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What is Wrongful Interference?

Published in Legal Torts 4 mins read

Wrongful interference broadly refers to actions that improperly prevent or disturb another individual or entity in their normal activities, business operations, contractual agreements, or the exercise of their full legal rights. It encompasses various legal concepts where one party's unjustified conduct negatively impacts another's ability to conduct their affairs freely and legitimately.

Understanding the Concept

At its core, wrongful interference involves conduct that is not only disruptive but also improper or unjustified. This often implies an intentional act by the interfering party, who is aware of the other party's existing or prospective relationships or rights, and deliberately acts to disrupt them without legitimate reason. Such actions can lead to significant financial harm or hinder an individual's enjoyment of their property or personal freedoms, prompting legal action.

Common Types of Wrongful Interference

The concept of wrongful interference manifests in several specific legal claims, primarily within tort law, designed to protect individuals and businesses from malicious or improper disruptions.

Tortious Interference with Contract

This occurs when a third party intentionally and improperly causes one party to a contract to breach that agreement with another. For a claim to succeed, there must be a valid contract between two parties, and the interfering party must have known about this contract. Their actions must then directly lead to a breach, resulting in damages.

  • Example: A competitor learns about a supply contract between Company A and Company B. The competitor then offers Company B a significantly better, but unsustainable, deal contingent on them breaking their contract with Company A, solely to disrupt Company A's operations.

Tortious Interference with Prospective Economic Advantage

This claim arises when a third party intentionally and improperly interferes with a probable future business relationship or economic benefit, even if no formal contract exists yet. It protects future business opportunities that are reasonably likely to materialize.

  • Example: A business spreads false and damaging rumors about a rival's new product, causing potential customers who were likely to buy the product to turn away, thus preventing the rival from securing anticipated sales.

Other Forms of Interference

While "tortious interference" specifically addresses contractual and economic relationships, the broad definition of wrongful interference can also apply to other areas where one's rights or activities are improperly disturbed.

  • Nuisance: This involves the unreasonable interference with a person's use and enjoyment of their land. It can be public (affecting a community) or private (affecting an individual property owner).
    • Example: A neighbor's excessively loud, continuous noise from construction work late at night prevents others from sleeping and enjoying their homes.
  • Trespass: This refers to the unauthorized entry upon or interference with the property of another. It can involve physical presence or an invasion of substances (like pollutants).
    • Example: Someone illegally dumping waste on another person's private land.
  • Interference with Privacy: This covers various actions that improperly intrude upon an individual's solitude or private affairs, such as unauthorized surveillance or public disclosure of private facts.
    • Example: A person installs hidden cameras to record a neighbor's activities in their private backyard without consent.

Key Elements of a Wrongful Interference Claim

While specific requirements can vary by jurisdiction, most wrongful interference claims share common elements that a plaintiff must prove.

Type of Claim Key Elements
Interference with Contract 1. A valid contract between the plaintiff and a third party.
2. Defendant's knowledge of the contract.
3. Defendant's intentional and improper interference.
4. Causation: The interference caused a breach or disruption of the contract.
5. Damages suffered by the plaintiff.
Interference with Prospective Advantage 1. A reasonable expectation of a valid business relationship or economic advantage.
2. Defendant's knowledge of this expectancy.
3. Defendant's intentional and improper interference.
4. Causation: The interference prevented the relationship from forming or resulted in its disruption.
5. Damages suffered by the plaintiff.

Seeking Redress

When wrongful interference occurs, the injured party may seek legal remedies to compensate for their losses and prevent further harm.

  • Potential Remedies:
    • Compensatory Damages: Monetary awards to cover the actual financial losses incurred due to the interference, such as lost profits, expenses, or diminished value.
    • Punitive Damages: In cases where the interference was particularly malicious or egregious, courts may award punitive damages to punish the defendant and deter similar conduct in the future.
    • Injunctions: Court orders that prohibit the defendant from continuing the wrongful interference, or compel them to take specific actions to mitigate harm.

Wrongful interference protects fundamental rights to conduct business, engage in personal activities, and enjoy legal protections without improper and unjustified disruption from others.