Arata Equipment v. Lodal
Plaintiff Arata Equipment Company (Arata) entered into a distributorship agreement with defendant Lodal, Inc. (Lodal) allowing Arata to sell refuse disposal and collection trucks manufactured by Lodal. The agreement included a clause reserving to Lodal the right to make direct sales to customers (the direct sales clause). Lodal later sold trucks to a customer with which Arata had done business. Arata sued Lodal for breach of contract, intentional interference with prospective economic advantage, unfair business practices (Bus. & Prof. Code, § 17200), and breach of the implied covenant of good faith and fair dealing. Lodal moved for summary judgment, and the trial court granted the motion, finding as a matter of law that the direct sales clause authorized Lodal to make the sales in question.[1] Arata has appealed the ensuing judgment. We shall affirm.
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