Opinion ID: 203868
Heading Depth: 2
Heading Rank: 6

Heading: Interference with Advantageous Business Relations

Text: The district court also properly granted summary judgment on count XI, in which plaintiffs claimed Sovereign tortiously interfered with advantageous business relations by: preventing FAMM from hiring a temporary comptroller from its CPA's firm; failing to respond timely to buy-out proposals and other refinancing options; and preventing FAMM from pursuing certain third-party contracts by refusing to grant FAMM a forbearance or extension after FAMM paid down part of its outstanding debt. Under Massachusetts law, plaintiffs were required to show that: (1) [they] had an advantageous relationship with a third party ...; (2) the defendant knowingly induced a breaking of the relationship; (3) the defendant's interference with the relationship, in addition to being intentional, was improper in motive or means; and (4) the plaintiff[s] [were] harmed by the defendant's actions. Blackstone v. Cashman, 448 Mass. 255, 860 N.E.2d 7, 12-13 (2007). Even assuming Sovereign by its actions knowingly interfered with FAMM's advantageous business relations, we agree with the district court that there is no evidence Sovereign's actions were improper in motive or means. Plaintiffs alleged Sovereign was motivated by a desire to close FAMM, minimize [Sovereign's] exposure and maximize the value of its credit. But the record does not establish that Sovereign acted out of any purpose beyond the legitimate advancement of its own economic interest, [and] that motive is not `improper' for purposes of tortious interference. [8] Pembroke Country Club, Inc. v. Regency Sav. Bank, F.S.B., 62 Mass. App.Ct. 34, 815 N.E.2d 241, 245-46 (2004). FAMM was in serious financial trouble and was in covenant default at least as early as February 2002, and Sovereign was attempting to protect its financial interest. Nor did Sovereign employ improper means to this end; it was not obligated to grant a forbearance or an extension or to engage in workout negotiations, and its actions were permissible under the loan agreements. See id. at 246-47. That Sovereign's decisions may have proven ill-advised, and ultimately contributed to significant losses for both FAMM and Sovereign, does not make Sovereign's actions tortious.