Tortious Interference?

Protecting Your Business from Interference: Navigating Intentional Torts like Interference with Business Expectancy

Hey business owners! Let’s talk about something that doesn’t always get enough attention but is crucial for protecting your business—intentional torts, specifically interference with business expectancy. If you’ve ever worried about former employees causing trouble for your business, this one’s for you. Let’s break it down in an easy-to-understand way.

What is Interference with Business Expectancy?

First things first, what are we even talking about? Interference with business expectancy occurs when someone intentionally disrupts a business relationship that was likely to result in a financial benefit for you. This isn’t just casual meddling—it’s deliberate, harmful interference that causes real damage.

Why Should Employers Care?

As an employer, you invest a lot in building relationships with clients, partners, and employees. When a former employee tries to interfere with these relationships, it can hurt your bottom line. Understanding how to protect your business from this kind of interference is essential.

How Can Former Employees Interfere?

Former employees might interfere in a number of ways, such as:

- Poaching Clients: They might try to lure your clients away to their new employer or their own business.

-?????????? Hiring Away Your Team: They could recruit your current employees, disrupting your operations.

-?????????? Spreading False Information: They might spread rumors or false information about your business to damage your reputation.

Legal Protections Against Interference

Now, let’s get into the nitty-gritty of how you can protect your business from these actions. We’ve already talked in past posts about the importance of non-solicitation, non-disclosure, and employment agreements with clearly stated terms.

Now, let’s look at Legal Action for Tortious Interference

?? ???????? -What It Is: If a former employee does interfere, you can take legal action for tortious interference. This requires proving that the interference was intentional and resulted in financial loss.

?? ???????? - How It Helps: Legal action can result in compensation for damages and can serve as a deterrent for others who might consider similar actions.

Intentional interference with business expectancy occurs when one party unlawfully interferes with the business relationships or opportunities of another, causing economic harm. Proving such a claim involves several key elements, each of which must be clearly established.

First, the plaintiff must demonstrate the existence of a valid business expectancy. This means there was a reasonable likelihood of a business relationship or opportunity that the plaintiff anticipated. The expectancy must be more than a mere hope; there should be evidence showing a probable economic benefit.

Second the defendant must have knowledge of the business expectancy. This means the defendant was aware, or should have been aware, of the plaintiff’s potential business relationship or opportunity. This knowledge can be inferred from circumstances or direct evidence.

Third, the plaintiff must prove that the defendant intentionally interfered with this expectancy. The interference must be intentional and wrongful, not merely incidental or accidental. It should involve actions specifically aimed at disrupting the business relationship or opportunity.

Fourth, the plaintiff needs to show causation – that the defendant’s interference directly caused the loss of the business expectancy. There must be a clear link between the defendant’s actions and the plaintiff’s economic harm.

Last, the plaintiff must demonstrate actual damages resulting from the interference. This includes quantifiable economic losses directly linked to the disrupted business expectancy.

In summary, to prove intentional interference with business expectancy, a plaintiff must establish a valid business expectancy, the defendant’s knowledge of this expectancy, intentional and wrongful interference by the defendant, causation, and actual damages. Each element is critical to building a successful claim in this area of tort law.

Moving Forward

Protecting your business from interference with business expectancy isn’t just about having the right contracts in place—it’s about being proactive and vigilant. By understanding the legal landscape and taking steps to safeguard your relationships and information, you can minimize the risk of harmful interference.

?So, stay informed, protect your interests, and keep your business thriving, no matter where your former employees end up. Here’s to a secure and prosperous future!