Lowell v. Mother's Cake & Cookie Co.
Court of Appeal of California
144 Cal. Rptr. 664 (1978)
Fred Lowell (plaintiff), sole owner of Lowell Freight Lines, Inc., had performed delivery services for Mother's Cake & Cookie Company (MCCC) (defendant) for over five years, generating about 40 percent of the company's income; when Lowell sought to sell his company, a prospective $200,000 buyer conditioned the offer on maintaining the MCCC relationship, but MCCC told the buyer the contract would terminate if Lowell sold, causing that offer and others to collapse, after which MCCC itself bought the company for just $17,400. Lowell sued MCCC for intentional interference with prospective business advantage, alleging MCCC intended to drive down the sale price to acquire the company itself; the trial court dismissed the complaint on the theory MCCC's interference was justified, and Lowell appealed.
Whether a complaint for intentional interference with prospective business advantage can be dismissed for failure to state a claim, based on the defendant's justification or privilege, unless the facts alleged in the complaint show justification or privilege on their face.