Opinion ID: 75782
Heading Depth: 2
Heading Rank: 2

Heading: State Law Claim for Tortious Interference

Text: 78 In addition to arguing Allgas violated the Robinson-Patman Act by lowering the residential price of its propane gas to 50¢ per gallon, the Baileys also contend the price reduction unlawfully induced its potential customers to purchase propane gas from Allgas rather than Bailey's Propane Gas. As a result, the Baileys assert a claim for tortious interference with contractual or business relationships. 79 The tort of intentional interference with business or contractual relations requires: (1) the existence of a contract or business relation; (2) the defendant's knowledge of the contract or business relation; (3) intentional interference by the defendant with the contract or business relation; (4) absence of justification for the defendant's interference; and, (5) damage to the plaintiff as a result of the defendant's interference. Gross v. Lowder Realty Better Homes & Gardens, 494 So.2d 590, 597 (Ala.1986). As noted in Gross, the fourth element of a claim for tortious interference with business relations, the absence of justification, actually relates to an affirmative defense to be pleaded and proved by the defendant. Id. at 597 n. 3. Legitimate business competition qualifies as justification for intentional interference with a rival's business. Soap Co. v. Ecolab, Inc., 646 So.2d 1366, 1369 (Ala.1994) (`One's privilege to engage in business and to compete with others implies a privilege to induce third persons to do their business with him rather than with his competitors. In order not to hamper competition unduly, the rule stated in this Section entitles one not only to seek to divert business from his competitors generally but also from a particular competitor. And he may seek to do so directly by express inducement as well as indirectly by attractive offers of his own goods or services.') (quoting Restatement (Second) of Torts, § 768 (1977)). 80 In response to the Bailey's claim for tortious interference, Allgas raised the defense of justification. Allgas produced evidence that, in regard to the matters in dispute, it was attempting to protect its own clients from being lured away by Bailey's Propane Gas. Allgas also lowered its price to prevent defection by its drivers, who fostered the closest relationships with its customers. 27 Thus, because Allgas produced evidence it was engaging in legitimate business competition, the burden shifted to the Baileys to show a genuine issue of material fact existed. 81 In response to Allgas' justification defense, the Baileys assert Allgas did not engage in legitimate business competition because the company violated the Robinson-Patman Act when it reduced the price of its residential propane gas. As discussed supra, however, the Baileys have failed to set forth sufficient evidence upon which a jury could find Allgas violated the Robinson-Patman Act. Likewise, the Baileys have failed to set forth sufficient evidence disputing Allgas' evidence of legitimate business competition; that is, the Baileys have failed to submit sufficient evidence upon which a jury could find absence of justification. The district court, therefore, correctly granted summary judgment in favor of Allgas on the Bailey's tortious interference claim. See generally Bridgeway Communications, Inc. v. Trio Broad., Inc., 562 So.2d 222 (Ala.1990) (granting summary judgment in favor of defendant where the plaintiff failed to demonstrate a genuine issue of material fact disputing the existence of legitimate business competition).