When Can An Ohio Business Sue For Tortious Interference?
Sometimes business relations are crucial for the success of an organization. Business relations with suppliers, clients, and partnerships with workers are all vital elements that help the firm grow and succeed. The financial impact of such an interference becomes extremely negative, especially when the third party acts purposely to interfere with the relationship or deal.
According to the law of Ohio, there is a special type of lawsuit called tortious interference. Such lawsuits can help a business defend their legitimate rights and interests in the event someone interfered with a business contract or relationship. Cases like these occur most often between ex-workers, competitors, suppliers, or business partners.
What is tortious interference?
A situation is defined as tortious interference if there is intentional interference with a contractual relationship, causing economic loss. There are basically two types of tortious interference that are acknowledged by Ohio law:
- Tortious interference with a contract
- Tortious interference with a business relationship
If there is tortious interference with a contract, this means that there is a valid contract between two parties. An instance of tortious interference with a contract can be exemplified by having an individual convince a company supplier to breach the sole supply arrangement contract.
When talking about tortious interference with a business relationship, this pertains to interfering with the relationship even without an existing contract.
Elements of a tortious interference claim
For a tortious interference claim to be successful, a company must demonstrate some important elements. First of all, the company needs to prove the existence of a valid contract or a legitimate business relationship. Second, the plaintiff must prove that the defendant is aware of this business relationship. Third, the plaintiff must show that the defendant interfered with this relationship without a reasonable cause.
Finally, the company will have to provide proof that this interference led to damages suffered by the plaintiff. It is not wrong to compete against another company. However, tortious interference becomes actionable when it is accompanied by fraud or deception.
Common examples of tortious interference in Ohio business disputes
Cases of tortious interference can be brought up in a variety of business environments. Some of these include:
- Where a former worker is enticing away clients contrary to the terms of the non-compete agreement.
- Where one firm provides misleading information about another firm.
- Where a supplier deliberately breaches an exclusive agreement because of the influence of the competitor.
- Where there is interference by a business partner when another company engages in negotiations with their clientele.
In most instances, such cases cause considerable monetary losses.
Potential damages
A successful tortious interference lawsuit can enable a company to gain compensation for economic losses suffered due to the tortious act. Damages can include:
- Profits lost
- Business opportunities lost
- Reputation damage
- Costs incurred in repairing relationships
In some cases where the behavior is extremely offensive, punitive damages may also be recoverable.
Talk to a Dayton, OH, Business General Counsel Attorney Today
Kohl & Cook Law Firm, LLC, represents the interests of Ohio businesses as general counsel. Call our Dayton general business counsel lawyers today to schedule an appointment, and we can begin discussing your goals right away.
