What Is Tortious Interference In The Business Context?

Published on December 21, 2025

Tortious interference occurs when someone intentionally disrupts a business relationship or contract between two other parties, causing financial harm. It’s a legal claim that protects businesses and individuals from third parties who deliberately sabotage their economic opportunities.

The Two Main Types

There are two primary forms of tortious interference:

1. Interference with Contract: This happens when a third party intentionally causes one party to break an existing contract with another. For example, if Company A has a contract with Company B, and Company C convinces Company B to breach that contract, Company A may have a claim against Company C for tortious interference.

2. Interference with Economic Relations: This entails disrupting a business relationship that doesn’t necessarily involve a formal contract, but where there’s a reasonable expectation of economic benefit. This could include interfering with prospective clients, suppliers, or other business opportunities.

What Must Be Proven?

To succeed in a tortious interference claim, you typically need to prove:

A valid contract or business relationship existed
The interfering party knew about this relationship
The interference was intentional and improper
The interference caused a breach or disruption
You suffered measurable financial damages as a result

Real-World Examples

Tortious interference can take many forms. A competitor might spread false information about your business to your clients, causing them to terminate contracts. A former employee might use confidential information to poach your customers. Or a business partner might convince your suppliers to stop working with you.

What Makes Interference "Improper"?

Not all interference is illegal. Competition is expected in business. The interference must be improper, meaning it involves wrongful methods such as fraud, intimidation, illegal conduct, or using confidential information. Simply offering better prices or services is legitimate competition, not tortious interference.

Contact Pinto Shekib LLP, Your Toronto Contract Litigation Lawyers

If you win a tortious interference claim, you may be entitled to compensatory damages for your financial losses, and in some cases, punitive damages if the conduct was particularly malicious. Courts may also issue injunctions to prevent further interference.