Although the market encourages healthy competition between companies, there are instances in which competitive behavior may go too far and be deemed unlawful. This is referred to as tortious interference, and it can lead to a lawsuit if one business has engaged in unfair practices against another. Lawyers are frequently hired to represent these types of cases when one party disrupts a competitor’s business endeavors with the intent of causing financial harm. Here is a basic overview of how this kind of tort claim works.

A Business Owner’s Guide to Tortious Interference 

How is tortious interference viewed under the law?

Tortious interference occurs when one company disrupts a contract or relationship a competing company has in place with another individual or entity and, in turn, ruins their opportunity to make money. When it comes to contracts, the disruption takes place by doing something that causes the third party to breach the contract or inhibits their ability to hold up their end of the terms. In regards to business relationships, the situation is similar, but a contract does not exist. 

What are some of the elements of a tortious interference claim? 

When a company has suffered the consequences of tortious interference, they have a right to seek compensation for their losses. However, these claims are quite complex and should be handled by a skilled lawyer. To achieve a favorable outcome, it’s necessary for the plaintiff to prove the following elements exist: 

• There was a valid contract or economic expectancy between the plaintiff and another party
• The defendant had knowledge of this 
• There was intent by the defendant to interfere with the business deal 
• The defendant’s actions were improper
• The plaintiff sustained economic hardship 

A claim must have each of these elements to make it to trial.

What kinds of damages are recoverable in a lawsuit?

There are a variety of ways businesses can suffer financial burden caused by tortious interference. Lawsuits commonly pursue compensatory damages related to loss of profits and unexpected expenses incurred by the defendant’s misconduct. It’s rare, but under certain circumstances, it can also be possible to recover punitive damages and be awarded compensation for pain and suffering.

If you believe your business’s bottom line has been damaged due to tortious interference, don’t wait to seek counsel. A business lawyer from Knochel Law Offices will explore your legal options with you and determine what course of action to take next. If you have a valid claim, they will work diligently to help you recover the profits you’ve lost. Since 1987, their lawyers have been entrusted to represent numerous entrepreneurs throughout the California, Arizona, and Nevada Tri-state area. Call (928) 444-1000 to arrange a consultation, or visit them online for more information on their business law experience.