Interference With Business Relationships

In order for a company to be liable for interference with a business relationship (also called tortious interference), the offending company must know or should know of the existence of the relationship and then take steps to interfere which damages one or more of the contractual parties.

The element of knowledge is crucial. For example, a competitor taking actions could be seen as interfering with a contract that you have or are negotiating. However, unless it can be proven that the competitor knew or should have known about the deal, it is unlikely that a court will hold them liable for interference with business relationships.

Another way in which companies can interfere with business relationships is through the disclosure of confidential information to third parties. Most companies guard their bidding and pricing information very closely. If this information gets out and a business learns that they are not receiving the best prices, they may take offense and litigation can result.

Often businesses will operate without protecting their vital information. At Owens & Perkins we strongly encourage our business clients to have the appropriate contracts, such as Confidentiality Agreements and Non-Compete Agreements, in place to make sure that your business information is protected from unwanted disclosure. If you have the agreements in place and unwanted disclosure occurs, you may have a contractual claim in addition to an interference claim.

If you are interested in contacting Owens & Perkins regarding drafting agreements for your business or interference with a business relationship, click here.