Marin Tug & Barge, Inc. v. Westport Petroleum, Inc.

Jeffrey and Susan Mudgett (the “Mud-getts”) appeal the district court’s grant of summary judgment against them in their action for intentional interference with prospective economic advantage. We affirm.

*827 I.

Background

At the time the events underlying this case occurred, the Mudgetts were the owners and operators of Marin Tug and Barge, Inc., a small barge company that transports petroleum products in and around the San Francisco Bay. This litigation arises from Shell Oil’s contamination of one of Marin Tug’s barges, the Marin Tenor. The Tenor moved “bunker fuel,” i.e., oil used in fueling ships’ engines, to waiting ships. Because the diesel engines that power the receiving ships are highly sensitive to abrasives, bunker fuel must meet certain specifications regarding aluminum and silicon oxide content. (Aluminum and silicon oxide are used as catalysts in the refining process.)

Pursuant to a contract between Marin Tug and fuel broker Westport Petroleum, the Tenor was loaded with marine fuel oil at Shell’s Martinez refinery. It turned out that there were large amounts of alumina and silica in Shell’s delivery line. The oil loaded onto the Tenor was substandard, or…