Your business depends on good relationships with clients, suppliers and partners. When someone steps in and breaks these connections, your business can suffer serious harm.
Depending on the nature and intent of the disruption, you might have a case of “tortious interference.” This happens when someone or another business purposely damages your business deals or contracts, causing financial losses or operational issues.
What are the grounds for tortious interference?
For a business to claim tortious interference, these key elements must exist:
- Valid business relationship: You must have an actual contract or clear business relationship with another party. This could be a signed agreement with a supplier or an ongoing relationship with a regular customer.
- Knowledge of relationship: The person who interfered must have known about your business relationship. They cannot claim ignorance as a defense if they clearly know about your contract or business connection.
- Intentional actions: The interference must be deliberate, not accidental. The person or entity must have chosen to act in a way that harmed your business relationship.
- Actual harm: Your business suffered real damage from the interference, such as lost profits or damaged relationships. These damages must be quantifiable and directly linked to the interference.
These elements help courts decide whether someone’s actions cross the line from fair competition to wrongful interference.
What issues may count as tortious interference?
Certain acts or practices that may be tortious interference include:
- Spreading harmful lies about your company’s financial health, causing clients to cancel contracts
- Pressuring your suppliers through threats or improper incentives to stop working with you
- Breaking up business relationships by bribing employees or using dishonest tactics with partners
If you are facing any of the above, you have several ways to handle it. Document all incidents and damages carefully. Many business owners start by talking directly with the other party to fix any misunderstandings. If that doesn’t work, you can try mediation, where a neutral party helps both sides reach an agreement. However, if the other party refuses to cooperate or the harm continues, then litigation may be necessary.
Protect your interests
Facing potential tortious interference? Reach out to an attorney to understand your rights and clarify your options.