A leased to B a shop to be used as a public market. The lease contained a restrictive covenant by the lessor to lease no other shops for a like purpose. The lessor, however, leased to C, who was engaged in the same business as B, one of the shops so restricted. C took with knowledge of the restrictive covenant in B's lease. B, the plaintiff in this action, secured a final injunction in a New York court enjoining the use by C. Under the New York statute B could have obtained damages under the equity decree, but failed to seek them. He then brought the present action for damages in contract against A and in tort against C for maliciously inducing a breach of contract. C removed the cause to the federal court on grounds of diversity of citizenship. Held, that C should be dismissed as a defendant in the suit.