Tortious Interference with Business Relations in Texas

October 29, 2009

Businesses that employ unfair tactics to interfere with another company's business in Texas may be liable for tortious interference with business relations, a tort under state law.

October 29, 2009 /24-7PressRelease/ -- Tortious Interference with Business Relations in Texas

Article provided by John McDuff, Attorney at Law
Visit us at http://www.johnmcduff.com/

It is one thing for companies to compete for business with one another fairly. But when businesses employ unfair tactics to interfere in another company's business, it becomes something else entirely.

Businesses that use such methods in Texas may be liable for tortious interference with business relations, a tort -- or civil wrong -- under state law. A party may tortiously interfere with a current contract between two businesses or tortiously interfere with a potential contract between two businesses.

What Activities are Generally Considered to be Tortious Interference?

Generally, tortious interference occurs when a party intentionally acts to cause another company to breach a contract. Tortious interference also occurs when a party prevents a company from securing a contract. Claims for tortious interference may arise when:
-A party causes a company to breach its lease, and causes the company to lease from the party
-A party causes customers to breach their contracts with another company, and recruits those customers to contract with the party
-A party causes a customer to cease entertaining a contract with a competitor by slandering the president of the competitor
-A party causes a company to cease negotiating a contract with a competitor by telling lies about the quality of the competitor's product
-A party causes an employee to breach its employment contract with another company and violate a non-disclosure agreement with respect to trade secrets

Texas courts have recognized tortious interference claims for most any kind of business relationship and most any kind of potential business relationship. Please note that there are two forms of tortious interference claims. On the one hand, some of these examples state wrongdoing in the process of other companies planning to do business with each other. The wrongdoing is a requirement for liability when companies are just competing and do not have an existing contract with another company. These are "potential contract claims." On the other hand, some of these examples identify tortious interference without any wrongdoing. When a contract exists, no wrongdoing is necessary. These are "contract claims."

Proving a Claim for Tortious Interference

Claims for tortious interference with business relationships may take one of two forms, as discussed. In the "contract claim," you have the burden of proving certain facts to prove your case. It must be shown that:
-There was a contract
-The defendant intentionally interfered with the contract
-The defendant's interfering actions caused the injury
-The defendant's interfering actions caused damages

The elements for a "potential contract claim" (tortious interference with a prospective business relationship) differ in a few respects. It must be shown that:
-There was a business relationship that had not yet been reduced to a contract, or there was a business relationship where there was continuing activity that was not formalized by a contract
-The defendant intentionally interfered with that business relationship
-The defendant's acts of interference were actionable on their own, as independent torts
-The defendant's interfering actions caused the injury
-The defendant's interfering actions caused damages

The whole point of this is to recover your damages, and whatever other relief the law may provide. You may recover for the benefits of a contract that you lost, such as lost profits. And the loss of the contract could damage you in other ways, as well. Also, you can recover damages from a personal injury, such as lost wages, mental anguish, and injury to your reputation, when wrongful acts occur during the interference. Last, tortious interference is just that -- a tort. As a result, you may recover punitive damages.

Is the Interference Ever Justifiable?

In some circumstances, a defendant may have a valid "justification" for the company's acts or a "privilege," each of which prevents the recovery of your damages.

For example, a justification or privilege for a defendant's actions can be that the defendant was exercising the defendant's own legal rights. A defendant may think it has rights, but it turns out that the defendant does not have those rights. These acts are also justified.

In determining whether the defendant has a valid defense for its actions, the court will examine the defendant's motive in committing the act, the nature of the defendant's conduct and the interests the defendant sought to promote, among other factors.

Conclusion

If you think that you are the victim of tortious interference, or are being accused of tortious interference unjustly, contact an experienced attorney today.

Article provided by John McDuff, Attorney at Law
Visit us at http://www.johnmcduff.com/

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