Business interference, also called tortious interference, occurs when a third party intentionally disrupts two other parties’ business relationship. When someone has interfered with your Michigan business relationship, you may have a legal claim to recover compensation for your financial losses.
Understanding Business Interference
Business interference occurs when a party commits tortious interference with a business relationship, contract, or prospective business advantage. Tortious interference with a business relationship refers to interfering with two other parties’ ongoing business relationship. Tortious interference with contractual relations happens when a third party, acting with an improper purpose, induces a party to a contract to terminate it or breach their contractual obligations. Finally, tortious interference with prospective business advantage involves preventing two parties from entering a business relationship or usurping another party’s business opportunity.
Examples of scenarios that may constitute business interference include:
- Spreading false information about a business or its products/services
- Poaching customers
- Filing baseless lawsuits
- Inducing suppliers to stop selling to a business
- Misappropriating trade secrets
Key Elements of a Successful Business Interference Claim in Michigan
A successful business interference claim will require a plaintiff to prove several elements, including:
- Valid Business/Contractual Relationship or Expected Business Relationship – A plaintiff must prove they had a current business or contractual relationship with another party or a reasonable expectation of entering a business or contractual relationship with another party.
- Knowledge of the Relationship – The party who allegedly interfered with the business relationship must have known about it.
- Intentional Interference – A party must intentionally interfere with other parties’ business or contractual relationship for an improper purpose. Interference through honest business competition, such as approaching a party in an existing contractual relationship with a more favorable deal, does not rise to the level of actionable business interference.
- Disruption or Termination – Interference must cause a termination or breach of a contract or the loss of a business relationship or business opportunity.
- Damages – The alleged victim of the business interference must prove they suffered financial losses, such as lost profits or the cost of replacing the lost business relationship.
Common Defenses Against Business Interference Claims
Parties accused of committing business interference in Michigan may raise various defenses to legal claims, such as:
- Legitimate business competition
- Justification (protecting one’s business interests)
- Lack of intent to interfere with a business or contractual relationship
The Importance of Legal Representation
Proving a business interference claim in Michigan can involve complex factual and legal issues, as parties accused of business interference may claim a lack of intent or assert, they sought to compete in good faith. As a result, you may increase the chances of success in your business interference claim by working with an experienced litigation attorney who can help you gather the evidence needed to prove your claim.
Contact a Business Litigation Attorney Today
When someone interferes with your business relationship in Michigan, you may have a claim to recover compensation for your losses. Contact August Law, PLLC, today for a confidential consultation with our legal team to learn more about what you need to prove to succeed in a business interference claim in Michigan.