Coatings Resource Corp. v. Akzo Nobel Coatings, Inc.

MEMORANDUM *

Coatings Resources Corporation appeals from the grant of summary judgment in favor of Akzo Nobel Coatings, Inc. The district court ruled that Akzo did not violate California statutory and common law when it successfully bid for an account with Travis Industries Inc. We have jurisdiction pursuant to 28 U.S.C. § 1291 and we affirm.

Regardless whether Akzo priced its product below cost as calculated in accordance with Cal. Bus. & Prof.Code §§ 17026, 17029, Coatings’s cause of action under Cal. Bus. & ProfCode § 17043 fails for lack of a triable issue of fact as to whether Akzo bid with the required purpose of injuring competitors or destroying competition. See W. Union Fin. Servs. v. First Data Corp., 20 Cal.App.4th 1530 , 25 Cal.Rptr.2d 341 , 346 n. 10 (Ct.App.1993) (‘We read [§ 17043] to require an injurious intent (a specific intent to injure or destroy) and not just an intent to divert customers from a competitor.”). Nor can Coatings invoke the presumption of unlawful intent provided by Cal. Bus. & Prof. Code § 17071 , because even if Akzo sold below cost, the evidence was undisputed that there was no injurious effect because any harm Coatings suffered was not the…