Boyle

It is settled that interference with an unenforceable contract may give rise to liability in tort for interference with prospective economic advantage. This case demonstrates a qualification of that rule. If a contract is unenforceable because it is illegal, it cannot give rise to a claim for interference with prospective economic advantage.

The law firm of Cappiello, Hofmann & Katz, P.C. (Cappiello) sued the law firm of Boyle, Berschler, Moline and Allison, as well as the individual members of the Boyle firm (collectively, Boyle). Cappiello alleged that Boyle had intentionally interfered with its prospective economic relationships with 12 clients, by improperly and successfully soliciting those clients' business. Cappiello had obtained written contingency agreements from these clients, but on a motion for summary adjudication the court found the contracts unenforceable. Cappiello had never registered as a law corporation with the State Bar. Its principal attorney in California testified that he first learned of the registration requirement during pretrial proceedings. Although he had obtained the necessary paperwork by the time of trial, it was never submitted to…