Eldridge v. Johndrow

2015 UT 21, 345 P.3d 553, 2015 Utah LEXIS 67, 779 Utah Adv. Rep. 112, 2015 WL 404491
CourtUtah Supreme Court
DecidedJanuary 30, 2015
Docket20130263
StatusPublished
Cited by143 cases

This text of 2015 UT 21 (Eldridge v. Johndrow) 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
Eldridge v. Johndrow, 2015 UT 21, 345 P.3d 553, 2015 Utah LEXIS 67, 779 Utah Adv. Rep. 112, 2015 WL 404491 (Utah 2015).

Opinion

Justice DURHAM,

opinion of the Court:

INTRODUCTION

1 1 This appeal concerns claims for tortious interference with economic relations by Joseph and Lindsey Eldridge against David Johndrow. Johndrow moved for summary judgment, and the district court partially granted his motion, concluding there was no evidence that he had interfered with the Eldridges' economic relations through an improper means. But the court denied sum *555 mary judgment for the Eldridges' claims based on the allegation that Johndrow had acted with an improper purpose.

{2 According to our decision in Leigh Furniture & Carpet Co. v. Isom, "improper purpose ... will support a cause of action for intentional interference with prospective economic relations even where the defendant's means were proper." 657 P.2d 293, 307 (Utah 1982). Leigh Furniture recognized, however, that this doctrine posed risks. There are "[plroblems inherent in proving motivation or purpose," and if juries were allowed to find improper purposes too easily, it would result in tort liability for much legitimate "competitive commercial activity." Id. We therefore sought to cireumseribe the doe-trine by allowing improper-purpose lability only where "the improper purpose predominate[s]" and by counseling that it would usually be "prudent" not to apply the doctrine to "commercial conduct." Id.

T3 Unfortunately, as the few subsequent cases allowing improper-purpose liability demonstrate, our efforts to cireumseribe the doctrine have failed. Infro ¶¶ 46-50. Because of this failure, little law exists to guide juries' improper-purpose findings or to inform private parties of their legal rights and obligations. Infra ¶¶ 51-54. Consequently, if improper-purpose claims became commonplace, their unpredictable nature would deter much socially beneficial speech and conduct.

T4 We could attempt to ameliorate this lawlessness by further refining the improper-purpose doctrine; for example, we could establish safe harbors like the Restatement's rule that the communication of truthful information never constitutes tortious interference. See RestatemEnt (SEconp) or Torts § 772(a) (1979). But we are persuaded that the doctrine's flaws warrant not repair but rejection. We therefore hold that no tortious interference claim can succeed without evidence of improper means.

BACKGROUND 1

T5 Appellees Joseph and Lindsey El-dridge are the owners and operators of Harrison Companies, LLC, and Harrison Companies Property Management, LLC. Through these limited liability companies, the Eldridges manage residential property and provide various other services for wealthy homeowners in Summit County. Because providing these services means taking responsibility for clients' homes, the El-dridges' success depends a great deal on their reputation.

T 6 Appellant David Johndrow is a former friend and client of the Eldridges who used to recommend their services to his friends and other associates in the area. But the friendship lasted only a year. Lindsey El-dridge accused Mr. Johndrow of attacking her at a restaurant, and Mr. Johndrow accused the Eldridges of spreading false rumors and stealing his mobile phone. The once amicable relationship gave way to threats of legal action.

17 The action Johndrow actually took, however, did not involve a lawsuit. Instead, he "turned [the matter] over" to an "investigative team," which discovered various embarrassing facts about the Eldridges: liens, a foreclosure, an old felony conviction, and unflattering news reports from before they moved to Utah. Mr. Johndrow threatened that if the Eldridges refused to retract their accusations and compensate him for the allegedly stolen phone, he would have to protect his "credibility" by revealing what he had found to the people to whom he had recommended the Eldridges. When the El-dridges did not accede to his demands, he emailed embarrassing information to "at least nine" of the Eldridges' institutional clients and communicated it verbally to a number of their individual clients.

18 The Eldridges sued, asserting several theories of liability: tortious interference with economic relations, tortious interference with prospective economic relations, defamation, false light, and intentional infliction of emotional distress. The tortious interference theories each rested on two separate allegations: first, that by defaming the Eldridges, *556 Mr. Johndrow had interfered with their economic relations through an improper means; and second, that because Mr. Johndrow's only goal was to hurt the Eldridges' business, he had interfered with their economic relations in pursuit of an improper purpose. 2

T9 After preliminary discovery, Mr. John-drow moved for summary judgment on the tortious interference claims, the defamation claim, and the false light claim. The district court concluded that the information John-drow had disseminated was "at least substantially true" and "not susceptible to a defamatory interpretation." It therefore granted summary judgment on the defamation and false light claims. Further, because the "improper means" basis for tortious interference liability depended on Johndrow's alleged defamation of the Eldridges, the court granted summary judgment on the tortious interference claims insofar as they were based on improper means.

110 However, the district court denied summary judgment on the tortious interference claims insofar as they were based on allegations of improper purpose. Mr. John-drow had argued that the court should follow the Restatement and hold that the communication of "truthful information," regardless of purpose, cannot constitute tortious interference. REstaATEMENT (SEconp) or Torts § 772(a) (1979). But the court relied on our decision in Pratt v. Prodata, Inc., which explicitly rejected the Restatement's truth defense in the context of improper-purpose claims. 885 P.2d 786, 790 (Utah 1994). Correctly concluding that the reconsideration of Pratt was a matter for a higher tribunal, the court denied summary judgment with respect to the Eldridges' improper-purpose claims.

111 Mr. Johndrow filed an interlocutory appeal, and we reverse.

STANDARD OF REVIEW

112 Denials of summary judgment are reviewed for correctness. Glenn v. Reese, 2009 UT 80, ¶ 6, 225 P.3d 185.

ANALYSIS

{13 The Eldridges' remaining tortious interference claims depend on the allegation that Mr. Johndrow interfered with their economic relations for an improper purpose. This improper-purpose doctrine was adopted in Leigh Furniture & Carpet Co. v. Isom: "[IJn order to recover damages [for tortious interference], the plaintiff must prove (1) that the defendant intentionally interfered with the plaintiff's existing or potential economic relations, (2) for an improper purpose or by improper means, (8) causing injury to the plaintiff." 657 P.2d 293, 304 (1982) (emphasis added).

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Bluebook (online)
2015 UT 21, 345 P.3d 553, 2015 Utah LEXIS 67, 779 Utah Adv. Rep. 112, 2015 WL 404491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eldridge-v-johndrow-utah-2015.