Tortious Interference with Business Expectancy

There are 5 required elements to a tortious interference with contract claim: 

(1) the existence of a valid and enforceable contract between two parties;

(2) a third party’s awareness of that contractual relationship; 

(3) that third party’s intentional and unjustified inducement of one party to breach the contract; 

(4) a resulting breach caused by that third party’s conduct; and 

(5) damages.

Wrongful Conduct

Wrongful or illegal conduct must be proven to prevail in tortious interference claim.  For example, defaming a product or a seller’s services with false negative characteristics, or a breach of contract resulting from a third party’s bribery, fraud, use of criminal extortion or violence, unfounded litigation, deceit or conduct that violates antitrust laws may give rise to a tortious interference claim as well.  However, conduct consistent with aggressive competition, such as ending a contractual relationship or discontinuing a product where the discontinuance or termination is not accompanied by wrongful or illegal conduct designed to cause the plaintiff financial harm, is not an act of tortious interference. 

Privileged Interference

There are several privilege-based defenses to tortious interference claims. For example, when the third party is motivated to protect his or her substantial interest based on an objectively reasonable and good faith belief that his or her interest will be harmed by performance of the contract and the third party does not employ improper, deceptive, or otherwise unjust means to interfere. 

Constitutional Rights

Additionally, a party exercising its constitutional free speech rights to justifiably, and in good faith, express a negative opinion cannot give rise to a tortious interference with contract claim.

Malice

Malice is the intent or desire to injure another. As it relates to tortious interference with a contractual relationship, a plaintiff may rebut a defendant’s defenses by showing that the defendant had a desire to harm plaintiff that was unrelated to legitimate interests. A malice allegation must be supported by facts, or it will fail to negate the claimed defense. 

If you think that your contract has been tortiously interfered with, or you have been accused of tortious interference, contact Cook, Craig and Francuzenko. Contact us today to learn more.