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BUSINESS AND PROFESSIONAL CODE SECTION 17200

-- Korea Supply Co. v. Lockheed Martin Corp. (2003) 29 Cal. 4th 1134

Lockheed succeeded in winning a lucrative contract with the Korean government by bribing key government officials. Plaintiff claimed that but for these unlawful activities, the contract would have been awarded to a different company, and Plaintiff would have earned a $30 million commission. Based on these allegations, Plaintiff sued Lockheed claiming Lockheed engaged in unfair business practices under business and Professions Code § 17200 et seq.; and alleged interference with prospective economic advantage.

Two questions were presented:

  1. Whether disgorgement of profits was an available remedy under Business and Professions code § 17200 when profits were not taken from plaintiff or funds which plaintiff had an ownership interest;
  2. Whether a plaintiff must allege, to state a claim for interference with prospective economic advantage, that defendant specifically intended to interfere.

Holding: Non-restitutionary disgorgement of profits is not an available remedy under Business and professions Code section 17200; claim of interference with prospective economic advantage does not require specific intent.