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Tortious Interference with Contractual Rights

Business and Commercial Torts : Tortious Interference with Contractual Rights

A cause of action for tortious interference with contractual rights arises from the intentional and unjustifiable interference with contractual relations.  In order for a plaintiff to maintain a cause of action for tortious interference with contractual rights, he or she must prove that a third party defendant interfered with a contract by influencing, inducing or coercing one of the parties to breach the contract, thereby causing injury to the other party.  The basis for the cause of action is the defendant's interference with a contractual agreement.  Therefore, if no contractual agreement exists, there is no liability.  However, the cause of action of tortious interference with a contract and the cause of action for tortious interference with advantageous business relationship are basically the same cause of action.  The only material difference is that in the first action there is a contract and in the second action there is only a business relationship.  Therefore, if there is no contract a plaintiff may be able to establish a cause of action for intentional interference with an advantageous business relationship since no enforceable contract is needed.

To establish a claim for tortious interference with contractual rights, a plaintiff should consult with an experienced West Palm Beach business lawyer that will establish the essential elements, which are:

 

  • The existence of a contract;

    The defendant's knowledge of the contract;

    The defendant's intentional procurement of the contract's breach;

    The absence of any justification or privilege; and

    The damages to the plaintiff resulting from the breach.

     

    A plaintiff must prove that the defendant's interference was the proximate cause of the plaintiff's damages. Therefore, without proof of proximate cause, a cause of action for the intentional interference with a contractual relationship cannot be sustained. Additionally, a cause of action for tortious interference with a contractual relationship can include attempts to alter or change only a single contractual provision, whether the attempt is to extinguish the provision entirely or simply to alter it, as long as the effect is to interfere with benefits otherwise due to the plaintiff. However, if it is proven that a party to the contract was predisposed to breach the contract without the inducement of the defendant, there will be no liability. On the other hand, the fact that a plaintiff has a cause of action for breach of contract against the other party to the agreement, or has obtained a judgment or settlement for that breach, is not a viable defense. Under Florida law, a plaintiff may maintain an action against a third party for tortious interference and a separate action against another party for breach of contract.

    A cause of action for tortious interference with advantageous business relationship may have many complex issues. Therefore, you should consult with an experienced West Palm Beach business lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.

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