Los Angeles Airways, Inc. v. Davis
United States Court of Appeals for the Ninth Circuit
687 F.2d 321 (1982)
- Written by Sharon Feldman, JD
Facts
Chester Davis (defendant) was general counsel for Summa Corporation (Summa), an attorney for Howard Hughes and Hughes Air Corporation (Hughes Air), and an officer and director of Hughes Air. Summa and Hughes Air breached an agreement with Los Angeles Airways, Inc. (LAA) (plaintiff) to purchase LAA’s assets and liabilities. LAA sued Davis for tortious interference with contractual relations. Davis claimed that if he did induce a breach of the agreement, he was privileged to do so as the attorney for Summa, Hughes Air, and Hughes; an officer, director, or agent of Summa and Hughes Air; and an agent of Hughes. The district court granted Davis summary judgment. LAA argued on appeal that Davis was not privileged to induce the breach because his purpose was not just to benefit Hughes by permitting the purchase of LAA’s assets at liquidation prices but to elevate Davis’s position in the Hughes companies by undermining another executive’s position.
Rule of Law
Issue
Holding and Reasoning (Reinhardt, J.)
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