Legal Question in Civil Litigation in California

Let's address this by person -

With regard to person #1's actions in speaking to person #2 and your claim of defamation: Defamation requires written or oral publication of a statement of fact that is false (truth is a defense to any claim of defamation), unprivileged, has a natural tendency to injure or which causes "special damage," and the defendant's fault in publishing the statement amounted to at least negligence.

Here, you do not know what was said so you do not have any way of knowing whether any defamatory statements were made. You do appear to have special damage, in that the conversation interfered with your contractual relationship with person #2 (you stated she provided services to you, correct?); however, that alone is not enough. The mere fact that person #1 did not like you dealing with person #2 and yelled at her for that is not enough to create a cause of action, particularly for defamation. Person #1 is entitled to freedom of speech, and certainly may express an opinion about you - but if that communication involves asserting something that is untrue, that is stated as fact, and caused person #2 to discontinue your business relationship, and person #1 was at least negligent in making that statement, you may have an actionable claim for defamation.

As for person #2 opting to no longer provide you services, absent a contract requiring a certain time commitment for your business arrangement, she is free to decide to stop working with you at any time. Whether she was manipulated or not does not change her obligation (or lack thereof) to work with you, however frustrating that may be. What you really need to know is whether what was said rises to the level of defamation.

Additionally, against person #1 you may have a cause of action for interference with a contractual relationship IF you have a contract with person #2, and if you have such a contract, you may also have a cause of action for breach of contract against person #2 depending on whether that contract specifies a duration for the agreement and/or terms under which the agreement may be terminated.

Hope this helps you...