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Wrongful Interference With A Business Relationship Example In Los Angeles
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Multi-State
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Los Angeles
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US-000303
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FAQ
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.
Some examples of improper conduct are the use of fraud or misrepresentation, trade libel, trademark infringement, blackmail, economic pressure, initiating civil lawsuits or criminal prosecutions, and even physical violence.
A more thorough explanation: Interference with a business relationship is when someone intentionally disrupts or damages a business relationship between two parties. This can be done through various means, such as spreading false information, making threats, or offering bribes.
Tortious interference with a business relationship 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.
Examples of tortious interference include inducing a third party to breach a contract, spreading false information about a business or product, or stealing confidential business information.
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.
Tortious interference with prospective or anticipated contractual relations is defined in Section 766B of the Restatement (Second) of Torts as: “Inducing or otherwise causing a third person not to enter into or continue the prospective relation or (b) preventing the other from acquiring or continuing the relation.”
More info
Both California contract law and tort law allow for legal action when a third party wrongfully interferes with a contract or ongoing business relationship. Tortious interference refers to the action of a third party who causes harm to an ongoing business arrangement.Our business litigation lawyers and attorneys have helped numerous businesses who have become victims of interference with contractual and business relations. When a person or business intentionally damages a business relationship or a contract you have with another business that caused or may cause economic harm. If a third party unfairly interferes with a business contract or relationship and causes damage, a tortious interference claim may be a viable option. California courts have long recognized causes of action for tortious interference with contract and tortious interference with prospective economic advantage. This blog talks about the Cal jury instructions and what a Plaintiff has to prove to meet their "burden of proof" in a civil case. If the defendant was a competitor regarding the business involved in the contract, his interference with the contract may not be improper. An example may include a competitor breaking the law to gain an unfair advantage causing severe harm to yourself or your business. However, that case dealt with whether a party can be found liable for conspiracy to interfere with their own contract.