Tortious
interference, also known
as intentional interference with contractual relations, in the common
law of torts, occurs when a person intentionally damages the plaintiff’s
contractual or other business relationships. This tort is broadly divided into two
categories, one specific to contractual relationships (irrespective of whether
they involve business), and the other specific to business relationships or
activities (irrespective of whether they involve a contract).
Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The classic example of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.
Tortious interference with business relationships occurs where the tortfeasor acts to prevent the plaintiff from successfully establishing or maintaining business relationships. This tort may occur when a first party's conduct intentionally causes a second party not to enter into a business relationship with a third party that otherwise would probably have occurred. Such conduct is termed tortious interference with prospective business relations, expectations, or advantage or with prospective economic advantage.
In either of the above situations, the tortfeasor's conduct must be intentional. There is no cause of action for merely negligent interference with the performance of a contract.
Although the specific elements required to prove a claim of tortious interference vary from one jurisdiction to another, they typically include the following:
The first element may, in employment-at-will jurisdictions, be held fulfilled in regards to a previously unterminated employer/employee relationship.
Typical legal damages for tortious interference include economic losses, if they can be proven with certainty, and mental distress. Additionally punitive damages may be awarded if malice on the part of the wrongdoer can be established.
Equitable remedies may include injunctive relief in the form of a negative injunction that would be used to prevent the wrongdoer from benefiting from any contractual relationship that may arise out of the interference, i.e., the performance of a singer who was originally contracted with the plaintiff to perform at the same time.
http://en.wikipedia.org/wiki/Tortious_interference
Description
Tortious interference with contract rights can occur where the tortfeasor convinces a party to breach the contract against the plaintiff, or where the tortfeasor disrupts the ability of one party to perform his obligations under the contract, thereby preventing the plaintiff from receiving the performance promised. The classic example of this tort occurs when one party induces another party to breach a contract with a third party, in circumstances where the first party has no privilege to act as it does and acts with knowledge of the existence of the contract. Such conduct is termed tortious inducement of breach of contract.
Tortious interference with business relationships occurs where the tortfeasor acts to prevent the plaintiff from successfully establishing or maintaining business relationships. This tort may occur when a first party's conduct intentionally causes a second party not to enter into a business relationship with a third party that otherwise would probably have occurred. Such conduct is termed tortious interference with prospective business relations, expectations, or advantage or with prospective economic advantage.
In either of the above situations, the tortfeasor's conduct must be intentional. There is no cause of action for merely negligent interference with the performance of a contract.
Typical Examples
- Tortious interference of business.- When
false claims and accusations are made against a business or an
individual's reputation in order to drive business away.
- Tortious interference of contract.- When an
individual uses "tort" (a wrongful act) to come between two
parties' mutual contract.
Elements
Although the specific elements required to prove a claim of tortious interference vary from one jurisdiction to another, they typically include the following:
- The existence of a contractual relationship
or beneficial business relationship between two parties.
- Knowledge of that relationship by a third
party.
- Intent of the third party to induce a party
to the relationship to breach the relationship.
- Lack of any privilege on the part of the
third party to induce such a breach.
- The contractual relationship is breached.
- Damage to the party against whom the breach
occurs.
The first element may, in employment-at-will jurisdictions, be held fulfilled in regards to a previously unterminated employer/employee relationship.
Damages
Typical legal damages for tortious interference include economic losses, if they can be proven with certainty, and mental distress. Additionally punitive damages may be awarded if malice on the part of the wrongdoer can be established.
Equitable remedies may include injunctive relief in the form of a negative injunction that would be used to prevent the wrongdoer from benefiting from any contractual relationship that may arise out of the interference, i.e., the performance of a singer who was originally contracted with the plaintiff to perform at the same time.
http://en.wikipedia.org/wiki/Tortious_interference
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