Tortious Interference
Tortious interference refers to a legal claim that arises when one party intentionally disrupts another party’s contractual or business relationships, resulting in economic harm. This concept is rooted in tort law, which deals with civil wrongs that cause harm or loss to individuals or entities.
There are two primary types of tortious interference:
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Tortious Interference with Contract: This occurs when a third party intentionally induces one of the parties to a contract to breach that contract, causing the other party to suffer damages. For example, if Company A has a contract with Company B, and Company C knowingly persuades Company B to break that contract, Company A may have a claim for tortious interference with contract against Company C.
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Tortious Interference with Prospective Economic Advantage: This involves interference with a business relationship that is not yet formalized into a contract. It occurs when a party disrupts a potential business relationship, causing the affected party to lose out on expected economic benefits. For instance, if an employee of Company D shares confidential information with a competitor, leading to the loss of a business opportunity for Company D, this could be considered tortious interference with prospective economic advantage.
To succeed in a claim for tortious interference, the plaintiff generally must prove several elements:
- The existence of a valid contract or prospective economic relationship.
- Knowledge of that relationship by the third party.
- Intentional interference by the third party.
- Damage resulting from the interference.
Tortious interference claims can arise in various contexts, including employment disputes, business negotiations, and competitive market scenarios. Remedies for such claims may include compensatory damages, punitive damages, or injunctions to prevent further interference.
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