Business Law · Haute Lawyer Network
What Is Tortious Interference?
Last reviewed: June 2026
Tortious interference is a civil tort that occurs when a person or entity intentionally and improperly interferes with another party's existing or prospective business relationships, causing economic harm. There are two main forms: tortious interference with contract (where the defendant interferes with an existing contract) and tortious interference with prospective economic advantage (where the defendant interferes with an expected future business relationship). The elements of tortious interference with contract include: the existence of a valid contract, the defendant's knowledge of the contract, intentional and improper interference causing breach or disruption, and resulting damages. Tortious interference with prospective advantage additionally requires showing that the interference was wrongful — beyond mere competition — such as through illegal conduct, fraud, or independently tortious means.
Frequently Asked Questions
What is the difference between tortious interference and legitimate competition?
Competitors are permitted to compete aggressively — offering better prices, marketing more effectively, and soliciting each other's customers and employees. Tortious interference requires conduct that is independently wrongful — using illegal means, fraud, defamation, or other improper tactics to interfere with business relationships.
What is improper interference?
Conduct that is wrongful beyond the interference itself — such as inducing breach of contract through bribery, misrepresentation, threats, or illegal means. Legitimate competitive conduct is not "improper" even if it disrupts another's business relationships.
What damages are available for tortious interference?
Lost profits from the disrupted contract or business relationship, loss of future business from the affected relationship, and in cases of intentional malicious conduct, punitive damages and attorney fees in some jurisdictions.
Can an employee be personally liable for tortious interference?
Yes — particularly when an employee uses their position to wrongfully interfere with their employer's business relationships for personal benefit, or when a former employee intentionally undermines contracts using confidential information.
What is the statute of limitations for a tortious interference claim?
Typically 2-3 years depending on the state, generally running from when the plaintiff knew or should have known about the interference and resulting harm.
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