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Alyeska Pipeline Service Co. v. Aurora Air Service, Inc.

Alaska Supreme Court

604 P.2d 1090 (1979)

Facts

Aurora Air Service, Inc. (Aurora) (plaintiff) provided air service to Alyeska Pipeline Service Co. (Alyeska) (defendant). Aurora sued Alyeska over a payment dispute. Subsequently, Radio Corporation of America (RCA) contracted with Alyeska to construct and operate a communications system. RCA engaged Aurora to furnish the air transportation. The RCA-Aurora contract gave RCA the option to terminate the agreement. Relying on a contractual provision permitting Alyeska to change RCA’s work, Alyeska elected to provide its own air transportation. In response, RCA exercised its option to terminate the contract with Aurora. Aurora sued Alyeska for interfering with its contractual relationship with RCA by taking over the air-transportation service. Alyeska’s summary-judgment motion was denied. The jury found for Aurora. On appeal, Alyeska claimed that the privilege arising from its contractual right to take over the air-transportation function was absolute regardless of motive and, alternatively, that its economic and safety interests justified its conduct.

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Holding and Reasoning (Connor, J.)

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