Lowell v. Mother's Cake & Cookie Co

In Lowell v. Mother's Cake & Cookie Co. (1978) 79 Cal. App. 3d 13, the plaintiff was the owner of a trucking company which derived 40 percent of its business from defendant. When he attempted to sell the company to a third party, defendant "intentionally interfered with the consummation of the sale by informing the prospective purchasers that the delivery contract would be terminated if the Company was sold to a third person" and the evidence showed that "the purpose of the interference was to discourage potential buyers from purchasing the Company from plaintiff and thereby depress its purchase price substantially below its market value." ( Lowell v. Mother's Cake & Cookie Co., supra, 79 Cal. App. 3d at p. 19.) Truth was not raised as a defense in Lowell, and the court stated the then generally accepted view that "even if the means used by the defendant are entirely lawful, intentional interference with prospective economic advantage constitutes actionable wrong if it results in damages to the plaintiff, and the defendant's conduct is not excused by a legally recognized privilege or justification ." ( Id. at p. 20, )