B-22 APPENDIX B: ALTERNATE CASE PROBLEM ANSWERS—CHAPTER 6
regulations by posting a warning that the patient possessed an infectious disease is a critical factor in
6-3A. Wrongful interference
(Chapter 6—Pages 124–126)
The Supreme Court of California held that there had been no disruption of the PG&E–Agency contract as
a result of Bear Stearns’ activities. Bear Stearns was assisting Agency in obtaining a legal determination
as to whether Agency could legally terminate its contract with PG&E under the contract’s own terms,
not inducing Agency to breach the contract. The essential question before the court was thus whether
inducing a third party to bring litigation on a colorable claim could be the basis for tort liability for
wrongful interference with a contractual relationship. A deciding factor in the court’s decision was the
constitutional right of free access to the courts. Agency, with Bear Stearns’ assistance, wished to
petition the court for a judicial determination of its rights under its contract with PG&E. This, the court
determined, Agency had a constitutional right to do. But did a third party, such as Bear Stearns, have a
right to induce Agency to submit such a petition? The court held that it did. In the court’s view, there
6-4A. Wrongful interference
(Chapter 6—Pages 124–126)
No. According to the court, American’s refusal to approve the sale of the shopping center to the Hall
Corp. did not constitute wrongful interference with a business relationship, nor did American breach its