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Intentional interference with prospective economic advantage california

Laguna Beach, CA |

I live in a hoa in California. We have 4 plumbing vendors who are supposed to be used on a rotational basis. One vendor is related to the hoa president. Homeowners are forced into using him and are afraid to complain when his work is substandard. This vendor has charged the hoa for work not performed and the hoa has paid for mistakes that should have been covered by his insurance. Last month, he was working on a suspended contractors license. I reported him to the ca license board.In retaliation he tried to swerve his truck at me when I walked my dogs. I filed a police report immediately. I am being sued for the above by our hoa because the vendor doesn't want to work in our community now. The hoa claims his prices are the lowest and I am liable for the rate difference in using the others.

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Attorney answers 3


Every lawyer is different. I would tell them to sue you. Tell them you will then cross claim against them for breach of fiduciary duty by the HOA president in hiring a relative and will conduct discovery on all the kickbacks the president probably received. Their legal basis for damages is also flawed in my analysis. Of course, this analysis is limied by the brief facts above and is not legal advice.

The above is general legal and business analysis. It is not "legal advise" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also terms and conditions item 9, incorporated as if it was reprinted here.


You're being sued, so you need to hire a lawyer immediately defend you.

If I were your lawyer I'd check the governing CC&Rs to see what they say about conflict of interest, and see if the president violated his fiduciary duty by hiring his relative, and possible cross-claim against the president (which will trigger the HOA's D&O insurance) as well as maybe the HOA itself (same).

"Counterweight" lawsuits give you leverage and may force the HOA to settle if they have something (a lot, perhaps) to lose. I'm guessing your CC&Rs have an attorneys' fees clause too, so you need to hire a lawyer to leverage that as well. Hire one now. A strong response may nip this dumb lawsuit in the bud, as it should be nipped.

Avvo doesn't pay us for these responses, and I'm not your lawyer just because I answer this question or respond to any follow-up comments. If you want to hire me, please contact me. Otherwise, please don't expect a further response. We need an actual written agreement to form an attorney-client relationship. I'm only licensed in CA and you shouldn't rely on this answer, since each state has different laws, each situation is fact specific, and it's impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.

Michael Charles Doland

Michael Charles Doland


I totally missed she was being sued. I thought it was the threat of being sued. Ms. Koslyn's first sentence (get a lawyer involved immediately) is critical.


I hope you have some money to hire a local atty. The info from the answers above is good. Were there any witnesses to the contractor swerving at you and the dogs? Did he get close to you? Did you actually fear he was going to hit you? You may have been assaulted by the contractor. He could possibly be charged criminally, or sued civilly. I hope you have proof in addition to your word.

You need to see a local atty right away for advice and help.

Good luck.

Robert Bruce Kopelson

Robert Bruce Kopelson


if his contractors license was suspended, he shouldnt be engaging in activity for which a license is reqd. The HOA shouldnt be using unlicensed contractors. If he srewed up and someone got hurt or there was a lot of property damage as a result, the HOA could be sued for using an unlicensed contractor. HOA rules may say only licensed contractors can be used. if the HOA shouldnt be using a contractor with a suspended license, it hasnt lost any economic advantage. Do you know why the license was suspended? Check with the licensing board. That could give you more ammunition.

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