Running a business requires building strong relationships with clients, vendors, and partners. When a competitor or outside party intentionally steps in to damage those relationships, the financial consequences can be immediate. Massachusetts civil law addresses this type of conduct through a tort claim known as tortious interference.
Two types of tortious interference in Massachusetts
Massachusetts courts recognize two distinct forms of tortious interference in commercial disputes:
- Interference with a contractual relationship: occurs when a third party intentionally causes one of the contracting parties to breach an existing, legally binding agreement
- Interference with advantageous business relations: occurs when a third party disrupts an ongoing business relationship or a prospective deal that had a reasonable probability of resulting in financial benefit, even if no formal contract was yet signed
Both forms can give rise to a civil lawsuit if the required legal elements are met.
What you must prove
Under Massachusetts common law, establishing a tortious interference claim requires proving some elements. Losing a client to a competitor through fair market competition does not meet this standard; the conduct must go beyond ordinary business rivalry:
- A valid relationship existed: you had an active contract or a demonstrable, ongoing business relationship with a third party
- Knowledge by the defendant: the person or business causing the disruption knew about the contract or relationship
- Improper conduct: the defendant acted with an improper motive or used improper means, such as misrepresentation, defamation, economic coercion, or fraud
- Actual financial harm: your business suffered measurable losses as a direct result of the interference
Another element also considers if the person or business causing the disruption induced the third party to impair the relationship.
Improper means vs. fair competition
Healthy competition is legal. A competitor is free to offer lower prices, better terms, or superior service to win customers. The line is crossed when a party uses unlawful tactics to sabotage an existing relationship, such as making false or defamatory statements about your business, threatening or coercing your clients into breaking contracts, using stolen trade secrets or confidential customer lists, or inducing an employee to breach a valid non-disclosure or non-compete agreement.
Massachusetts courts assess these situations on a case-by-case basis, weighing the nature of the conduct and the intent behind it against the competitive context.
Protecting your business
If a third party is interfering with your client relationships or commercial agreements, documenting communications, preserving invoices, and collecting written statements from affected parties will support your legal position. A business litigation attorney in Massachusetts can evaluate whether the conduct meets the standard for a tortious interference claim and advise you on the options available to stop the harm and recover your losses.