What is tortious interference with an advantageous business relationship or contract?
Tortious interference with an advantageous business relationship or contract is a legal claim that arises when one party intentionally disrupts or damages another party’s business relationship or contract with a third party to the interfering party’s advantage. This type of interference is considered a tort or a civil wrong and can result in an award of damages to the injured party. Florida law recognizes two forms of relationships that can be subject to tortious interference: contractual business relationships and advantageous business relationships. Parties establish contractual business relationships through various contracts, including non-disclosure agreements, non-compete agreements, and sales agreements. Advantageous business relationships are harder to describe but can include scenarios like a sales relationship with a customer or a supplier.
Examples of tortious interference include inducing a third party to breach a contract, spreading false information about a business or product, or stealing confidential business information.
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What legal issues typically arise concerning tortious interference with an advantageous business relationship or contract?
The following disputes are among the most common to tortious interference with an advantageous business relationship or contract:
- Proof of intent: Proving that the defendant intended to interfere is complex and may require evidence of the defendant’s motives and actions.
- Causation: The plaintiff must also prove that the defendant’s actions caused harm to their business relationship or contract, which requires affirmative evidence of the defendant’s actions.
- Statute of limitations: The parties may dispute when the statute of limitations began to run on the claim.
What laws relate to tortious interference with an advantageous business relationship or contract in Florida?
Florida has no specific statute that governs tortious interference with an advantageous business relationship or contract. Instead, the common law, a body of law created by judicial decisions and precedent rather than legislation, governs this claim. However, Section 95.11(4)(g) of the Florida Statutes identifies a four-year statute of limitations for tortious interference with an advantageous business relationship or contract, which begins when the plaintiff becomes (or should have become) aware of the last element of the defendant’s alleged tortious interference.
Florida courts have identified and clarified the requirements to plead tortious interference successfully. Tortious interference actions are applicable in many industries, including retail, technology, manufacturing, construction, employment, and service. One example includes James Crystal Licenses, LLC v. Infinity Radio Inc., where the Florida court found tortious interference after a competitor hired an employee before the negotiation period for her prior employment expired. James Crystal Licenses, LLC v. Infinity Radio Inc., 43 So. 3d 68 (Fla. 4th DCA 2010). The court awarded both compensatory and punitive damages. Id.
What is required to prove a case of tortious interference with an advantageous business relationship or contract in Florida?
The elements of tortious interference with an advantageous business relationship or contract are:
- The existence of a business relationship or contract under which the plaintiff has legal rights (but which is not necessarily evidenced by an enforceable contract);
- The defendant’s knowledge of the relationship or contract;
- An intentional and unjustified interference with the business or contractual relationship by the defendant; and
- Damage to the plaintiff as a result of the interference.
When a set of facts is appropriate to meet the requirements of tortious interference with an advantageous business relationship or contract, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to seek appropriate remedies, such as:
- Injunctive relief
- Compensatory damages
- Punitive damages
To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.
What are common defenses to tortious interference with an advantageous business relationship or contract in Florida?
The primary defenses to tortious interference with an advantageous business relationship or contract in Florida include:
- Lack of intent: If the defendant did not intentionally interfere with the plaintiff’s business relationship or contract, there could be no tortious interference.
- Truth of statements: If the defendant made factual statements about the plaintiff’s business or product, their actions might not be considered tortious.
- Defendant acted in their best interest: There can be no interference with a contractual relationship where the defendant acted to safeguard or promote their financial or economic interest.
- Absence of harm: If the plaintiff cannot prove that the defendant’s actions caused harm to their business relationship or contract, the claim may fail.
- Legal justification: If the defendant’s actions were legally justified, such as in the case of lawful competition, they might not be considered tortious.
- Statute of limitations: The defendant may argue that the statute of limitations has expired and that the claim is barred. In Florida, the statute of limitations is four years.
When defending against a tortious interference claim, one core focus could be emphasizing a lack of intent to interfere with a relationship or contract. To prove this, the defendant could use evidence like proof of legitimate business practices, including competition or lack of knowledge about the contract.
Another strategy to defend against this claim is to claim a lack of causation and damages resulting from the alleged behavior. The plaintiff must have suffered some concrete damages to succeed in this claim. Evidence showing something to the contrary could include continued business successes or contractual relationships.
To see what defenses may be available for your unique situation, please contact our office to set up your initial consultation.
Have more questions about a tortious interference with an advantageous business relationship or contract-related situation?
Crucially, this overview of tortious interference with an advantageous business relationship or contract does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.
Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.
Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.
If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.
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