When you own or operate a business in Tennessee, one potential legal issue you may encounter is interference with business relationships. This occurs when a third party intentionally disrupts your company’s existing relationships with its customers, suppliers, or other business partners. Depending on the nature and extent of the interference, it could lead to significant financial losses for your business.
Fortunately, Tennessee law provides protection against this type of interference. Here’s what you need to know about interference with business relationships and how to pursue legal action if it happens to you.
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What Is Interference With Business Relationships?
Interference with business relationships occurs when a third party intentionally causes harm to your company by disrupting its existing or potential business relationships. This could include customers, suppliers, distributors, marketing partners, or anyone else who plays a crucial role in your business operations.
In some cases, the third party may interfere by persuading your customers to buy from a competitor or by convincing suppliers to cease doing business with your company. Other types of interference could involve the dissemination of false or negative information about your company, or even sending threatening messages to your business partners with the intention of causing them to sever their relationship with your business.
Regardless of specific tactics used, interference with business relationships is illegal under Tennessee law.
Understanding Tennessee Law on Interference With Business Relationships
Under Tennessee law, anyone who intentionally interferes with your business relationships can be held liable for the damages they cause. There are two types of interference recognized by Tennessee courts: intentional interference with contracts and intentional interference with business relationships.
Intentional Interference with Contracts
Intentional interference with contracts means that someone intentionally persuades one party to breach their contract with your business. The breach must result in a loss or injury to your business. The individual or entity who interfered with the contract could then be held liable for any damages.
Intentional Interference with Business Relationships
Intentional interference with business relationships occurs when a third party intentionally disrupts an existing or potential business relationship between your company and its customers, suppliers, or other partners. The interference must cause harm to your business, and the third party must have had no legitimate reason to take such action.
Pursuing Legal Action for Interference With Business Relationships
If you believe that someone has intentionally interfered with your business relationships, you can pursue legal action to hold them accountable for any damages caused. However, there are certain steps you must take before filing a lawsuit, including:
- Gather evidence: You must have substantial evidence to support your claim, including documentation of the interference and any subsequent harm caused to your business.
- Identify the party responsible: You must identify the individual or entity responsible for the interference. This can be tricky if there are multiple parties involved, so it’s essential to conduct thorough research and gather as much information as possible.
- Consult with an attorney: Interference with business relationships can be complex, so it’s crucial to consult with an experienced attorney who can help you navigate the legal process.
Potential Damages in Interference With Business Relationships Cases
If you are successful in your lawsuit, you could be entitled to financial compensation for any damages caused by the interference, including:
- Lost profits: If the interference led to a significant decline in business, you may be entitled to compensation for lost profits.
- Negative reputation: If the interference resulted in damage to your business’s reputation, you could recover damages for any harm caused.
- Legal fees: If you had to hire an attorney and incur legal fees to pursue your case, you could recover those costs as well.
In some cases, you may also be entitled to punitive damages if the interference was particularly egregious or malicious.
Conclusion
Interference with business relationships can be devastating for any business, but Tennessee law provides a way to hold third parties accountable for their actions. If you believe that someone has intentionally interfered with your business relationships, it’s essential to consult with an experienced attorney who can guide you through the legal process and help you pursue compensation for any damages caused. By taking swift and decisive action, you can protect your business and hold those responsible accountable for their actions.