Bio-Medical Research Ltd. v. Thane International, Inc.
Bio-Medical Research Ltd. v. Thane International, Inc.
Opinion of the Court
MEMORANDUM
The district court granted defendants’ summary judgment motion on the ground that plaintiffs lacked competitor standing under the Lanham Act and substantially congruent state laws.
The district court’s ruling appears to be based on the ground that plaintiffs had “adduced no evidence that they endeavor to perform the same functions” as the defendants.
Because we conclude that the district court should not have granted summary judgment without allowing the plaintiffs to conduct further discovery, we vacate the court’s order granting defendants’ summary judgment motion.
The district court did not err in dismissing plaintiffs’ causes of action for interference with prospective economic advantage and conspiracy to interfere with prospective economic advantage pursuant to Fed. R. Civ. Proc. 12(b)(6). In their complaint, plaintiffs allege that defendants interfered with the “relationship between Plaintiffs and potential consumers.” The tort of interference with prospective economic advantage does not, however, protect mere “potential” relationships — which are “at most a hope for an economic relationship and a desire for a future benefit.” Westside Ctr. Assocs. v. Safeway Stores 23, Inc., 42 Cal.App.4th 507, 527, 49 Cal. Rptr.2d 793. One of the elements of the tort of interference with prospective economic advantage is “an existing relationship with an identifiable buyer.” Id. Because plaintiffs do not identify any such existing economic relationship that has been disrupted, they fail to state a claim for either interference with prospective economic advantage or conspiracy to interfere with prospective economic advantage.
Because we reverse the district court in part, we vacate and remand the grant of attorneys’ fees to defendants.
REVERSED IN PART; AFFIRMED IN PART; VACATED IN PART AND REMANDED.
This disposition is not appropriate for publication and is not precedent except as provided by 9th Cir. R. 36-3.
. The district court granted defendants’ alternative motions for judgment on the pleadings pursuant to Fed. R. Civ. P. 12(c) and for summary judgment. Because "matters outside the pleadings [were] presented to and not excluded by the court," we consider the district court's ruling to be the grant of a motion for summary judgment. Fed. R. Civ. P. 12(c).
. To the extent the district court granted the summary judgment motion on the alternate ground that plaintiffs had "not adduced any evidence that they sell any competitive product in the United States," the court erred, because there is undisputed evidence that BMR Neurotech sold the Flex in the United States.
. On this incomplete record, we do not reach the issue whether the district court was correct in ruling that plaintiffs must endeavor to do the same things as the defendants in order to establish competitor standing under the Lanham Act and substantially congruent state law.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.