Business Interference Disputes

Business interference disputes, also known as tortious interference with business relations, occur when a third party intentionally disrupts or interferes with existing contractual or business relationships between two parties. This interference can lead to financial losses, damage to reputation, and legal disputes.

Common Causes

  • Competitors attempting to steal clients or customers by making false claims about a business.
  • Unlawful inducement of breach of contract by persuading employees or suppliers to terminate their agreements with a company.
  • Spreading false information or rumors about a business to harm its reputation and credibility in the market.

Helpful Insights

In cases of business interference disputes, it’s essential to gather evidence to prove the intentional interference and resulting damages. Mediation can be a beneficial alternative dispute resolution method, allowing parties to discuss their grievances in a neutral setting and work towards a mutually acceptable resolution. Mediators can help facilitate communication, clarify misunderstandings, and guide parties towards a fair and amicable agreement.

Contractual Interference Disputes

Contractual interference disputes arise when a third party interferes with the performance of an existing contract between two parties, causing one or both parties to suffer financial losses or other damages. This interference can take various forms, including inducing breach of contract, interference with contractual negotiations, or wrongful termination of contractual relationships.

Common Causes

  • Intentional actions by competitors to disrupt contractual relationships between a company and its suppliers, distributors, or clients.
  • False representations or promises made by a third party to induce one party to breach its contractual obligations.
  • Coercion or threats aimed at forcing one party to terminate a contract with another party.

Helpful Insights

In contractual interference disputes, it’s crucial to carefully review the terms of the existing contract and assess the extent of the interference and resulting damages. Mediation can offer a less adversarial approach to resolving such disputes compared to litigation, allowing parties to preserve business relationships and avoid prolonged legal battles. Mediators can help parties explore creative solutions, negotiate fair compensation, and restore trust between the parties involved.


What is tortious interference?

Tortious interference refers to intentional interference with contractual or business relationships between other parties, leading to financial harm or other damages.

How can mediation help resolve tortious interference disputes?

Mediation provides a confidential and collaborative environment for parties to discuss their concerns, identify underlying interests, and negotiate mutually acceptable solutions with the assistance of a neutral mediator.

What evidence is needed to prove tortious interference?

Evidence of intentional interference, such as communications, documents, or witness testimony, is crucial to proving a tortious interference claim. Damages resulting from the interference should also be documented.

Can parties seek damages in tortious interference mediation?

Yes, parties can seek compensation for financial losses, reputational damage, and other harms caused by the interference. Mediation allows parties to negotiate a settlement agreement that includes appropriate remedies for the damages suffered.

Is mediation legally binding in tortious interference disputes?

While the outcome of mediation is not legally binding unless parties reach a settlement agreement, a mediated settlement can be enforced through a legally binding contract once finalized by the parties.

How long does tortious interference mediation typically take?

The duration of tortious interference mediation can vary depending on the complexity of the dispute, the willingness of parties to cooperate, and the availability of relevant information. Some cases may be resolved in a single session, while others may require multiple sessions over several weeks or months.

Who can participate in tortious interference mediation?

All parties directly involved in the dispute, including the plaintiff, defendant, and any relevant third parties, can participate in tortious interference mediation. Parties may also choose to be represented by attorneys or other advisors during the mediation process.

What are the advantages of choosing mediation over litigation for tortious interference disputes?

Mediation offers several advantages, including cost-effectiveness, confidentiality, flexibility in decision-making, and the opportunity to preserve business relationships and reputations.

Can parties still pursue litigation after attempting mediation for tortious interference disputes?

If mediation is unsuccessful in resolving the dispute, parties may choose to pursue litigation through the court system to seek a judicial resolution. However, many disputes are successfully resolved through mediation without the need for litigation.

How can parties prepare for tortious interference mediation?

Parties should gather relevant documents, evidence, and information to support their claims or defenses, identify their goals and interests, and be open to engaging in constructive dialogue and negotiation during the mediation process.