Tortious Interference 101

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Tortious Interference is an important legal concept that can have serious consequences for businesses, individuals and the wider economy. It occurs when one party deliberately and intentionally interferes with another’s contractual or business relationships, to the point where the relationship is damaged and the injured party suffers a loss. This could be something as simple as a competitor offering a customer a better deal in order to get them to switch from one business to another, or something more serious like a third party using threats or intimidation to break up a contract.

The concept of tortious interference may be overlooked or misunderstood, however it is an important legal tool that can help protect businesses and individuals alike from wrongful interference. A successful tortious interference claim can result in an award of damages such as compensatory damages (to compensate for actual losses), punitive damages (to punish wrongdoers) and injunctive relief (a court order preventing similar conduct).

Given its potential consequences, understanding this concept is essential for business owners and those involved in contractual or business relationships. It is even more vital for students and researchers who wish to gain greater knowledge on this important legal tool in order to protect their rights.

Fortunately, Genie AI provides free tortious interference templates as part of its world’s largest open source legal template library – with millions of data points teaching its AI what market-standard tortious interference looks like. Genie AI’s step-by-step guidance means anyone can draft high quality documents with confidence - without needing an account or requiring users to be lawyers themselves - just wanting everyone access justice fairly and equally across society! Read on below for information on how you can access their template library today!

Definitions (feel free to skip)

Tortious Interference: A civil wrong that occurs when one party interferes with the contractual or business relationship of another party.

Elements: The factors that must be proven in order to bring a successful tortious interference claim.

Intentional Conduct: Actions taken with the intent to disrupt another party’s contractual or business relationship.

Causation: Proving that the defendant’s actions were a direct and proximate cause of the damages the plaintiff suffered.

Damages: Losses suffered by the plaintiff as a result of the defendant’s interference, such as lost profits, lost business opportunities, and emotional distress.

Defenses: Arguments raised by the defendant to defend against a tortious interference claim, such as a lack of intent, privilege, or legitimate business interests.

Remedies: The legal relief available for tortious interference, including monetary damages, injunctive relief, and declaratory relief.

Injunctive Relief: A court order requiring the defendant to stop engaging in certain activities or to take certain actions.

Declaratory Relief: A court order declaring the rights and legal status of the parties.

Legitimate Business Interests: The interests of the defendant in protecting their own business operations.

Contents

• Definition of tortious interference
• Elements of a tortious interference claim
• Intentional conduct
• Causation
• Damages
• Possible defenses to a tortious interference claim
• Lack of intent
• Privilege
• Legitimate business interests
• Remedies available for tortious interference
• Monetary damages
• Injunctive relief
• Declaratory relief
• Examples of tortious interference
• Tips for avoiding tortious interference
• Understand the relevant law
• Avoid making threats
• Summaries of relevant case law
• Research of applicable statutes
• Advice on how to pursue a tortious interference claim in court
• Identify the applicable court
• File a complaint
• Serve the complaint to the defendant
• Prepare for trial
• Present your case
• Strategies for settlement negotiations

Get started

Definition of tortious interference

• Learn the definition of tortious interference, which is when one party intentionally interferes with another party’s contractual or business relationships
• Know that tortious interference is a type of civil wrong or tort that can result in a lawsuit
• Understand that the purpose of a tortious interference claim is to seek compensation for losses that resulted from the interference
• Be aware that certain elements must be present for a successful tortious interference claim, such as the existence of a contract or business relationship between two parties and the intentional interference in that relationship by a third party
• When you can answer all of these questions and have a good understanding of tortious interference, you will have completed this step and can move on to the next one.

Elements of a tortious interference claim

• To prove a tortious interference claim, there must be an existing contract or business relationship between two parties.
• The defendant must have knowledge of the contract or business relationship.
• The defendant must have acted intentionally to induce a breach of the contract or business relationship.
• The defendant must have acted without justification.
• The defendant’s actions must have caused damages.

Once you have identified these elements, you can check this step off your list and move on to the next step.

