When a third party disrupts a business relationship, the damage can be immediate and costly. In this article, we break down…
Tortious interference under Illinois law generally occurs when a third party seeks to interfere with or disrupt a company’s existing contractual or business relationship in a way that ultimately causes harm.
There are two most common types of tortious interference. One is tortious interference with contract, and the other is tortious interference with business expectancy, sometimes also referred to as tortious interference with prospective economic advantage. Each has different legal requirements.
That said, there is some commonality between the two. Generally, you must either have a valid contract or a reasonable expectancy of entering into a business relationship of some kind. There must be knowledge of that contract or expectation by the third party. The third party then has to intentionally insert itself where they do not belong and interfere in a way that either causes a breach of contract or prevents the relationship from ever coming into existence.
Both types of claims also require damages. You generally do not have a valid claim in Illinois unless you can show that some form of harm or damage actually occurred as a result of the interference.
It really comes down to a fact-specific inquiry. Ultimately, courts look at the intent of the third party and whether they used any wrongful means.
If there is malicious intent and the party is using unethical tactics, especially if they know a contract exists and deliberately interfere, that can be problematic. On the other hand, if there is no intent to interfere, no fraudulent or deceitful conduct, and the party is simply engaging in counter-advertising or lawful competition, that generally is not considered tortious interference.
If lawful competition ultimately attracts one of your customers, that alone does not make it interference. The key issue is intent. If the goal is to compete for all customers generally, rather than to target and disrupt a specific contractual or business relationship, courts are far less likely to find tortious interference.
Craig Donnelly is the founder of Donnelly Law LLC and an experienced Illinois business attorney who regularly represents companies facing unfair competitive conduct and high-stakes commercial disputes.
He has helped Illinois businesses pursue and defend tortious interference claims involving stolen clients, disrupted contracts, and improper competitor tactics. Craig Donnelly understands how courts distinguish aggressive but lawful competition from actionable misconduct because he has litigated these issues in real-world scenarios.
If your business relationships or revenue are under threat, contact Donnelly Law LLC today to protect your interests and take decisive action before the damage escalates.
For tortious interference with contract, you must prove:
For tortious interference with business expectancy, you must prove:
Tortious interference with a contract is generally much easier to prove than tortious interference with business expectancy.
That said, damages are generally based on actual losses that can be tied directly to the defendant’s conduct and proven with reasonable certainty. Most commonly, damages are calculated based on lost profits, meaning the revenue the business would have earned but for the interference, minus any costs that would have been incurred.
Damages can also include loss of contract benefits. That may involve more than just money. For example, a contract might have provided strategic value, services, licensing rights, or other non-monetary benefits.
Less commonly, but still possible, is a claim for diminution in the value of the business. If the interference is severe enough, such as the loss of a key client, third-party experts can sometimes calculate a reduction in business value or goodwill. Out-of-pocket expenses may also be recoverable.
In limited circumstances, a business may seek consequential damages, punitive damages, or equitable relief, such as an injunction, if monetary remedies alone are insufficient.
Legal counsel is particularly important in tortious interference disputes because of the sheer amount of evidence that must be collected. If you believe a competitor or other individual or entity is interfering with your business, whether an existing contract, a potential contract, or a prospective client, you should involve legal counsel as early as possible.
This becomes especially critical if you intend to seek injunctive relief to stop the conduct. Injunctions are highly time-sensitive, and delays can significantly undermine your position. In these cases, early and aggressive involvement of legal counsel is imperative.
For more information on tortious interference in Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (630) 274-6196 today.
Craig Donnelly is the founder of Donnelly Law LLC and an experienced Illinois business attorney who regularly represents companies facing unfair competitive conduct and high-stakes commercial disputes.
He has helped Illinois businesses pursue and defend tortious interference claims involving stolen clients, disrupted contracts, and improper competitor tactics. Craig Donnelly understands how courts distinguish aggressive but lawful competition from actionable misconduct because he has litigated these issues in real-world scenarios.
If your business relationships or revenue are under threat, contact Donnelly Law LLC today to protect your interests and take decisive action before the damage escalates.