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Business Interference



Business interference represents a predatory violation of the rules of the marketplace where a third party intentionally sabotages a contractual relationship or economic prospect to cause financial harm. 

 

It is not merely aggressive competition but a calculated legal tort that crosses the line from rivalry to liability. When a competitor poaches a key client through deceit or induces a supplier to breach a valid contract they have committed an actionable offense.

 

At SJKP LLP we view business interference claims as high-stakes corporate warfare that determines whether a company survives to capture market share or collapses under the weight of unfair tactics. We represent plaintiffs seeking to recover lost profits and defendants accused of overstepping legal boundaries. Litigating these cases requires more than just proving a deal fell through. It requires a forensic reconstruction of the timeline to prove that the interference was intentional and unjustified.

 

We employ economic experts to quantify the damage and digital forensic teams to uncover the paper trail of sabotage. Whether you are fighting to protect your customer base or defending your right to compete freely we provide the aggressive commercial litigation strategy necessary to secure your bottom line. Our attorneys understand that these disputes are time-sensitive and often require immediate injunctive relief to prevent irreversible loss of enterprise value.

 

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1. The Legal Elements of Business Interference


To succeed in a business interference claim the plaintiff must prove that the defendant intentionally interjected themselves into a valid business relationship and caused economic harm without justification. 

 

This tort is divided into two distinct categories which are interference with an existing contract and interference with prospective economic advantage. The burden of proof varies significantly between them and understanding this distinction is critical for both prosecution and defense.

 

We meticulously analyze the specific elements to determine the viability of the claim. We must demonstrate that the defendant knew about the relationship and acted with the specific intent to destroy it. Negligence is not enough as the sabotage must be calculated and targeted.



Interference with Existing Contracts


This is the strongest form of the claim because it involves a breach of a binding agreement. To prevail we must prove that a valid contract existed between the plaintiff and a third party and that the defendant knew of this contract. The core element is inducement. We must show that the defendant intentionally induced a breach of that contract through their actions.

 

We focus on gathering evidence of this inducement. Did the defendant offer a bribe or spread false rumors to force the breach? We gather emails and internal memos to prove that the defendant actively targeted the contract. If the contract was void or illegal to begin with the claim fails so we also scrutinize the underlying agreement for enforceability.



Interference with Prospective Economic Advantage


This claim protects future business relationships that have not yet been solidified into a contract. It applies when a competitor sabotages a deal that is in the negotiation phase. The legal bar here is higher because there is no binding contract yet.

 

The plaintiff must prove that the conduct of the defendant was independently wrongful. This means the interference must involve an act that is illegal in itself such as fraud or defamation or physical violence. We argue that aggressive competition like offering a lower price is not wrongful. To win we must show that the tactics used were structurally unfair and went beyond the norms of industry rivalry.



2. Common Scenarios of Commercial Sabotage


Business interference manifests in diverse scenarios ranging from the poaching of executive talent to the orchestrated disruption of supply chains. 

 

Understanding the specific mechanics of the sabotage is critical to building a defense or a prosecution. It is rarely done in the open as it is often disguised as standard business negotiation.

 

We strip away the camouflage to reveal the malicious intent. We identify the specific acts that disrupted the flow of commerce and link them directly to the financial decline of our client.



Vendor and Supplier Intimidation


A common tactic involves a dominant market player forcing suppliers to boycott a smaller competitor. They might threaten to pull their own massive orders unless the supplier drops the rival. This creates a choke point that can strangle a business.

 

We litigate these cases as hybrid antitrust and interference matters. We gather testimony from the suppliers who felt coerced. We argue that this conduct is not competition on the merits but an exclusionary practice designed to cripple the production capabilities of our client. We seek injunctions to restore the supply chain immediately to prevent bankruptcy.



Poaching Employees and Non-Compete Violations


When a competitor hires away a key executive it is often to gain access to their knowledge of confidential client lists. If they encourage that executive to breach a non-compete agreement or to solicit their former colleagues it constitutes business interference.

 

We file lawsuits to enforce the restrictive covenants and sue the new employer for inducing the breach. We argue that the hiring was not a talent acquisition strategy but a raid designed to cripple the operational leadership of our client. We seek damages for the cost of recruiting replacements and for the lost revenue from clients who followed the departing executive.



3. Defenses Against Business Interference Claims


The most effective defense against a business interference claim is the privilege of fair competition which grants companies broad latitude to aggressively pursue market share. 

 

At SJKP LLP we defend corporations accused of playing too rough. We argue that the actions of our client were justified by their own economic self-interest and that they used only lawful means to compete.

 

We aim to dismiss these claims early by showing that the plaintiff is simply a sore loser who cannot compete on price or quality. We reframe the narrative from sabotage to market efficiency.