Intentional conduct

• Understand the definition of intentional conduct, which is when a party acts with purpose and knowledge
• Know that a party does not need to have intended the specific result of their act for it to be considered intentional
• Identify whether the defendant’s conduct can be considered intentional; was it purposeful or done with knowledge?
• Recognize that if the defendant’s conduct was not intentional, then the tortious interference claim cannot proceed

Once you have identified whether the defendant’s conduct was intentional, you can check this step off your list and move on to the next step, which is causation.

Causation

• Understand what constitutes causation: Causation refers to a situation in which a party’s interference with a contract or relationship creates a legal cause of action.
• Know the legal standard for causation: The legal standard for causation is that the defendant’s conduct must be a substantial factor in causing the plaintiff’s harm.
• Consider the timing of the interference: The defendant’s conduct must have occurred relatively close in time to the harm that was caused in order for it to be considered a substantial factor.
• Be aware of the “but for” test: The “but for” test is used to determine whether the defendant’s conduct was a substantial factor in causing the plaintiff’s harm. If the harm would not have occurred “but for” the defendant’s conduct, then it is a substantial factor in causing the plaintiff’s harm.

How you’ll know when you can check this off your list and move on to the next step:

• Once you have a thorough understanding of causation, its legal standard, the timing of the interference, and the “but for” test, you can check this off your list and move on to the next step.

Damages

• Identify the damages suffered by the plaintiff, such as lost profits, lost business opportunities, and other financial losses
• Determine whether the plaintiff has suffered any emotional or reputational damages as a result of the tortious interference
• Consider any additional damages that the plaintiff may have suffered, including attorney’s fees, costs, and expenses
• Determine whether the damages are compensatory or punitive
• When finished, you should have a clear understanding of the damages suffered by the plaintiff due to the tortious interference

Possible defenses to a tortious interference claim

• Understand the elements of a tortious interference claim, including the existence of a contract, the wrongdoer’s knowledge of the contract, intentional interference, and the resulting damage
• Review the facts and evidence to assess if any of the elements of a tortious interference claim are not present
• Determine if any of the following defenses, which can prevent a tortious interference claim from succeeding, are present:
• The wrongdoer lacked necessary intent
• The wrongdoer had a legal justification for their conduct
• The alleged contract was invalid
• The alleged contract was unenforceable

You can check this step off your list when you have reviewed the facts and evidence to assess the presence of any of the potential defenses listed above.

Lack of intent

• Identify any evidence to show that the defendant did not intend to cause harm or disruption of the plaintiff’s contractual relationship
• Demonstrate that the defendant was acting in good faith and was not intending to cause harm or disruption to the plaintiff
• Determine if the defendant’s actions were reasonable in the circumstances
• Once you have determined there was no intent to cause harm or disruption to the plaintiff, you can check this step off your list and move on to the next step.

Privilege

• Understand what constitutes as ‘privilege’ in this context. Generally, privilege refers to an individual or party having the legal right to engage in a certain activity, or to refuse to do so.
• Understand the types of privilege that could be applicable in the context of tortious interference. These could include contractual, statutory, or common-law privilege.
• Apply the applicable privilege to the case in question. Ask yourself if the individual or party had the legal right to act as they did.
• Once you have identified the applicable privilege and assessed its applicability to the case, you can move on to the next step.

Legitimate business interests

• Understand what may constitute a legitimate business interest
• Identify what types of activities would be considered a legitimate business interest
• Identify the purpose of a legitimate business interest
• Understand the potential legal implications of a legitimate business interest
• Be aware of the potential for conflict between parties
• When in doubt, consult with a qualified attorney

Once you have a clear understanding of legitimate business interests, you can move on to the next step in the guide.

Remedies available for tortious interference

• Understand that the remedies for tortious interference are intended to put the wronged party back in the position they were in prior to the interference.
• The remedies typically include an injunction to prevent further interference, monetary damages, and/or the disgorgement of profits.
• The court will decide on the appropriate remedy based on the facts of the case and the severity of the interference.
• Be aware that punitive damages may also be awarded in some cases, depending on the circumstances.

Once you understand the different remedies available for tortious interference and how they may be awarded, you can check this off your list and move on to the next step.

