Settimo Associates v. Environ Systems, Inc.

Opinion

WORK, J.

Settimo Associates (Settimo) appeals a judgment on the pleadings in favor of Environ Systems, Inc., Otto F. Newton, Site Preparation, Inc., and Developers Insurance Co. (collectively Environ) on Settimo’s complaint for intentional or negligent interference with prospective economic advantage. Settimo contends the court erred in determining that Environ’s bidding on private contracts for work outside the scope of its specialty license did not give rise to a tort claim in favor of competing bidders who were properly licensed. For the following reasons, we affirm the judgment.

Factual and Procedural Background

Settimo, holder of a general B-l contractor’s license, sued Environ, alleging alternative causes of action for intentional or negligent interference with prospective economic advantage.

1

Settimo complained that it had twice submitted the lowest bid by any duly licensed contractor for installing a computer support facility only to lose each contract to Environ which held only a specialty contractor’s license which was not sufficient for some of the work involved, but which submitted lower bids. Settimo asserts Environ’s lack of a general contracting license alone satisfies the element of unlawful contract interference so that Environ should reimburse its lost profits.

At the outset of trial, Environ objected to the introduction of all evidence alleging the complaint was fatally defective. Settimo does not allege Environ was unqualified to perform all work contemplated by the contracts, nor that the work was not properly completed.

2

The trial court treated this as a motion for judgment on the pleadings (see

Clemens

v.

American Warranty Corp.

(1987) 193 Cal.App.3d 444, 451 [238 Cal.Rptr. 339]), granted the motion, and entered judgment for Environ.

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