Tortious Interference | Practical Law

Tortious Interference | Practical Law

Tortious Interference

Tortious Interference

Practical Law Glossary Item 5-382-9829 (Approx. 9 pages)

Glossary

Tortious Interference

A common law tort that most often arises in commercial litigation when one party damages another party’s contractual or business relationship with others. Most jurisdictions recognize separate claims for tortious interference with contract and tortious interference with business relationships. Some jurisdictions also recognize other types of tortious interference claims, such as tortious interference with an expected inheritance.
Tortious interference with contract arises when a defendant intentionally convinces or causes a third party to breach its contract with the plaintiff, which results in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with contractual relationship or contract rights.
The elements of the tort can vary by state but generally include the following:
  • A valid contract between the plaintiff and a third party exists.
  • The defendant has knowledge of that contract.
  • The defendant has the requisite intent to induce the third party to breach the contract with the plaintiff.
  • The defendant lacks justification to induce that breach.
  • The breach causes damages to the plaintiff.
Tortious interference with business relationship is a similar claim that typically arises when no valid contract exists and a defendant intentionally interferes with the business relationship between a third party and the plaintiff, resulting in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with prospective or existing business advantage, tortious or intentional interference with prospective or existing economic advantage, and tortious or intentional interference with business expectancy.
The elements of the tort can vary by state but generally include the following:
  • A business relationship exists between the plaintiff and a third party that affords the plaintiff some legal right.
  • The defendant has knowledge of that relationship.
  • The defendant has the requisite intent to interfere with the relationship between the third party and the plaintiff.
  • The defendant lacks justification to interfere with that relationship.
  • The breach causes damages to the plaintiff.