Monetary damages

• Monetary damages can be awarded to a plaintiff who has suffered economic losses due to tortious interference.
• The plaintiff must demonstrate that their economic losses were directly caused by the defendant’s tortious interference.
• The plaintiff must also prove that their economic losses were foreseeable at the time of the tortious interference.
• The amount awarded should be sufficient to make the plaintiff whole, and should not exceed the actual losses suffered.
• Once the plaintiff has established their entitlement to monetary damages and the amount thereof, they may be able to check this off their list and move on to the next step, which is obtaining injunctive relief.

Injunctive relief

• File a complaint with a court of law against the entity that has unlawfully interfered with your contractual obligations
• Seek an injunction to prevent the entity from continuing to interfere with your contractual obligations
• You’ll know you’ve completed this step when the court has issued an injunction against the interfering entity

Declaratory relief

• Investigate the facts of the case to determine whether a tortious interference occurred
• Draft a complaint that identifies all of the parties involved, outlines the facts that support a claim of tortious interference, and requests a declaration from the court
• Serve the complaint on the defendants
• Depending on the jurisdiction, the court may allow for a period of time for the defendants to respond to the complaint before hearing oral arguments
• Attend the court hearing and present your evidence, arguments, and legal authority to support a finding of tortious interference
• Receive a declaration from the court, which legally states that a tortious interference occurred
• You will know you can check this off your list and move on to the next step when you have obtained a declaration from the court.

Examples of tortious interference

• Examples of tortious interference include inducing a breach of contract, inducing a breach of fiduciary duty, and interfering with prospective economic advantage.
• You can check this step off your list when you can identify the types of tortious interference.

Tips for avoiding tortious interference

• Make sure your actions are legal and you are not interfering with pre-existing contractual obligations.
• Avoid any form of malicious interference, such as making false statements about a potential competitor or their product.
• Respect the contracts and obligations of others and refrain from taking any action that will disrupt them.
• Abide by all applicable laws and regulations when conducting business.
• Prior to entering into any contractual relationship, ensure that you are not in any way interfering with the contractual relationships of others.

You can check off this step when you have a clear understanding of how to avoid tortious interference.

Understand the relevant law

• Research the relevant law in your jurisdiction, such as the tort of intentional interference with contractual relations
• Learn the elements of this tort which you’ll need to prove to succeed in a tortious interference claim
• Understand the remedies that may be available to you if you can prove this tort
• Understand defenses to tortious interference and how to use them
• Become familiar with the legal tests for tortious interference
• When you have a deep understanding of the relevant law, you can move on to the next step.

Avoid making threats

• Remain civil and professional when communicating with anyone involved in the dispute.
• Refrain from making threats or issuing ultimatums to any of the parties.
• Do not make promises or statements intended to influence the actions of the other parties in a dispute.

Once you have refrained from making threats or issuing ultimatums, you can move on to the next step.

Summaries of relevant case law

• Research and read through relevant case law in order to gain a better understanding of tortious interference
• Take notes on the facts of each case and the court’s opinion
• Educate yourself on the legal precedents that have been set in regards to tortious interference
• When you have a comprehensive understanding of the relevant case law, you can move on to the next step.

Research of applicable statutes

• Identify the relevant state statutes related to tortious interference
• Read the statutes and take notes on their content
• Make sure to take special note of any potential defenses that may be available to the defendant
• Take note of any time limits for filing a tortious interference claim
• Research any existing case law that is relevant to the statutes
• Ensure that you are familiar with the language and terms used in the statutes
• Once you have a thorough understanding of the applicable statutes, you can check this step off your list and move on to the next step.

Advice on how to pursue a tortious interference claim in court

• Research case law to determine the elements of a tortious interference claim.
• Consult with an attorney to discuss the merits of your case and the applicable legal standards.
• Draft a complaint that includes all the necessary elements of a tortious interference claim.
• Serve the complaint on the defendant.
• Participate in any court hearings or proceedings related to the tortious interference claim.

You know you can check this step off your list and move on to the next step when you have successfully filed your complaint and served it on the defendant.

