus this provision is not to be strictly construed. Rinnander v. Denver Milk Producers, 114 Colo. 506, 166 P.2d 984 (1946).

Such interference is actionable civilly. The general assembly has power to make solicitation from, and interference with, members of a cooperative marketing association by another actionable civilly. Fort v. Coop. Farmers' Exch., 81 Colo. 431, 256 P. 319 (1927).

And may be restrained by court order. Knowingly to induce or to attempt to induce a member of a cooperative marketing association to break his marketing contract with the association is a misdemeanor, and being an unlawful interference such act may be restrained by order of court. Fort v. People ex rel. Coop. Farmers' Exch., 81 Colo. 420, 256 P. 325 (1927); Fort v. Coop. Farmers' Exch., 81 Colo. 431, 256 P. 319 (1927).

Where facts reveal that one "knowingly" induces an association member to breach his contract, the association is entitled to recover. Rinnander v. Denver Milk Producers, 114 Colo. 506, 166 P.2d 984 (1946).

Furthermore, one may not escape liability on ground he is not an association member. One may not knowingly and designedly join in an attempt to breach a marketing contract and escape liability on the grounds that he is not a member of the association and not a party to the contract. Monte Vista Potato Growers' Coop. Ass'n v. Bond, 80 Colo. 516, 252 P. 813 (1927).