Atlanta Tortious Interference Lawyers Protecting Your Business from Unfair and Unlawful Disruption
Contracts. Vendor agreements. Partnerships. Longtime clients. Relationships are vital to every business. When a third party damages those relationships to benefit itself, the harm to your business can be immediate and severe. Referred to as tortious interference, Georgia business owners can pursue compensation and other legal remedies when a third party causes damage to their business in this way.
At Poole Huffman, our Atlanta tortious interference lawyers represent businesses, executives, and professionals in disputes involving contracts and business relationships. If your company has lost a valuable client, suffered damages because of a lost deal, or dealt with other situations where a third party may have disrupted your business relationships, we can help you evaluate your legal options and take action.
What Is Tortious Interference?
Tortious interference is a civil wrong, or tort, that allows an injured party to pursue legal remedies against a third party that unlawfully interferes with contracts or business relationships. The laws governing business relationships are designed in part to allow companies to conduct business without improper interference from competitors, former partners, and others.
In Georgia, tortious interference claims can be brought in two general scenarios:
Interference With Contractual Relations
This occurs when someone unlawfully causes a party to breach a contract. A breach occurs when someone with a legal duty under an enforceable contract does not perform as they should. For example, if a business contracts with another company to provide goods or services exclusively, and someone intentionally causes the vendor to breach that contract, tortious interference may have occurred.
Interference With Business Relations or Prospective Advantage
Business relationships do not always involve contracts. Companies can often pursue legal action in situations where someone unlawfully interferes with a current or expected business relationship. This can include interference with negotiations or preventing a deal from closing.
These actions can harm a company’s bottom line and its overall relationships with vendors, clients, and partners.
How Tortious Interference Can Occur
Tortious interference can occur in many ways. While some people may envision interference occurring in dramatic circumstances, it can also happen behind closed doors. A few examples include:
- An individual spreads false information about your company to a vendor.
- An individual with ties to your company poaches its clients in violation of a contract.
- A third party convinces your supplier to stop doing business with you.
- One of your executives uses inside information to divert business to a competitor.
- A company intentionally sabotages negotiations between your business and another company.
It is important to note that Georgia law allows fair competition, and not all intentional interference will qualify as tortious interference. However, someone who improperly causes another business to lose out on business or a contractual relationship may be liable. Examples of “improperly” can include fraud, defamation of character, deliberate violations of contractual obligations, and more.
Signs of Tortious Interference Within Your Business
Business owners and executives often know when something isn’t right, even if they don’t know the specifics. Some common signs that tortious interference within your company may have occurred include:
- You suddenly lose a longtime client and can’t figure out why.
- Your vendor breaches an agreement after speaking with a competitor.
- You discover confidential information in your competitor’s possession.
- One of your former employees rushes to target your clients after leaving the company.
- You lose out on a deal at the last minute despite your best efforts.
If your business experiences any of these situations, tortious interference may have taken place.
What to Do if Tortious Interference Occurs
It’s important to take action as soon as you believe tortious interference has occurred. The sooner you act, the better your chances are of protecting your business and holding the appropriate parties accountable. Here’s what you can(and should) do:
Document Everything
Compile any communications, contracts, email exchanges, and more that you have that could show what happened.
Review Contracts and Agreements
Look over any contracts that may have been breached or violated as part of the interference. Non-compete, non-solicitation, and confidentiality agreements can be relevant to tortious interference claims.
Don’t Feed the Fire
You may be angry once you discover tortious interference within your business. However, you shouldn’t act rashly and make the situation worse. Speak with an attorney before sending any communications to the other party.
Damages in Tortious Interference Cases
When you suffer harm due to tortious interference, you may be able to recover damages, including:
- Profits lost due to a contract breach
- Lost business opportunities
- Damages due to harm to your reputation
- Expenses associated with finding new vendors
- In some cases, punitive damages
The damages you recover will depend on the specific facts of your situation. Few business owners plan for tortious interference. Because of this, it’s important to have knowledgeable legal counsel on your side. Poole Huffman’s Atlanta tortious interference lawyers can work with you to protect your business interests and pursue your desired outcomes.
Why Work with Poole Huffman’s Atlanta Tortious Interference Lawyers?
Few business owners plan for tortious interference. Because of this, it’s important to have knowledgeable legal counsel on your side. Poole Huffman’s Atlanta tortious interference lawyers will work with you to protect your business interests and pursue your desired outcomes. The team can evaluate your situation and provide you with your legal options. Your lawyer can work with you to negotiate a resolution or, if necessary, litigate your claim in court. Contact our firm now to learn more.
Atlanta Tortious Interference FAQs
What do I need to prove tortious interference in Georgia?
To succeed on a claim for tortious interference, a business typically must prove that: (1) a contract or business relationship existed; (2) the defendant knew of the relationship; (3) the defendant intentionally and improperly interfered with that relationship; and (4) the interference caused actual financial loss to your business.
What kind of damages can I recover?
Businesses can typically recover damages resulting from tortious interference. This can include lost profits from a contract, lost business opportunities, and reputational harm. Punitive damages may also be available in certain situations.
Do I need a tortious interference attorney?
Yes. These cases can be complicated and fact-specific. An experienced attorney can evaluate your case, review the evidence, and help you pursue the full extent of your legal remedies.
Can a competitor take my clients or business?
Not always. Georgia law allows competition, and businesses are generally free to solicit clients and try to convince them to switch to their services. However, if a competitor unlawfully poaches your clients or otherwise interferes with your contracts, you may have a claim.
How long do I have to file a lawsuit?
The statute of limitations will depend on the facts of your case. Please contact our office to learn more and ensure all deadlines are met.
