Most of the time, a business dispute involves another entity with whom you have an active relationship or contract – but not always. There are times when a third party will intentionally interfere with a business relationship between two entities.
If this happens to you, both your reputation and your wallet can take a hit. In some cases, these kinds of actions fall under a legal concept known as “tortious interference” and can be actionable.
When do you have a claim?
In general, to have a valid claim for tortious interference with your business, the following must be true:
- You have an existing business relationship or contract with another entity.
- Some third party is aware of this relationship between you and the other entity.
- This third party intentionally interferes with that relationship for some reason.
- Their interference disrupts your business and causes measurable harm.
For example, imagine that you have a small coffee shop, and you have a contract with a local baker to provide your shop with special pastries, around which you have built a significant customer base. Another cafe opens up, and they want to poach your business. They go to the baker and offer them additional money to break their exclusive contract with you and sell to them instead. A portion of your customers end up following their favorite baked goods to the new place, depriving you of revenue.
Tortious interference laws help protect businesses from unfair tactics by competitors or other third parties. If someone has intentionally and unfairly damaged your business relationship or contracts, you may have the right to take legal action. Legal guidance can help you protect your business interests.