Tortious interference happens when someone deliberately harms a business relationship or contract between other parties. It often involves one company trying to disrupt a deal, contract, or ongoing business arrangement for its own gain.
This kind of interference can hurt businesses financially and damage long-term relationships. There are two types: interference with a contract or interference with a prospective economic relationship.
Interference with an existing contract
This type occurs when someone intentionally causes another party to break a valid contract. For example, if a business has a supply agreement with a vendor, and a competitor persuades the vendor to walk away from the deal early, it could be seen as tortious interference.
The key issue is whether the interfering party knew about the contract and intentionally caused a breach without a legitimate reason.
Interference with future business opportunities
Tortious interference does not always involve a signed contract. It can also apply to potential business deals that never get off the ground due to outside influence.
For example, if one company spreads false rumors about another to prevent a client from signing a deal, that could count as interference with a prospective economic relationship. The intent to disrupt a likely business opportunity is central to this type of claim.
Common examples in business settings
Some common situations involving tortious interference include:
- Poaching clients who are under contract with a competitor
- Encouraging employees to violate non-compete agreements
- Spreading false information to sabotage a deal
- Pressuring suppliers to stop working with a rival company
These actions can create serious challenges for businesses trying to grow or maintain partnerships. Tortious interference claims can help address the harm caused by such behavior. These situations always require thorough legal guidance.