Tortious interference occurs when a company or individual interferes with a competitor’s contractual obligations or commercial connections. This can have a detrimental effect on the competitor’s financial health.
Tortious interference obstructs a contractor’s ability to fulfill their contractual obligations, thereby preventing the client from receiving the promised goods or services. Examples include coercion, threats, influence or other illicit means to induce another party to breach its contract with a third party.
Two types of tortious interference
Tortious interference often occurs in one of the ways listed below.
- Tortious interference with contract rights occurs when someone wrongfully creates a breach of contract between you and a third party, resulting in damages to yourself or your business.
- Tortious interference with a business relationship occurs when a rival or other third party purposefully tampers with a person’s business contacts to keep them from establishing or sustaining a commercial partnership that would have otherwise happened.
When either of these interferences occurs, they may result in the third party being challenged in court. For you to prevail on these grounds, you must prove that the third party (defendant) acted intentionally.
Proving intent
You must be able to answer the following questions if you wish to prove the defendant’s intent.
- Why did the defendant interfere?
- What interests does the defendant have in your business?
- How did the interference occur?
- What was the nature of the relationship or agreement that was breached, and is maintaining that relationship in the public interest?
- Did the defendant deliberately intend to disrupt or ruin your dealings with another person or business?
- What damages occurred as a result of the defendant’s actions?
The defendant will most likely attempt to prove that they were just trying to remain competitive. Therefore, it is in your best interest to consult with someone who can assist you with proving your case.