Tortious Interference

TORTIOUS INTERFERENCE: PROTECTING YOUR BUSINESS FROM UNLAWFUL DISRUPTIONS

Tortious interference occurs when one party intentionally disrupts a contractual or business relationship, causing harm to another. In Virginia, tortious interference is recognized as a serious offense that can lead to substantial financial damage. At Fox & Moghul, we have extensive experience litigating complex tortious interference claims in both Virginia and Washington, D.C., ensuring that our clients receive the compensation they deserve for unlawful interference with their business relationships.

There are several types of interference torts recognized under Virginia law, each with specific elements that must be proven. These torts include intentional interference with existing contracts, prospective contracts, and business expectancies or economic advantage. Below is a breakdown of the various forms of tortious interference under Virginia law:

Key Types of Tortious Interference

Type of Interference Key Elements
Intentional Interference with Existing Contracts (Not Terminable at Will) 1. Existence of a valid contractual relationship or business expectancy; 2. Knowledge of the relationship or expectancy by the interferer; 3. Intentional interference causing breach or termination of the relationship; 4. Resulting damage to the disrupted party.
Intentional Interference with Contracts Terminable at Will 1. Existence of a valid contractual relationship or business expectancy; 2. Knowledge of the relationship or expectancy by the interferer; 3. Intentional interference causing breach or termination of the relationship; 4. Interference must be through improper methods; 5. Resulting damage to the disrupted party.
Intentional Interference with Prospective Contracts 1. Existence of a contract expectancy; 2. Knowledge of the expectancy by the interferer; 3. Intentional interference with the expectancy; 4. Use of improper methods to interfere; 5. Damage as a result of disruption.
Intentional Interference with Prospective Business or Economic Advantage 1. Existence of a business relationship or expectancy with a probability of future economic benefit; 2. Defendant’s knowledge of the expectancy; 3. Reasonable certainty that, absent the defendant’s intentional misconduct, the plaintiff would have realized the expectancy; 4. Damages from the interference. Additional elements: 1. Competitive relationship between the parties; 2. Contact by the defendant with the source of the plaintiff’s business expectations.

Real-World Examples of Tortious Interference

Fox & Moghul has successfully handled numerous tortious interference cases, helping clients recover damages for business disruptions caused by competitors, partners, or third parties.

  • Case Example 1: Interference with Existing Contracts. In one notable case, Fox & Moghul represented a Northern Virginia real estate development company whose contracts with key vendors were intentionally disrupted by a competitor. The competitor used false statements and coercion to induce the vendors to break their agreements. Fox & Moghul aggressively litigated the matter, proving improper methods were used by the competitor, and successfully recovered substantial damages for our client, including lost profits and reputational harm.
  • Case Example 2: Contract Terminable at Will. In another case, Fox & Moghul represented a professional services firm whose contract with a major client was terminable at will. A former employee unlawfully induced the client to terminate the contract using confidential information obtained during their employment. We filed suit, alleging improper methods and recovered damages that included not only lost profits but also costs associated with finding a replacement client.

Proving Tortious Interference

To succeed in a tortious interference claim, the plaintiff must demonstrate the following elements:

  1. Existence of a Contract or Expectancy: The plaintiff must prove the existence of a valid contract or a business expectancy with a reasonable probability of future economic benefit.
  2. Knowledge of the Contract or Expectancy: The defendant must have known about the contract or expectancy.
  3. Intentional Interference: The defendant must have intentionally disrupted the contract or business expectancy.
  4. Improper Methods: In some cases, such as with contracts terminable at will or prospective contracts, the plaintiff must prove that the defendant used improper methods to interfere. These can include fraud, intimidation, defamation, or misuse of confidential information.
  5. Damages: The plaintiff must have suffered financial harm as a result of the interference.

Remedies for Tortious Interference

Victims of tortious interference are entitled to various remedies, including:

  • Compensatory Damages: These damages are designed to compensate the plaintiff for the financial losses caused by the interference, including lost profits and reputational damage.
  • Punitive Damages: In cases involving malicious or egregious misconduct, the court may award punitive damages to punish the defendant and deter future wrongdoing.
  • Injunctive Relief: In some cases, the court may issue an injunction preventing the defendant from further interfering with the plaintiff’s business relationships or contracts.

Why Choose Fox & Moghul for Tortious Interference Litigation?

Fox & Moghul has a proven track record of success in tortious interference cases. We understand the significant impact that unlawful interference can have on your business, and we are dedicated to helping you recover the compensation you deserve. Our team of experienced litigators is recognized for its strategic approach, attention to detail, and ability to secure favorable outcomes in complex business litigation.

With accolades such as being named among America’s Top 100 Civil Defense Litigators and Virginia’s Go-To Business Lawyers, Fox & Moghul is the law firm you want on your side in high-stakes business tort cases.

Contact Fox & Moghul Today

If you believe your business has been the victim of tortious interference, contact Fox & Moghul at 703-652-5506 to schedule a consultation. Our experienced attorneys will evaluate your case, develop a strategy, and fight to protect your business interests.

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