The Competition Privilege Defense


The law encourages competition. A company is generally free to solicit business from the customers of a competitor provided they do not use wrongful means. This applies even if it damages the competitor.

 

We assert the competition privilege. We prove that the interest of our client was not to harm the plaintiff but to advance their own business. If we offered a better product at a better price and the customer voluntarily switched that is the free market at work and not a tort. We use market analysis to show that the decision of the customer was driven by value rather than by any alleged interference.



Justification and Truthful Information


Truth is an absolute defense. If a defendant induced a breach by telling a customer the truth there is no liability. For example informing a customer that the plaintiff is insolvent or under investigation is protected speech.

 

We gather evidence to substantiate any statements made to third parties. If we warned a supplier that the plaintiff was about to go bankrupt and they were our warning was justified to protect the supplier. We argue that providing truthful information that allows a third party to make an informed economic decision cannot be the basis for a business interference liability.



4. Damages and Financial Recovery


The goal of business interference litigation is to restore the plaintiff to the financial position they would have occupied had the sabotage not occurred.

 

This involves complex economic modeling. We do not just ask for the value of the lost contract but we ask for the lost future profits and the destruction of enterprise value.

 

Damages in these cases can be astronomical because they often involve the loss of a long-term relationship rather than a single transaction. We focus on maximizing the recovery to reflect the true scale of the harm.



Calculating Lost Profits and Consequential Damages


We hire forensic accountants to project the revenue stream that was interrupted. We look at the history of the relationship and industry growth rates. If a five-year contract was breached in year one we calculate the present value of the remaining four years.

 

We also seek consequential damages which are the ripple effects of the breach. This might include the cost of shutting down a factory line or the reputational damage that prevented other deals. We present a comprehensive damage model that captures the full economic footprint of the interference.



Punitive Damages for Malicious Conduct


Because business interference requires intentional misconduct it opens the door to punitive damages. These are designed to punish the defendant and deter future bad acts.

 

We argue for punitive damages when the conduct was particularly egregious such as using fraud or bribery or blackmail. We present evidence of the wealth of the defendant to the jury to argue that a significant financial penalty is required to get their attention. Punitive damages can often exceed the actual compensatory damages turning a commercial dispute into a company-ending event for the defendant.



5. Digital Interference and Cyber Sabotage


Modern business interference increasingly occurs in the digital realm involving the manipulation of search algorithms or the posting of fake reviews to hijack web traffic. 

 

These tactics are harder to trace but just as damaging. The anonymity of the internet often emboldens competitors to engage in tactics they would never attempt in person.

 

We are at the forefront of litigating digital interference. We understand how to subpoena ISPs and platforms to identify the source of the attack.



Fake Reviews and Reputation Attacks


Competitors often hire bot farms to flood the page of a rival with one-star reviews or false complaints to drive down their rating. This directly impacts sales on platforms like Amazon or Yelp.

 

We treat this as digital tortious interference. We use data analytics to identify patterns in the reviews such as identical timestamps or IP addresses that prove coordination. We sue the competitor for the lost sales during the period of the attack. We also seek court orders to force the platforms to remove the fraudulent content.



Typosquatting and Ad Hijacking


Some competitors buy domain names similar to the plaintiff to divert traffic. This is known as typosquatting. Others buy ads on search terms for the trademark of the plaintiff to steal customers.

 

We litigate these as interference with prospective economic advantage. We argue that the defendant is intentionally confusing customers to steal traffic that was destined for our client. We use click-through data to quantify exactly how many customers were diverted and calculate the conversion rate to estimate the lost revenue.



6. Why Clients Choose SJKP LLP for Business Interference


We approach business interference cases with the aggressive mindset of a corporate raider and the precision of a forensic auditor to protect your market position. 

 

At SJKP LLP we understand that these disputes are about the survival of your business. We do not view a lost contract as just bad luck. We investigate it as a potential crime against your business.

 

Our firm is chosen because we have the resources to reconstruct complex commercial timelines and the economic expertise to prove what could have been. We know how to differentiate between hard-nosed competition and illegal sabotage. We act quickly to seek Temporary Restraining Orders to stop the interference before the customer is lost forever.

 

We are prepared to take the case to trial to expose the unethical tactics of the defendant to a jury. Whether you are the victim of a smear campaign or are defending your aggressive growth strategy SJKP LLP provides the sophisticated and relentless advocacy necessary to shine a light on the truth and recover what is rightfully yours. We ensure that the marketplace remains a battlefield of merit rather than manipulation.


08 Jan, 2026


The information provided in this article is for general informational purposes only and does not constitute legal advice. Reading or relying on the contents of this article does not create an attorney-client relationship with our firm. For advice regarding your specific situation, please consult a qualified attorney licensed in your jurisdiction.
Certain informational content on this website may utilize technology-assisted drafting tools and is subject to attorney review.

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