Complete Escrow Service v. Flagstar Bank
Mortgage lender Flagstar Bank, FSB (Flagstar), decided in early 2011 to make licensed escrow agent Complete Escrow Service Corporation (Complete) ineligible to do business with Flagstar. Flagstar included Complete’s name on a list of ineligible escrow agents; the list was made available to the mortgage brokers with whom Flagstar does business. Flagstar also told one mortgage broker that Flagstar had “blacklisted†Complete.
Complete sued Flagstar for intentional interference with contractual relations and with prospective economic advantage, unfair business practices, and defamation. The trial court entered a stipulated summary judgment in favor of Flagstar. With respect to the first cause of action for intentional interference with contractual relations, Complete showed the existence of a triable issue of material fact as to the elements of Flagstar’s knowledge of and intent to induce the breach of three executed escrow agreements. As a result, the cause of action for intentional interference with contractual relations survives summary judgment. We conclude, however, that there was no triable issue of material fact as to Complete’s second and fourth causes of action for intentional interference with prospective economic advantage and defamation because the evidence shows Flagstar’s actions were privileged, and Complete failed to show malice. We further conclude there was no triable issue of material fact as to the third cause of action for unfair business practices.
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