Developing relationships between businesses entities is important for the economy at large. Basing those relationships on time-tested loyalty is even more important to the economy’s sustainability. At times, the business community loses its eye on the principles that shaped this nation’s economy- integrity, loyalty, perseverance, and justice.
There comes a time in a business relationship, where your business colleagues, be it suppliers, distributors, marketers, or controlling shareholding companies fail to live up to the principles that made the American business community what it was at its peak.
At times- profits shape decisions at the price of reputation and integrity leading some businesses to engage in tortious interference with contracts.
If your business had a valid contract with another business entity, and a third-party knowingly procured a breach of the contract without any justification, from which you sustained damages- you would have a claim for tortuous interference against them. See Lama Holding Co. v. Smith Barney Inc., 88 N.Y.2d 413, 424 (1996), also see Levine v. Yokell, 258 A.D. 296.
Undoubtedly, these forms of tortious interference come at the behest of making a bigger profit, but at the expense of the affected party.
In bringing a cause of action for tortious interference a Plaintiff must demonstrate that “but for” the interference by defendant, there would have been no breach between the parties. Washington Ave. Assocs., Inc. v. Euclid Equip., Inc., 229 A.D.2d 486, 487 (2d Dep’t 1996).
Occasionally such interference can be held to be justified with a showing that the interference was meant to preserve the financial health of the business. See Foster v. Churchill, 87 N.Y.2d 744, 749-51 (1996).
These tortuous acts occur regularly in a weaker economy, and it’s imperative to discuss your legal options with a Long Island litigation attorney. While reactionary legal consultations are called for, preventative solutions should also be considered for growing businesses by keeping General Counsel involved throughout the beginning phases of contract formation and drafting.
Regardless of when your business decides to tackle the issues, our office is ready to help you in obtaining results.
