Wrongful Interference With A Business Relationship Example In Los Angeles
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FAQ
A tortious interference lawsuit allows you to sue the non-contracting person and recover damages for intentional or negligent acts that caused economic harm. To establish that tortious interference occurred, you must prove that: There was a valid contract between you and the other party.
Understanding Wrongful Interference Wrongful Interference with an Existing Contract: This happens when a third party knowingly causes one party to breach a legally enforceable contract. For example, persuading a supplier to break an exclusive distribution agreement to favor a competitor qualifies as interference.
Broadly speaking, interference in a legal setting is wrongful conduct that prevents or disturbs another in the performance of their usual activities, in the conduct of their business or contractual relations, or in the enjoyment of their full legal rights .
Some examples of actionable interference may include convincing a shared supplier to renege on a contract or a third party interrupting the sale of property to a business.
Explanation. Wrongful interference with a business relationship requires three elements: 1) the third party must have knowledge of the business relationship, 2) the third party must act intentionally with the purpose of disrupting that relationship, and 3) the interference must be wrongful or improper.
An example is when a tortfeasor offers to sell a property to someone below market value knowing they were in the final stages of a sale with a third party pending the upcoming settlement date to formalize the sale writing. Such conduct is termed "tortious interference with a business expectancy".
One of the best examples of interference is demonstrated by the light reflected from a film of oil floating on water. Another example is the thin film of a soap bubble (illustrated in Figure 1), which reflects a spectrum of beautiful colors when illuminated by natural or artificial light sources.
Courts commonly find that a defendant may not be liable for tortious interference if it proves a defense of one of the following: 1) the protection or exercise of a legal right or interest; 2) the protection of the interests of a third person, including agents acting for the protection of their principals, trustees for ...
Tortious interference with business relationship is a similar claim that typically arises when no valid contract exists and a defendant intentionally interferes with the business relationship between a third party and the plaintiff, resulting in damages to the plaintiff.
As an example, someone could use blackmail to induce a contractor into breaking a contract; they could threaten a supplier to prevent them from supplying goods or services to another party; or they could obstruct someone's ability to honor a contract with a client by deliberately refusing to deliver necessary goods.
