Interference with Contractual Relations in The Woodlands

Litigation and Interference with Contracts Throughout Texas

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When you have a serious legal issue that seems destined for a lawsuit, there is one thing you need to hear from your attorneys:

“We will tell you the truth even if it’s unpleasant.”

That’s hard for a lot of lawyers to do because the last thing a client wants to hear is, “You don’t have a case,” or “it’s time to pull the plug and walk away,” or “It’s not worth the expense just to be prove you’re right.”

You need to know because you need to do whatever is best for your business. And to do that you need straight facts.

Hopkins Centrich PLLC gives you the facts... along with cutting edge, high quality, creative legal solutions to businesses in The Woodlands and beyond.

Interference with Contracts in Closely Held Companies

Here are the key elements of the business tort of interference with a contract:

• Existing contract - There must be a valid, enforceable contract between two parties.
• Knowledge of the contract - The defendant must have knowledge of the contractual relationship.
• Intentional interference - The defendant must intentionally and improperly interfere with the performance of the contract through their words or actions.
• Breach of contract - The interference must cause one party to breach the terms of the contract.
• Damages - The plaintiff must suffer financial harm from the breach of contract caused by the defendant's interference.
• Improper means - Interference involves illegal, unethical, or fraudulent means, such as misrepresentation, defamation, or violence.
• Improper motive - The defendant acts not out of legitimate self-interest but with malice or ill will against the plaintiff.
• Causation - There must be a direct causal link between the interference and the contract breach resulting in damages.

The tort aims to protect parties' rights to execute contracts free of unjustified outsider interference. Please note, however, that competitive commercial dealings are usually not considered improper interference.

Interference with Contracts Litigation

Here are some key things to know about litigation for the business tort of interference with contract:

• Plaintiffs - Typically the aggrieved party to the original contract that was interfered with. They must prove they suffered damages.
• Defendants - Usually a third party outside the original contract who intentionally interfered. Former employees or competitors could be defendants.
• Breach requirement - Actual breach of the contract caused by the defendant's interference must be demonstrated.
• Contract validity - The plaintiff must prove a valid, enforceable contract existed that the defendant was aware of.
• Interference methods - Evidence must show how the defendant improperly interfered, such as through defamation, physical force, fraud, or abuse of power.
• Damages - Specific economic losses resulting from the contract breach perpetrated by the defendant must be shown.
• Improper conduct - It must be established that the interference involved illegal, unethical, or unjustified means.
• Causation - A clear causal link between the interference and the breach is required.
• Injunctive relief - Courts may issue injunctions prohibiting further tortious interference.
• Royalties - Royalty payments may be awarded for lost profits stemming from the interference.
• Punitive damages - If the defendant's conduct is especially egregious, punitive damages may be available.

Proving the improper methods used, resulting breach, and damages caused by the defendant are key elements of pursuing interference claims through litigation.