Standing Tall When It Matters Most

Navigating tortious interference in Texas

The business sector in Texas is highly competitive, which is good since it results in better products and services for the consumers and society at large. However, there are times when a company can go overboard when trying to stand out among its competitors by using unethical or illegal tactics. Among these tactics is tortious interference, which happens when a person or business intentionally damages the economic relationship of another person or company.

Common types of tortious interference

Tortious interference can occur when one business tries to sway customers to buy its products and services instead of those offered by another competitor. For instance, a company may spread false information about another competitor to make its own products and services more attractive.

Another form of tortious interference is inducing a breach of contract. This happens when a business approaches an employee or customer who has entered into a contractual agreement with another business and offers them incentives to break the contract. For example, if a company were to approach someone who has signed an exclusive distribution agreement with another company and offers them better terms, the court can take that as tortious interference.

How to deal with tortious interference

You can pursue business litigation if you believe you are a victim of tortious interference to protect your rights and interests. There are four elements you must meet before you proceed:

  • The existence of a valid and enforceable contract between you and another party, e.g., a customer or employee
  • Intentional interference of that contract by a third party, in this case, another company
  • Loss caused by the intentional interference
  • A legal remedy to find relief from the loss suffered

The next step would be to file with the court and submit evidence of damages. This could include lost profits, diminished value of the business or other costs you incurred as a result of the tortious interference. In Texas, a court can award compensatory and punitive damages if it finds that the third party acted with malicious intent.

Tortious interference is an unethical and illegal practice in Texas that businesses must avoid at all costs. If you believe that another company has intentionally interfered with your economic relationship with customers or employees, it is important to remember that there are legal remedies available to seek justice and make your target market conducive for everyone.