As with most legal questions, the answer is it depends. Generally, free competition between businesses is allowed. However, certain things are considered to be unfair or illegal and might not be allowed by the law. In this blog post, we will discuss one such situation.
What are the elements for a claim for interference with prospective economic advantage?
To establish a claim for interference with prospective economic advantage a party must allege (and later prove at trial):
“(1) an economic relationship between the plaintiff and some third party, with the probability of future economic benefit to the plaintiff; (2) the defendant’s knowledge of the relationship; (3) intentional acts on the part of the defendant designed to disrupt the relationship; (4) actual disruption of the relationship; and (5) economic harm to the plaintiff proximately caused by the acts of the defendant.” Youst v. Longo, (1987) 43 Cal.3d 64, 71.
Please note that depending on the time you read this note, this case law might have changed and it will not be updated. To get up to date legal advice, an attorney should be consulted based on your specific facts and the current case law, which changes over time.
