How To Prove A Texas Tortious Interference With Prospective Business Relations Claim
In Texas, a claim of Tortious Interference With Prospective Business Relations is defined as:
Tortious interference occurs when a third party intentionally and improperly interferes with a business relationship or with the performance of the terms of a contract.
It simply means:
When a third party tries to disrupt or damage a contract or business relationship.
There are 5 elements of the claim:
- Element 1. There was a reasonable probability that the plaintiff would have entered into a business relationship with a third party. This means there was a good chance that the person suing would have started a business deal with someone else if it weren’t for the wrongful actions of the defendant interfering with that opportunity.
Facts that might support this element look like:
* The plaintiff had ongoing negotiations with a third party regarding a potential partnership that showed mutual interest and intent to proceed.
* Prior to the interference, the plaintiff had received positive feedback from the third party about a proposed business venture.
* The plaintiff had previously established a successful working relationship with the third party, indicating a likelihood of future collaboration.
* The third party had expressed a clear intention to finalize a contract with the plaintiff before the interference occurred.
* The plaintiff had invested significant time and resources into developing the business relationship with the third party, demonstrating a commitment to its success. - Element 2. The defendant either acted with a conscious desire to prevent the relationship from occurring or knew the interference was certain or substantially certain to occur as a result of the conduct. The defendant either wanted to stop the business relationship from happening or was aware that their actions would likely cause that relationship to fail.
Facts that might support this element look like:
* The defendant explicitly stated their intention to disrupt the business relationship during a conversation with a mutual acquaintance.
* The defendant had prior knowledge of the plaintiff’s negotiations and took deliberate actions to undermine them.
* The defendant sent misleading information to the plaintiff’s potential business partner, knowing it would likely deter the partnership.
* The defendant had a history of sabotaging similar business relationships in the past, indicating a pattern of intentional interference.
* The defendant was aware that their actions would likely lead to the termination of the plaintiff’s prospective business deal. - Element 3. The defendant’s conduct was independently tortious or unlawful. This means that the defendant acted in a way that was wrong or illegal on its own, separate from interfering with the plaintiff’s business opportunities, which helps to show that their actions were harmful and unjustified.
Facts that might support this element look like:
* The defendant knowingly made false statements about the plaintiff’s business practices to potential clients, damaging the plaintiff’s reputation.
* The defendant engaged in a campaign of harassment against the plaintiff’s employees, causing them to leave their positions and disrupting business operations.
* The defendant intentionally breached a contract with a third party to prevent them from doing business with the plaintiff.
* The defendant used confidential information obtained through improper means to undermine the plaintiff’s competitive advantage in the market.
* The defendant threatened legal action against potential clients of the plaintiff, creating fear and uncertainty that deterred business relationships. - Element 4. The defendant’s interference proximately caused the plaintiff injury. The defendant’s actions directly led to the plaintiff suffering harm, meaning that the interference was a key reason why the plaintiff lost a potential business opportunity or relationship.
Facts that might support this element look like:
* The defendant made false statements about the plaintiff’s business practices to potential clients, leading to lost contracts.
* After the defendant’s actions, the plaintiff experienced a significant decline in inquiries from prospective customers.
* The defendant’s interference directly resulted in the plaintiff losing a lucrative partnership opportunity with a key industry player.
* The plaintiff can demonstrate a clear timeline showing that the defendant’s actions coincided with a drop in business revenue.
* Witnesses can attest that the defendant actively discouraged others from engaging in business with the plaintiff. - Element 5. The plaintiff suffered actual damage or loss as a result of the interference. The plaintiff must show that they experienced real harm or financial loss because someone wrongfully interfered with their chance to do business, proving that the interference had a negative impact on their potential opportunities.
Facts that might support this element look like:
* The plaintiff lost a significant contract worth $100,000 due to the defendant’s actions, which directly interfered with negotiations.
* The plaintiff’s business experienced a 30% decline in revenue following the defendant’s interference, leading to layoffs and reduced operational capacity.
* The plaintiff incurred legal fees exceeding $15,000 while attempting to resolve the disputes caused by the defendant’s actions.
* The plaintiff’s reputation suffered, resulting in the loss of potential clients and future business opportunities.
* The plaintiff was forced to cancel a planned expansion due to the financial instability caused by the defendant’s interference.
(See Coinmach Corp. v. Aspenwood Apartment Corp., 417 SW 3d 909 – Tex: Supreme Court 2013. Wal-Mart Stores, Inc. v. Sturges, 52 S.W.3d 711, 713 (Tex.2001).)
If you’re representing yourself in court and plan to assert a Claim of Tortious Interference With Prospective Business Relations, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge necessary to navigate this complex legal landscape effectively.
Prove Your TX Tortious Interference With Prospective Business Relations Claim
U.S. Civil Cases Only