Litigation and Interference with Contracts
Before we talk about interference with contracts, we need to talk about the Hopkins Centrich litigation philosophy:
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.
Hopkins Centrich and Interference in Contracts
Hopkins Centrich PLLC provides cutting edge, high quality, creative legal solutions for business owners in Texas.
Our attorneys and staff have decades of experience in virtually every aspect of business law in The Woodlands and Texas. We have designed and incorporated businesses, managed their every legal concern, engaged in litigation on their behalf, aided with mergers and acquisitions, managed mergers, acquisitions, and sales.Hopkins Centrich knows Texas business law. We are uniquely positioned to help shareholders when they have amble cause to believe their rights are being violated.
When we work with a client, our sole focus is on them. We take advantage of everything technology has to offer in order to optimize how we work. That gives us more time to spend with you, more time to understand the issues, more time to negotiate and prepare for trial.We get that no one wants to contact a law firm unless they feel they absolutely have to. When they do, it almost always means that ‘things have reached a head.’
The attorneys and staff of Hopkins Centrich understand what you are going through. We will make the process understandable; you will know what is happening with your case every step of the way, you will never have to track us down for answers.
How We Work
Hopkins Centrich is a team with a deep bench. All our attorneys have extensive litigation experience which they fully use when called for.
Hopkins Centrich’s attorneys all have ‘big firm’ backgrounds. They formed our firm with the goal of keeping the best of those firms while employing far more personal experience for our clients.
We do this by using technology to its fullest. We will make use of every cutting edge legal and business technology and methodologies to ensure that we will continue to deliver the highest quality legal services to our clients while allowing us to respond promptly and efficiently to client needs, exceed project requirements, operate effortlessly with narrow timeframes, and develop innovative and flexible legal solutions at competitive fees.
We are creative. We are agile. We quickly adapt to rapidly changing circumstances, including changes in the law.
Our vision statement may sum it up best. We will deliver highly skilled, ethical, and aggressive legal representation to every client by:
Responding promptly to our clients’ needs;
Anticipating business and legal trends that may affect our clients;
Managing our clients’ matters in an efficient, caring, and proactive manner;
Communicating regularly and clearly with our clients