Identify the applicable court

• Research the laws in your jurisdiction to determine what court is appropriate to file a tortious interference claim
• Consult a lawyer to assist with identifying the appropriate court to file your claim
• When you have identified the court that is most appropriate for your case, you can move on to the next step of filing a complaint.

File a complaint

• Prepare a complaint and make sure it meets all legal requirements of the applicable court.
• Fill out an application to the court for an injunction or other relief.
• Include all necessary documents with the complaint.
• File the complaint in the applicable court.
• Pay the filing fee for the complaint.
• Receive a case number from the court.

Once you have a case number, you can move on to the next step of serving the complaint to the defendant.

Serve the complaint to the defendant

• File a request for service with the court clerk - this will include the complaint and a summons
• Serve the defendant with the complaint and summons according to the rules of civil procedure in your state
• Track the service of process to ensure it was served properly
• File proof of service with the court clerk
• You can check this off your list and move on to the next step once the proof of service has been filed with the court clerk.

Prepare for trial

• Gather evidence to support your case
• Research the law related to tortious interference
• Undertake discovery, such as gathering deposition testimony and obtaining documents
• Prepare witnesses and exhibits for trial
• Prepare a trial brief outlining your argument
• When you have completed all of the above, you can move on to the next step of presenting your case in trial.

Present your case

• Research relevant cases and statutes related to tortious interference
• Draft a complaint for tortious interference
• Draft a memorandum of law in support of the complaint
• File the complaint and memorandum of law in court
• Serve the complaint upon the defendant
• When the defendant responds to the complaint, you will have completed this step and can move on to strategies for settlement negotiations

Strategies for settlement negotiations

• Consider the interests of both sides and identify areas of compromise
• Consider any potential counterarguments that the other side may present
• Carefully weigh the benefits and drawbacks of any settlement agreement
• Structure a settlement agreement that meets the needs of both sides
• Know when to compromise and when to walk away
• How you’ll know when you can check this off your list and move on to the next step: When both sides have agreed to a mutually satisfactory settlement agreement.

FAQ:

Q: What is the difference between tortious interference and defamation?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Tortious interference (also called intentional interference with contractual relations, or intentional interference with prospective economic advantage) is a civil wrong that occurs when one person intentionally damages someone else’s contractual or business relationships with a third party. This can include interfering with a contract, inducing one party to breach a contract, or interfering with one’s prospective economic advantage.

Defamation is an untrue statement which is communicated to another person, published to the public, and which causes damage to the reputation of the defamed person. It can be spoken (slander) or written (libel).

Q: Can I sue for tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Yes, you may be able to sue for tortious interference in certain circumstances. To be successful in a claim of tortious interference, you must be able to prove that your business relationship was intentionally interfered with by another person and that you suffered a financial loss as a result. You should also seek legal advice as soon as possible if you believe that you have been the subject of tortious interference.

Q: What are the common legal remedies for tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Common legal remedies for tortious interference include injunctions (court orders to stop the activity) and monetary damages (compensation for losses suffered). In some cases, punitive damages may also be awarded if the conduct of the interfering party was particularly egregious. Depending on the type of tortious interference and its severity, other remedies such as specific performance may also be available.

Q: What kind of evidence do I need to prove tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: To prove tortious interference, you need to provide evidence that your business relationship was intentionally interfered with by another person and that you suffered a financial loss as a result. This could include emails, text messages, phone records, affidavits from witnesses, bank statements and other relevant documents. It is important to keep any evidence which supports your claim of tortious interference in case it is needed later on in court.

Q: What are the differences between UK and USA legislation regarding tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: The main difference between UK and USA legislation regarding tortious interference is that in the UK it is considered to be an actionable wrong under civil law even without any contractual relationship being involved. In the US however, there must be an existing contractual relationship for it to be considered actionable. Furthermore, in the US only economic losses are compensable whereas in the UK both economic and non-economic losses can be compensated for.

