Tortious interference with contract—also known as intentional interference with contractual relations or business expectancy—is a civil claim or cause of action based on interference with a contract or a prospective contract that is about to be completed—by a person or entity who is not a party to the contract (third party).
A claim for tortious interference is based on the idea that the third party encouraged or induced one of the parties to the contract to breach the contract, causing damages to the nonbreaching party, who may sue the third party to recover those damages or losses. In some states there is a requirement that the interference be done maliciously or without justification.
Laws regarding claims for tortious interference with contract vary from state to state. Some states have broadened the protections against interference beyond situations where there is an existing contract and recognize claims for interference with prospective economic advantage or business relations.
But whether there is an existing contract or not, some instances of interference will not create legal liability and will be recognized as legitimate competitive activity, for example.
In West Virginia, tortious interference with a contract occurs when a third party, who is not part of an existing contract, intentionally causes one of the contracting parties to breach that contract, resulting in damages to the other party. The non-breaching party can then bring a lawsuit against the interfering third party to recover those damages. West Virginia law requires the plaintiff to prove that the interference was intentional and without justification. The state also recognizes claims for interference with prospective contractual relations or business expectancies, which protect the potential economic relationships that have a reasonable likelihood of coming to fruition. However, not all interferences are actionable under the law. Acts of fair competition or legitimate business practices that incidentally result in interference with a contract may not be considered tortious. An attorney can help determine whether an action constitutes tortious interference and whether it is actionable under West Virginia law.