SCEcorp

This case arises out of an agreement of merger between San Diego Gas & Electric Company (SDG&E) and Tucson Electric Power Company (Tucson) which was entered into on June 11, 1988. Tucson alleges this merger was not effected because of tortious interference by SCEcorp and Southern California Edison Company (SCE). In its amended complaint against SCE, Tucson states three causes of action arising out of the alleged actions by SCE: (1) intentional interference with contractual relations, (2) negligent interference with contractual relations, and (3) intentional interference with prospective economic advantage. SCE filed a demurrer to these causes of action, claiming that, as a matter of law, no such claims can be made because the merger was subject to regulatory approval and no such approval had been received at the time of its alleged interference. We disagree with SCE’s position, and accordingly we deny its petition for peremptory writs of mandate, prohibition, and review.

Issue

As a matter of law, should a cause of action be denied for tortious interference with a merger agreement between two energy utility companies where regulatory approval is a condition precedent to…