Q: Do I need to prove intent for my claim of tortious interference to be successful?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Yes, in order for your claim of tortious interference to be successful you must prove that the interfering party acted with intent. Intent can be difficult to prove but if you can provide evidence that the other party had knowledge of your contractual or business relationships and deliberately acted in such a way as to cause damage then this can help your case.

Q: What are some defences against claims of tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Some defences against claims of tortious interference include lack of intent or knowledge on behalf of the intervening party; privilege (e.g., if an attorney has advised their client); necessity (i.e., if the intervening party had no choice but to act); self-defence; fair competition; and lack of causation (i.e., if there is no reasonable connection between the intervening party’s actions and any harm suffered). It is important to seek legal advice before attempting to use any defence against claims of tortious interference as each situation will vary depending on individual circumstances.

Q: How do EU regulations differ from those in the UK and USA when it comes to tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: EU regulations differ from those in both the UK and US when it comes to tortious interference due to differences in their respective legal systems. For example, EU regulations state that companies have an obligation not only to refrain from engaging in unfair practices but also actively promote fair competition practices within their own industry or sector. Furthermore, EU regulations also provide more protection for consumers than both UK and US laws when it comes to issues such as price fixing or other anti-competitive behaviour.

Q: Is it possible for someone to commit tortious interference without being aware of it?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Yes, it is possible for someone to commit tortious interference without being aware of it if they act negligently or recklessly when interfering with another’s contractual or business relationships. For example, if someone were to spread false information about another person’s products or services without doing their due diligence then this could constitute negligent or reckless behaviour which could lead to claims of tortious interference even if they were unaware of its consequences at the time.

Q: How does industry sector affect potential claims of tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Different industry sectors may have different regulations when it comes to potential claims of tortious interference due to their varying levels of competition and other factors such as technology advancements which may affect how people interact with each other professionally. For example, certain industries may have stricter regulations than others when it comes to anti-competitive behaviour while others may have more relaxed regulations due to their lower levels of competition.

Q: Are there any specific rules or laws relating to SaaS businesses when it comes to tortious interference?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Yes, there are specific rules and laws relating to SaaS businesses when it comes to potential claims of tortious interference which may differ from those applicable in other industries due to the unique nature of SaaS businesses and their reliance on technology platforms such as cloud computing or mobile applications. For example, certain jurisdictions may have laws which specifically address issues related to market dominance or predatory pricing which may not apply in other industries due to their varying levels of competition or technological advancements which require different regulations than those applicable in traditional industries.

Q: Is there any risk associated with failing to comply with laws related totortuous Interference 101?

Asked by [Make up a random first name] on [Make up a random date within 2022].
A: Yes, there is always risk associated with failingto comply with laws related totortuous Interference 101 as failureto do so can leadto serious legaland financial ramifications suchas hefty finesor even criminalprosecution dependingonthe jurisdictionin questionandthe severityof themisconductin question. Itis thereforevitalthat all partiesinvolvedin potentialclaimsof tortunsinterferenceare awareof their locallegislationand take steps toproperly complywithitin order toprotectthemselvesfrompotentialliabilityinthe future

Example dispute

Suing for Tortious Interference:

• The plaintiff must prove that the defendant had knowledge of the plaintiff’s contractual or business relationship, intended to disrupt it, and did so through improper means.
• The plaintiff must also show that the defendant’s actions caused damage, such as lost profits, loss of business opportunities, or decreased market value of the business.
• The plaintiff must provide evidence of the damages they have suffered as a result of the defendant’s tortious interference.
• The plaintiff should provide legal documents that prove the contractual or business relationship they had with the defendant.
• The plaintiff should also provide evidence that the defendant had knowledge of the relationship and intended to disrupt it.
• The plaintiff may also provide evidence of any improper means the defendant used to disrupt their contractual or business relationship.
• If the court finds that the defendant did indeed interfere with the plaintiff’s contractual or business relationship, it may award damages to the plaintiff.
• These damages could include lost profits, lost business opportunities, or decreased market value of the business.
• In some cases, the court may also award punitive damages, if it finds that the defendant acted maliciously or recklessly.

Templates available (free to use)

Warning Letter Tortious Interference

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