Unlawful outside disruption can cause real financial harm to a healthy business. When an outside party steps in to ruin your business deals or break up your contracts, state law lets you take legal action. A tortious interference claim helps a business recover money lost because of improper third-party actions.
The two types of legal interference
Commercial disputes usually fall into two main groups. State law protects current contracts as well as future business opportunities:
- Intentional interference with a contract
- Intentional interference with prospective business
A claim involving a current contract focuses on an existing deal that an outsider forced someone to break. A claim for prospective business covers future deals that an outsider ruined through improper behavior.
What you must prove in an Arkansas court claim
Under Arkansas law, a business must prove its case by a preponderance of the evidence. That means you must show your claim is more likely true than not. You must prove five specific points under state jury rules:
- A valid contract or business expectation existed.
- The outside party knew about the contract or expectation.
- The outside party intentionally and improperly interfered to cause a disruption.
- The interference directly caused your financial loss.
- Your business suffered actual monetary damage.
Judges and juries look at whether the outsider used unfair tactics to ruin your deal. Proving both direct causation and actual financial loss is necessary to win money damages in court.
Common defenses to a legal claim
Defendants often argue that their actions were part of normal economic competition. An outside party can defend against a claim by showing their conduct was protected under state standards:
- Protecting an existing legal interest or duty
- Acting to further that legitimate interest
- Acting without bad faith
Healthy business competition is allowed under state law. However, using dishonest tactics or illegal methods crosses the line into unlawful interference.
Protect your commercial interests
Unlawful interference can disrupt your work and cost your company thousands of dollars in lost profit. You can help show the harm to your business by gathering emails, contracts and receipts. It is also ideal to speak with a commercial litigation attorney helps protect your legal rights.