Competition between companies is the basis of the U.S. economy. It not only helps to ensure consumers get the highest quality products and services for the best possible prices but also encourages businesses to be more motivated in reaching their goals. Unfortunately, there are instances in which one company may take their competitive behavior too far by interfering with another business’ relationships or contracts. This is referred to as tortious interference in business law. Here is a brief overview of what this category of tort claim entails.

A Guide to Tortious Interference

What Is Tortious Interference?

Tortious interference takes place when a company causes one of their competitors’ economic damages by disrupting a relationship or contract they had in place with another individual or entity. According to business law, this is considered an unfair practice, and any company that exhibits this kind of misconduct may be held financially responsible. In an interference lawsuit, the victim may either be the organization who was damaged by the breach in contract or change in relationship or the party who was forced into making the breach.

Elements of a Tortious Interference Claim

For the plaintiff to prevail in a tortious interference claim, business law requires them to prove that several elements exist. This includes showing:

• A valid contract was in place between the plaintiff and a third party
• The defendant was aware of the contract
• The defendant’s actions were intentional and improper
• The defendant’s actions directly resulted in loss for the plaintiff
• The plaintiff sustained economic burden

If a claim is missing any of these elements, it’s not likely the case will make it to trial.

Damages That Can Be Recovered for Tortious Interference

Victims of tortious interference may suffer financial hardship in various ways. It’s common for lawsuits to pursue compensatory damages related to loss of profits and expenses incurred from the defendant’s actions. Though rare, in some cases, it is also possible to recover compensation for pain and suffering and be awarded punitive damages. This typically happens when the defendant is found to have intentionally tried to harm the plaintiff.

If you believe you have lost economic opportunities due to tortious interference or were forced to break a contract, it’s important to discuss your legal options with an experienced business law attorney. Cases involving business torts can be complex, but the law office of Lee, Livingston, Lee, Nichols & Barron, P.C. has a team of skilled litigators who offer an impressive track record with these types of disputes. For decades, they have provided the support and guidance Dothan, AL, entrepreneurs need to successfully seek the compensation and justice they deserve. Call (334) 792-4156 to arrange a consultation, or visit them online for more information on their corporate litigation services.