Tortious Interference is when one party interferes with another party’s business contracts or working relationships. There are various reasons why they might do this, such as gaining a client or eliminating a rival to gain a competitive edge.
If you’re dealing with tortious interference, it can be stressful. Tortious interference can cause a loss of income or profits, while creating emotional distress or even reputational damage for businesses.
Read the rest of this article to explore the different types of tortious interference, how you can protect your business from it, and how a lawyer can help you.
What are Common Types of Tortious Interference?
Tortious interference can affect existing contracts or business relationships without contracts. Here is a description of both of them.
Tortious Interference with Contractual Relationships
In cases of tortious interference with existing contacts, a third party will interfere with its clauses and terms.
During this claim, a lawyer will have to prove that the contract was valid, solely between the two parties, and the third party knew about the contact and wrongfully tried to disrupt it and caused harm.
Tortious Interference with Prospective Economic Advantage
This type of tortious interference occurs when a third party interferes with a business relationship in which there is no contract.
To prove the wrongdoing, lawyers need to prove that the business had a working relationship with the other party (such as a person or company). The third party needs to have known about the relationship and lawyers will show evidence of them having wrongfully tried to disrupt it and cause harm.
How Can You Prevent Tortious Interference?
You can protect your business against tortious interference in various ways.
Draft Clear Contracts
It’s essential to draft clear, legal, and transparent contracts that outline important clauses such as party obligations and termination terms. If there’s any vague or confusing information in the agreement, it makes it easier for third parties to interfere with it.
If you need your business contracts drafted, you should hire a lawyer on ContractsCounsel, an online legal network that connects vetted lawyers on the platform with clients.
Your lawyer will draft a clear, concise, and fair agreement for parties that’s legally sound to protect your business.
Include Non-Compete and Non-Disclosure Clauses
When drafting a contract, your lawyer should include non-compete and non-disclosure clauses.
- Non-compete clauses will stop previous employees from competing with the business by working with their clients or competitors.
- Non-disclosure clauses protect the business’s sensitive information so that working relationships also stay private.
Keep Working Relationships Strong
Ensure that the people you work with maintain open communication with you so that you can handle any issues or disputes as soon as they arise.
When you maintain strong working relationships with suppliers, vendors, and potential partners, you can minimize outsider influence.
How Should You Deal with Tortious Interference?
If tortious interference has occurred, these are the steps you should follow.
Compile a Record of the Interference
You should collect as much evidence as you can of the tortious interference. This can include messages with the third party, contracts or agreements, and statements that show evidence of the disruption and/or its effects.
Consider the Damages
You want to show proof of the tortious interference consequences, such as lost income or unhealthy levels of stress. This can help your lawyer to build a strong case on your behalf.
Communicate with the Third Party
If you know the third party, you’ll want to reach out to them to try to talk about the disruption. By gaining more information from them about their actions, you can better understand the reason for the interference. In some cases, this will be enough to end the disruption.
Consider Mediation
If you can’t communicate with the third party causing the interference, you can consider mediation. This is a type of alternative dispute resolution (ADR) method that involves hiring a neutral, third-party mediator. They will oversee communications between you and the third party so that you can reach a resolution to the dispute.
How Can a Lawyer Help You with Tortious Interference?
Seeking legal guidance for tortious interference is essential so that you navigate the situation in an effective way. A professional lawyer on ContractsCounsel will help you to minimize your risks and protect your interests and business reputation.
A lawyer will also help you to prove tortious interference. They do this in the following ways.
Proof of a Valid Contract
If a contract was involved in the business relationship, a lawyer needs to prove that the contract was valid. It’s common for tortious interference cases to include contract breaches by third parties. To prove this, it’s helpful if the parties can testify that the defendant was being disruptive.
Intent to Interfere
There should be proof that the defendant was trying to interfere in the other parties’ business relationship, not that it occurred by accident. In other words, their actions need to be calculated and wrongful.
Damages
It’s essential to show evidence of losses, such as economic losses or emotional distress, because of the defendant’s behavior.
What are Legal Remedies for Tortious Interference?
Common legal remedies for tortious interference cases include:
- Compensation. These will cover your losses suffered because of the interference. Examples include paying you back profits you would have gained from a successful contract.
- Punitive or exemplary damages. If you’re involved in a serious or malicious case, you might be awarded these. They involve more damages to cover your loss and set an example to prevent others from doing the same behavior.
- Injunctive relief. Your lawyer can pursue this action to enforce contract terms or stop future interferences. This works effectively if you’re dealing with a disruptor who is continuing their behavior.
Do you need a lawyer for tortious interference?
If you’re dealing with a case of tortious interference, you should contact a lawyer on ContractsCounsel. All lawyers on the platform are vetted. They have the skills and expertise to help you navigate the tortious interference so that you can preserve your business reputation and minimize your losses.
