Legal Question in Business Law in California

Re: Interference with Service Contracts

Sorry, I've been practicing business law as well as in the area of unfair competition for over 30 years. Your question is confusing but also so limited in information and specific facts that the give you an opinion on my part would constitute malpractice. Just not enough beef. Make it clear I am not soliciting your business but based on the question I cannot answer it. In this situationi have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000. I only do this because your question is intriguing. If if I am geographically desirable please contact me but if you are in Southern California I will concentrate on a Southern California attorney who has an expertise in business law as well as unfair competition. How you would find this would be contact your local Bar Association and specifically ask them for names of attorneys who fall into this category. I would likewise recommend you see at least two attorneys to get their opinions and take good notes or ask for the attorney opinion letter. This may cause some money but at the same time in the whole of the business scheme, this is just another cost of business but more importantly is minimal and doing something reasonable under the circumstance. My question is why can't the party to the contract produce the contract itself to see whether or not it is good until 2005 or some other date. I am very troubled by this.

Re: Interference with Service Contracts

In California, "C" can sue both "A" and "B." A can be sued for interference with the contract between B and C, but C must prove that A knew the contract existed, and intentionally acted to induce B to breach its agreement. B can be sued for breach of contract.

How difficult it will be for C to prevail in a lawsuit againt A depends upon the specific facts of the case. It also depends greatly on whether a contract was actually in existence between B and C. If no contract existed at the time A is alleged to have "interferred" with the contract, C cannot prevail. On the other hand, if the contract was in existence, the specific conduct of A must be evaluated to determine C's likelihood of success.

I would suggest that you contact an attorney in your area and arrange for an initial consultation to discuss the specific facts of your case. During that consultation, you should disclose all of the things A did to solicit B's business.

Re: Interference with Service Contracts

While I do not strongly disagree with the previous answer, I think it portrays your situation as a little more vulnerable to suit than you may be in reality.

California law encourages competition, and soliciting business from someone who is buying elsewhere, even if under a long-term contract, and even if you know about the contract, is not necessarily improper interference with that contract.

Your conduct is likely to be tortious interference with contract if you actively tried to induce a breach. If you merely offered to give a better deal if and when the customer could lawfully get out of his existing commitments, I would say you did nothing improper and that your action is just good competition, strongly encouraged under our laws.

People who ask questions on LawGuru usually portray their situations in the most favorable light, and it could be that your company did, in fact, tortiously interfere, but it doesn't depend necessarily upon whether the contract was expired or not, or whether it contained loopholes or not. The issue is probably going to boil down to whether you knowingly attempted to induce a breach.

Based on your ZIP code, I may be nearby, and I would be pleased to consult with you further if this remains a problem for your company.