How Can I Prove Tortious Interference with a Contract?

 Posted on October 14, 2024 in Commercial Litigation

An important part of running a business is forging strong relationships with employees, suppliers, vendors, and partners. However, when businesses get competitive, they can sometimes interfere with those relationships. When a person or company inappropriately disrupts someone else’s business relationship with a third party it is called tortious interference. If that interference causes financial harm, the affected business may bring a legal claim against the interferer, referred to as the defendant.

There are two types of tortious interference: 

• Tortious interference with prospective economic advantage
• Tortious interference with contract

In this article, we will explore what tortious interference with contract is, how to prove it, and how to protect your business against such a threat. Consult an Illinois commercial litigation attorney for more details or to file a claim for tortious interference.

What Is Tortious Interference with Contract?

Tortious interference with contract is when someone knowingly and unjustifiably causes a breach of contract between a business and a third party. For example:

• Company A has an exclusive contract to sell a supplier’s products. Company B learns about the contract and offers the supplier better terms, causing a breach of contract.
• Company A hires an executive under a three-year contract with a non-compete clause. One year in, Company B knowingly entices the executive to break the contract with a better offer and the employee accepts.
• Company A signs a contract for a partnership with another brand. After hearing about the contract, Company B convinces the brand to cancel the contract.

Keep in mind that not all interference is tortious. Competition is encouraged and it is legal for one company to lawfully poach another’s employees, customers, vendors, or partners. When it is done unlawfully, unfairly, or fraudulently, however, it can be considered tortious.

How Can I Prove Tortious Interference with Contract?

If you have suffered financial harm because of tortious interference with contract, you may be able to bring a claim for damages. However, you must first prove the following:

• There was a valid and existing contract between you and a third party.
• The defendant had knowledge of that contract.
• The defendant, intentionally and without justification, convinced the third party to breach the contract.
• The breach of contract is a direct result of the defendant’s interference.
• That interference caused you economic damage.

How Can I Protect My Business from Tortious Interference?

The best way to protect your business from tortious interference is to hire a qualified and experienced attorney. He or she can provide you with the necessary legal advice on how to prevent such threats and draft strong, robust contracts to protect your commercial interests. And if you do suffer economic damage from tortious interference, you will have an aggressive attorney to bring a claim on your behalf.

Contact a Chicago, IL Commercial Litigation Attorney

Teller, Levit & Silvertrust, P.C. has been providing excellent legal services for over a century. Our clients around the globe benefit from our extensive experience in commercial litigation law and our personalized, hands-on approach. Let our attorneys build you a strong legal strategy. Call 312-922-3030 to speak with a Cook County, IL tortious interference lawyer today.