Business contracts ordinarily include important details and language that benefit and protect both parties. Ideally, when your Florida business enters into a contract, the terms will be fulfilled as agreed. However, there can be situations when an outsider may disrupt a contract and its performance. This is known as tortious interference with contract. If you have a Florida business, you need to know: what is tortious interference with contract?
Florida Tortious Interference of Contract
When parties enter into a Florida contract, their agreement is governed by specific state statutes. The law provides that if a Florida contract is breached, the injured party or parties may be able to pursue civil remedies. Many breaches of contract disputes are between the parties to the agreement. However, there can be situations when someone outside of the contract interferes with its performance. This is known as tortious interference of contract.
Under Florida law, a tortious interference of contract claim involves the following elements:
- The existence of a valid contract between the injured party and another.
- Proof that the interfering party knew of the contract and intended to disrupt its performance.
- Evidence, the interfering party took action to breach or disrupt the contract.
- Absence of legal justification for the interference or breach.
- Evidence the injured party suffered damages.
The Existence of a Valid Contract
To prove this element, it must be demonstrated that the agreement at issue was properly entered into and enforceable. For instance, if you entered into a contract verbally that is required to be in writing, you may not be able to sue for tortious interference of contract because your agreement is unenforceable.
The Defendant’s Knowledge and Intent
When there is a tortious interference of contract claim, the plaintiff must be able to prove:
- The defendant knew of the contract, and
- Intended to interfere with the agreement.
Interference
In a tortious interference of contract case, a plaintiff must show that the defendant took action to upset their agreement with a third party and that those actions disrupted the contract.
Damages
To recover for a tortious interference of contract claim, the claimant must establish their damages. When one party interferes with a contract between two others, it can delay or impair business operations. Additionally, this type of interruption usually has financial consequences for those involved.
What Amount of Interference Constitutes Tortious Interference of Contract?
An injured plaintiff may have a claim for tortious interference of contract when one term of their agreement is breached. Therefore, it’s unnecessary to prove the defendant interfered with or caused the entire contract to be breached.
Defenses to Tortious Interference of Contract
Some possible defenses to tortious interference of contract include:
- Lack of awareness of the contract
- Lack of intent to interfere with the contract
- The contract was not in effect at the time of the disruption
- The contract was to be in breach without the defendant’s conduct
- The breach did not occur
- The defendant had legal justification or privilege for their conduct.
Justification for Tortious Interference of Contract
It may seem like another party’s contract disruption is never justifiable. However, there may be some circumstances when the conduct may be defensible. For example, suppose two parties have a contract for the sale of goods, and a third party has an ownership interest in the goods that are subject to the sale. The interfering party may have to disrupt the contract to protect their ownership interests.
Having your Florida business contract disrupted can be highly problematic and costly. Therefore, it’s important to act quickly. If you believe another party has committed tortious interference of contract with your agreement, you should contact an experienced Florida business attorney as soon as possible to discuss your case.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent small business clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.