Between 2009 and 2012, American Asphalt South, Inc. (“American”) outbid Roy Allan Slurry Seal, Inc. (“Allan”) or Doug Martin Contracting, Inc. (“Martin”) on 23 public works contracts totaling more than $14.6 million to apply a slurry seal protective coating to various roadways throughout Southern California. Allan and Martin sued American in five counties, alleging intentional interference with prospective economic advantage and other torts, claiming that American had only been able to submit the lowest bids by paying its workers less than the statutorily required prevailing wage. The trial court sustained the demurrer to the interference claim, but the Court of Appeal reversed, holding that plaintiffs as the lawful and second lowest bidders had a reasonably probable economic expectancy that they would be awarded the contracts but for American’s allegedly illegal acts in underpaying its employees. The appellate court affirmed dismissal of claims for predatory pricing under the Unfair Practices Act and for an injunction under the Unfair Competition Law.
Roy Allan Slurry Seal, Inc. v. American Asphalt South, Inc., 2015 WL 738675 (Cal. Ct. App. 2015)