Opinion ID: 389315
Heading Depth: 2
Heading Rank: 3

Heading: Interference with Prospective Advantage.

Text: 135 It is hornbook law that the actions complained of in a claim for intentional interference with prospective advantage must be wrongful. W. Prosser, Torts, § 130 at 951 (4th ed. 1971). See Chris-Craft Industries, Inc. v. Piper Aircraft Corp., 480 F.2d 341, 360 (2d Cir.), cert. denied, 414 U.S. 910, 94 S.Ct. 231, 38 L.Ed.2d 148 (1973); A&K Railroad Materials, Inc. v. Green Bay & Western Railroad, 437 F.Supp. 636, 645-46 (E.D.Wis.1977); see Tom Olesker's Exciting World of Fashion, Inc. v. Dun & Bradstreet, Inc., 16 Ill.App.3d 709, 714, 306 N.E.2d 549, 553 (1973), rev'd on other grounds, 61 Ill.2d 129, 334 N.E.2d 160 (1975) (plaintiff claimed that malicious falsehoods in credit report prevented it from entering further dealings with potential creditors; (d)efamatory statements may in themselves give rise to a cause of action for libel or slander and, at the same time, become the means by which the (tort) of interference with prospective economic advantage (is) committed.). 10 136 In City of Rock Falls v. Chicago Title & Trust Co., 13 Ill.App.3d 359, 362-63, 300 N.E.2d 331, 333 (1973), the Appellate Court of Illinois aptly summarized the rationale for this requirement: 137 The theory of the tort of interference, it is said, is that the law draws a line beyond which no member of the community may go in intentionally intermeddling with the business affairs of others; that if acts of which complaint is made do not rest on some legitimate interest, or if there is sharp dealing or overreaching or other conduct below the behavior of fair men similarly situated, the ensuing loss should be redressed; and that line of demarcation between permissible behavior and interference reflects the ethical standards of the community. 138 Id. Because we have held that the trial court correctly found that the plaintiffs did not present sufficient evidence of such improper behavior on the part of the defendants, we must affirm as to this ground as well. 139 Furthermore, Illinois courts have consistently held that the plaintiff must allege and prove facts which demonstrate that the defendants acted with the purpose of injuring the plaintiff's expectancies. Herman v. Prudence Mutual Casualty Co., 41 Ill.2d 468, 473, 244 N.E.2d 809, 812 (1969); Crinkley v. Dow Jones & Co., 67 Ill.App.3d 869, 880, 24 Ill.Dec. 573, 584, 385 N.E.2d 714, 722 (1978); Parkway Bank & Trust Co. v. City of Darien, 43 Ill.App.3d 400, 403-04, 2 Ill.Dec. 234, 237-38, 357 N.E.2d 211, 215 (1976). As is demonstrated above, the plaintiffs have failed to provide sufficient evidence that the directors were acting out of other than good-faith motives with the well-being of the corporation foremost in their minds. The plaintiffs have thus also failed to establish this requisite element of improper intent. 140 To adopt the rule the plaintiffs seek to impose here would substantially obtenebrate the reasonableness of consideration by boards of directors of a tender offer, and is in direct conflict with the duty of directors to evaluate proposed business combinations on their merits and oppose those detrimental to the well-being of the corporation even if that is at the expense of the short term interests of individual shareholders. See Gulf & Western Industries, 476 F.2d at 698; Elco v. Microdot, Inc., 360 F.Supp. 741, 754-55 (D.Del.1973) (if an acquisition would violate the antitrust laws, the interests of shareholders in tendering their shares must yield, although barring consummation of this tender offer will deprive these stockholders of their premium, since this is a premium to which they cannot justly lay claim); cf. Kors v. Carey, 39 Del.Ch. 47, 158 A.2d 136, 140 (1960) (concern with antitrust violations evidences directors' proper discharge of fiduciary duty). In the absence of sufficient evidence that the directors acted improperly to overcome the presumption of the business judgment rule, a case cannot proceed to the jury on an interference with prospective economic opportunity theory.