What You Need to Know About Tortious Interference
Tortious interference is a critical concept, and understanding it is essential for businesses and individuals who may face legal disputes in the course of their professional activities. In civil litigation, claims of tortious interference can arise when a third party unlawfully interferes with contractual or business relationships, leading to damages.
Whether you're a business owner, employee, or just someone facing legal concerns, it's important to know how tortious interference works, its elements, and how it can impact you.
Here at Smid & Merchant, we do our best to educate our clients and represent them as best we can. Let’s take a deeper look into what you should know about tortious interference.
What Is Tortious Interference?
Tortious interference occurs when one party intentionally disrupts another party’s contractual or business relationships, resulting in harm. It typically involves two types of interference: interference with a contract and interference with a business relationship. In either case, the key to a successful claim is proving that the interference was not only intentional but also wrongful.
Tortious interference claims are particularly relevant in civil litigation, where individuals or businesses seek to recover damages for the harm caused by another's wrongful actions.
Under Indiana law, tortious interference with a contract occurs when someone intentionally and without justification interferes with the performance of an existing contract between two parties. Similarly, interference with a business relationship involves disrupting an existing or potential business relationship or contract.
The goal in either case is to demonstrate that the interference was intentional, improper, and caused actual harm, such as financial loss or reputational damage.
The Core Elements of Tortious Interference
To succeed in a tortious interference case, certain elements must be proven in civil litigation. While every case is different, these elements generally form the backbone of a claim:
Existence of a valid contract or business relationship: The first requirement is that a valid contract or business relationship must exist. For interference with a contract, there must be an enforceable agreement between two parties. For interference with a business relationship, a relationship or expectation of future business dealings is required.
Knowledge of the relationship: The defendant must be aware of the existence of the contract or business relationship. This can include knowledge gained directly or indirectly, such as through communication or observation.
Intentional interference: The defendant must intentionally interfere with the contract or relationship. This doesn’t mean they must have malicious intent; it’s sufficient if their actions were aimed at disrupting the relationship without a legitimate reason.
Improper or unjustified actions: The interference must be wrongful. Indiana courts have established that not all interference is actionable. The defendant's actions must be improper or unjustifiable, meaning they don’t serve any valid purpose.
Causation of harm: Finally, the plaintiff must show that the interference caused harm. This harm could be financial, reputational, or related to business opportunities lost because of the interference.
Proving these elements is essential when filing a tortious interference claim in civil litigation. If successful, the party who suffered the harm can pursue damages for the loss they’ve incurred due to the wrongful interference.
Defenses to Tortious Interference Claims
Defendants in tortious interference cases may raise several defenses to contest the claims. Some common defenses include:
Justification or privilege: The defendant may argue that their actions were justified, such as when they were acting within their rights to protect their own interests. For example, a competitor might argue that they were exercising their right to compete for business, even if it meant interfering with an existing contract or relationship.
Lack of intent: The defendant might assert that they did not intend to interfere with the contract or relationship. Proving intent is crucial, and if the defendant can show that they didn’t act with the purpose of disrupting the relationship, it may undermine the plaintiff’s case.
No valid relationship: In some cases, the defendant may argue that the plaintiff did not have a valid contract or business relationship in the first place. Without a legally binding agreement or reasonable expectation of a future business relationship, there can be no tortious interference.
Absence of harm: The defendant may claim that no harm was caused to the plaintiff. If the plaintiff cannot demonstrate actual damages or losses resulting from the interference, the court may dismiss the claim.
Each case is unique, and the specific defenses will depend on the facts surrounding the interference. Understanding these potential defenses can help individuals or businesses prepare their cases or respond effectively to a claim in civil litigation.
How Tortious Interference Affects Businesses
Tortious interference can have serious consequences for businesses. If one company intentionally interferes with another's contract or business relationships, it can lead to financial losses, damage to reputation, and loss of clients or customers. For example, if a competitor persuades one of your customers to break a contract, the loss of that client could be devastating to your business.
Beyond the immediate financial impact, tortious interference claims can create long-lasting damage to a business’s reputation. Potential clients, suppliers, or investors may view a business involved in legal disputes as untrustworthy or unreliable. This can make it harder to form new relationships, secure future contracts, or maintain current business operations.
Fortunately, Indiana law provides businesses with the legal tools to address tortious interference. If your business is affected by such interference, you can take legal action to recover damages and protect your interests. In civil litigation, this could involve suing for lost profits, reputational damage, or other losses directly related to the interference.
Taking Legal Action for Tortious Interference
If you believe you’ve been the victim of tortious interference, it's important to take the right steps to protect your rights. The first step is to consult with an experienced lawyer who understands Indiana law and civil litigation. A lawyer can help you assess the strength of your case and guide you through the legal process.
The process of filing a tortious interference claim involves several key steps:
Consultation: During the initial consultation, a lawyer will review the details of the interference, your contract or business relationships, and the harm caused. Based on this information, they can advise you on your legal options.
Filing the claim: If you decide to move forward with the claim, the lawyer will file a complaint with the appropriate court. The complaint will outline the facts of the case, the elements of tortious interference, and the damages you’re seeking.
Discovery and evidence collection: Both parties will have the opportunity to exchange evidence, such as documents, communications, and witness testimonies, to support their case. This stage is critical to building a strong claim and defending against potential challenges.
Negotiation or trial: In many cases, parties will attempt to resolve the dispute through negotiation or mediation to avoid a lengthy trial. However, if a resolution cannot be reached, the case may proceed to trial, where a judge or jury will determine whether tortious interference occurred and what damages are owed.
Throughout this process, it’s important to have an experienced lawyer by your side to help you understand the intricacies of civil litigation. With the right legal representation, you’ll be in the best position to pursue justice and recover damages.
How Our Team Can Help
At Smid & Merchant, we understand how challenging it can be to deal with tortious interference claims. Our experienced lawyers are well-versed in Indiana’s laws regarding civil litigation and are committed to helping individuals and businesses seek justice for the harm caused by wrongful interference.
We take a strategic approach to every case, striving to help our clients understand their options and feel supported throughout the legal process.
Whether you’re looking to file a claim or defend against an accusation of tortious interference, we’re here to help. We’ll work tirelessly to protect your rights and help you receive compensation.
If you’ve experienced tortious interference in your business or personal affairs, don’t hesitate to reach out to us at Smid & Merchant for a consultation. Let us put our experience to work for you.