Stevenson Real Estate Services, Inc. v. CB Richard Ellis, Inc. (April 26, 2006) 2006 WL 1086229

Licensed real estate brokers brought interference with prospective economic advantage action against other brokers, alleging defendants violated the rules the Rules of Professional Conduct of the American Industrial Real Estate Association. One of the rules prohibits an "Associate from inserting himself or herself into a transaction or potential transaction initiated by another Associate"

One of the tricky elements of a cause of action for intentional interference with economic advantage is that the plaintiff must allege that the defendant's conduct was "wrongful by some measure beyond the fact of interference itself." Courts had held that "an act is independently wrongful if it is proscribed by some constitutional, statutory, regulatory, common law, or other determinable legal standard." Although other states have ruled that interference with prospective economic advantage could be based non-governmental standards, no California court had ruled whether or not association rules can constitute a "determinable legal standard." The trial court ruled that they could not and dismissed the case. The appellate court ruled that they could, but cautioned that a decision would have to be made on a case-by-case basis. The decision should depend on whether the particular standard alleged to be violated is for the protection of consumers and not just association members.