Bed, Bath & Beyond of La Jolla, Inc. v. La Jolla Village Square Venture Partners

Plaintiff Bed, Bath & Beyond of La Jolla, Inc., negotiated for a lease of retail space in a shopping center owned by La Jolla Village Square Venture Partners. The negotiated terms of the lease were reduced to a written agreement which was signed by plaintiff but never by La Jolla. Instead, La Jolla leased the subject premises for higher rent than that negotiated by plaintiff to defendant Linens ’N Things, Inc., a retail business in direct competition with plaintiff. Plaintiff filed an action against La Jolla and Linens ’N Things, asserting causes of action for specific performance, breach of contract and fraud against La Jolla and causes of action for interference with contractual relations and prospective economic advantage against Linens ’N Things. The court granted summary adjudication against plaintiff on each of its causes of action except the one for fraud, concluding the alleged lease agreement was within the statute of frauds and Linens ’N Things’ “fair competition” privilege was a complete defense to plaintiff’s claim for interference with prospective economic advantage. Plaintiff later voluntarily dismissed its fraud cause of action.

On appeal plaintiff…