Understanding the Tort of Intentional Interference with Prospective Economic Advantage

Definition & Meaning

The tort of intentional interference with prospective economic advantage occurs when one party intentionally disrupts another party's potential economic relationships with third parties. This legal concept is designed to protect the trust and confidence inherent in these relationships, ensuring that individuals can pursue economic opportunities without unwarranted interference.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A company learns that a competitor is trying to convince its clients to switch their business. If the competitor uses deceitful tactics to persuade these clients, the original company may have grounds for a claim of intentional interference.

Example 2: A real estate agent intentionally spreads false information about another agent to dissuade potential buyers from working with them, causing economic harm to that agent. (hypothetical example)

State-by-state differences

State Key Differences
California California recognizes this tort and has specific case law that outlines its elements, as seen in Buckaloo v. Johnson.
New York New York also recognizes this tort but may apply different standards regarding what constitutes intentional interference.
Texas Texas law has similar principles but may have additional requirements for proving damages.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Differences
Tortious interference with contract Interference with an existing contract between two parties. This tort applies to established contracts, while intentional interference with prospective economic advantage deals with potential future relationships.
Defamation False statements that harm a person's reputation. Defamation focuses on reputation, whereas intentional interference focuses on economic relationships.

What to do if this term applies to you

If you believe you are a victim of intentional interference with prospective economic advantage, consider the following steps:

  • Document any evidence of the economic relationship and the actions taken by the defendant.
  • Consult with a legal professional to evaluate your case and determine the best course of action.
  • Explore US Legal Forms for templates that can assist you in filing a claim or managing your legal needs.

Quick facts

  • Jurisdiction: Civil law
  • Typical damages: Varies based on the case
  • Potential penalties: Compensation for lost profits and damages

Key takeaways

Frequently asked questions

It is a legal claim that arises when one party intentionally disrupts another's potential economic relationships.