C.R. Eng. v. Swift Transp. Co.
437 P.3d 343
Utah2019Background
- England (trucking company) hires and trains drivers under nine‑month exclusive employment agreements; it notifies competitors of those contracts.
- Swift (competing trucking company) allegedly recruited England drivers still under contract by offering better pay/benefits.
- England sued Swift for intentional interference with contract; Swift moved for summary judgment arguing England failed to prove the required element of "improper means."
- Federal district court certified questions to the Utah Supreme Court about (1) whether "improper means" is an element of the tort for interference with existing contracts and (2) what constitutes "improper means."
- Utah Supreme Court reviewed precedent (Bunnell, Leigh, St. Benedict’s, Eldridge) and considered whether to overrule St. Benedict’s, which extended Leigh’s improper‑means test to existing contracts.
- Court declined to overrule St. Benedict’s and clarified that "improper means" requires conduct contrary to law or a violation of an objective, industry‑wide standard.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether "improper means" is an element of intentional interference with existing contracts | England: No; plaintiff need only prove intentional inducement and damages unless justified | Swift: Yes; Leigh and St. Benedict's require improper means as part of the prima facie case | Held: Yes; "improper means" is an element for interference with existing contracts and prospective relations; St. Benedict's reaffirmed |
| Whether St. Benedict's should be overruled | England: St. Benedict's misread Leigh and should be overturned under Eldridge factors | Swift: St. Benedict's correctly adopted a sound rule consistent with other jurisdictions | Held: Declined to overrule; precedent is well‑supported and firmly embedded in Utah law |
| What qualifies as "improper means" | England: Inducement of breach alone suffices as improper means | Swift: Requires conduct contrary to law or violation of an industry standard | Held: Improper means means conduct contrary to law (statute, regulation, recognized common‑law rule) or violation of an objective, industry‑wide standard or trade/professional rule |
| How to prove industry standard violation | England: (implicit) company rules or evidence of breach should suffice | Swift: Must be objective, industry‑wide standard | Held: Plaintiff must show an external, objective industry standard (e.g., expert testimony, uniform codes, industry regulations); internal company policy alone is insufficient |
Key Cases Cited
- Bunnell v. Bills, 368 P.2d 597 (Utah 1962) (early Utah discussion that interference is not actionable when done by an act one has a legal right to do)
- Leigh Furniture & Carpet Co. v. Isom, 657 P.2d 293 (Utah 1982) (articulated test requiring interference by improper means or purpose and listed examples of improper means)
- St. Benedict's Development Co. v. St. Benedict's Hospital, 811 P.2d 194 (Utah 1991) (extended Leigh's improper‑means test to interference with existing contracts)
- Eldridge v. Johndrow, 345 P.3d 553 (Utah 2015) (refined Leigh by eliminating "improper purpose" and articulated factors for overturning precedent)
