Facts

Starlight Cinemas Inc. brought a lawsuit against Regal Entertainment Group for claims under the Cartwright Act, California's unfair competition law, and intentional interference with prospective economic advantage.

PLAINTIFF'S CONTENTIONS:
Starlight alleged that they competed in the movie theater business in the city of Corona. Starlight further alleged that although it requested film licenses from film distributors, often on better financial terms than Regal, such requests were rejected. Starlight contended that Regal demanded exclusivity provisions, which barred licensing to Starlight in Corona at the same time, in its agreements with film distributors.

DEFENDANT'S CONTENTIONS:
Regal argued that Starlight failed to allege facts showing there was any agreements between distributors and Regal, whereby distributors agreed not to license simultaneously to the Starlight theater, as opposed to independent business decisions. Regal also argued that Starlight failed to properly allege harm to competition, as necessary under the Cartwright Act.

Result

The court granted Regal's motion to dismiss. The court held that Starlight failed to properly plead a Cartwright Act violation, in part, because Starlight's allegation that Regal demanded exclusivity provisions was a mere legal conclusion, lacking specificity. The court further held that because Starlight's Cartwright claim failed, the unfair competition and intentional interference with prospective economic advantage claims also failed.