C.R. Eng. v. Swift Transp. Co.

437 P.3d 343
CourtUtah Supreme Court
DecidedFebruary 27, 2019
DocketNo. 20170561
StatusPublished
Cited by47 cases

This text of 437 P.3d 343 (C.R. Eng. v. Swift Transp. Co.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C.R. Eng. v. Swift Transp. Co., 437 P.3d 343 (Utah 2019).

Opinion

Chief Justice Durrant, opinion of the Court:

*344Introduction

¶1 In this case1 we are asked to interpret, and ultimately overturn, a rule we established in St. Benedict's Development Co. v. St. Benedict's Hospital .2 In St. Benedict's we held that to prevail on a claim for intentional interference with contract, the plaintiff must show that the defendant interfered through "improper means."3 C.R. England, Inc. (England) argues that St. Benedict's was wrongly decided and should, therefore, be overruled.

¶2 In so arguing, England asserts that the factors for overruling precedent we established in Eldridge v. Johndrow4 -(1) the persuasiveness of the authority and (2) how firmly the precedent has become established in law-weigh in England's favor. We disagree. Because the "improper means" element has become firmly embedded in Utah law since St. Benedict's was decided, and because it remains a good rule, we decline to overturn it.

¶3 Additionally, we are asked to clarify what constitutes improper means for the purposes of a claim for intentional interference with contract. In Leigh , we explained that the element of "improper means is satisfied where the means used to interfere with a party's economic relations are contrary to law, such as violations of statutes, regulations, or recognized common-law rules," or if "they violate an established standard of a trade or profession."5 And in St. Benedict's we applied this definition of improper means to claims involving existing contracts.6 We reaffirm this definition7 and clarify that to constitute an "established standard of a trade or profession," the standard or rule must be an objective one accepted throughout the relevant industry.

Background8

¶4 England is a trucking company. As part of its business, it trains and hires individuals to work as truck drivers. To protect its investment in training individuals to work as truck drivers, England enters into employment contracts wherein the truck drivers agree to work exclusively for England for a nine-month period.9 England alleges that it has previously provided notice of these *345agreements to other trucking companies, and that it also provides notice on an ongoing basis when competing companies seek to hire England drivers who are still within the nine-month period.

¶5 Swift Transportation Company (Swift) is also a trucking company. England alleges that Swift regularly and knowingly induces England's truck drivers to breach their employment contracts with England by offering higher wages and better benefits.

¶6 In response to this activity, England filed suit against Swift, alleging that Swift intentionally interfered with England's contracts with its employees. Swift filed a motion for summary judgment against England on the ground that England failed to provide proof of "improper means"-an allegedly essential element of the tort-to support its claim.10 In its opposition, England argued that "improper means" is not an element of the tort of intentional interference with contract in Utah. Instead, it maintained that it must prove only that (1) Swift had knowledge of England's employment agreements with its truck drivers, (2) Swift recruited the drivers, (3) the drivers went to work with Swift, and (4) England suffered damages as a result, unless the "action causing the breach was done with just cause of excuse."11

¶7 Noting conflicting holdings in the federal district court of Utah regarding the elements of the tort of intentional interference with contract, the federal court requested supplemental briefing from the parties. Upon reviewing the briefing, the court concluded that there appears to be no "clear, controlling Utah law" regarding whether "improper means" is required as part of the tort. Additionally, the court concluded that if improper means is required, there is no clear law regarding what would constitute improper means.

Standard of Review

¶8 This case comes to us by certified question from the federal district court. "A certified question from the federal district court does not present us with a decision to affirm or reverse a lower court's decision; as such, traditional standards of review do not apply."12 Instead, we merely answer the question presented without resolving the underlying dispute.13 We have jurisdiction pursuant to Utah Code section 78A-3-102(1) and article VIII, section 3 of the Utah Constitution.

Analysis

¶9 This case requires us to answer two questions. First, does the tort of intentional interference with contract require proof of "improper means"? And second, if it is required, what constitutes "improper means" in the context of tortious interference with contract?

¶10 England argues that the elements of the tort of intentional interference with contract come from our opinion in Bunnell v. Bills .14 In Bunnell , we adopted the rule that "one who persuades another or conspires with another to breach a contract is guilty of an actionable tort, unless such persuasion or other action causing the breach was done with just cause of excuse."15 England argues that this should still be the law in Utah, and, to the extent subsequent cases have stated a different rule, we should overrule them under the factors for overturning precedent we articulated in Eldridge v. Johndrow .16

¶11 Swift, on the other hand, argues that our decisions in *346Leigh Furniture & Carpet Co. v. Isom17 and St. Benedict's Development Co. v. St. Benedict's Hospital18 govern. According to Swift, Leigh established a three-part test for the tort of intentional interference with economic relations, which includes interference with both existing and prospective contracts. We agree with Swift.

¶12 Although the court in Leigh did not clearly state whether its three-part test applied to the tort of intentional interference with contract, the court in St. Benedict's later interpreted Leigh as having done so.19 And following St. Benedict's , Utah courts have regularly stated that the element of "improper means" is part of the prima facie case for intentional interference with contracts.20 Because the rule established in St. Benedict's has become firmly established in Utah caselaw, and the reasoning behind it remains persuasive, we decline to overturn it.

I. We Decline to Overturn St. Benedict's and We Hold that "Improper Means" is an Element of the Tort of Intentional Interference with Contract

¶13 We first consider whether "improper means" is an element of the tort of intentional interference with contract. England argues that we should disavow any language from our decision in St. Benedict's Development Co. v.

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Bluebook (online)
437 P.3d 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cr-eng-v-swift-transp-co-utah-2019.