Proving there was intentional interference with a business relationship

| Apr 7, 2021 | Business Litigation |

Businesses in Michigan can be competitive and are trying to perform at a level that sets them apart from their competition. This could be by having the best products, using the best materials, having the best talent working for them and in other ways as well. In order to accomplish these goals, businesses need to enter into various contracts with suppliers, buyers and employees as well. These contracts are important for the business as well and they expect everyone to honor the terms of the contracts.

As there is competition though others may break the contracts or sign contracts with other companies that are more advantages to them. This by itself is not a problem, but sometimes the reasons contracts are broken are due to the actions of the company which received the new contract. In some of these situations the action are intentional as well and if that is true the other company could be held liable for tortious interference with a business relationship.

Factors to prove tortious interference

It is not automatically tortious interference if people entice people to leave a business to come their business though. There are certain elements that must be proven first. These elements are:

  • There has to be a legitimate contract between the third party and the first company
  • The second company must know about the contract
  • The second company must interfere with the contract and do so intentionally
  • The interference must be improper and cause economic damage to the first company.

Companies rely on their various contracts in order to run their business. They can provide consistency for the business and can provide good deals or great employees. Other companies may want these contracts though. They may purposely interfere with them and that can be very detrimental to the company. If the interference meets all the elements stated above the company that was harmed may be entitled to compensation. Experienced attorneys understand these complex matters and may be able to guide one through it.