Also known as: interfere with trade · interfering with trade · interfered with trade · restraint of trade
Written by attorneys · grounded in primary & secondary sources — see below
A tort imposing liability on a defendant who intentionally interferes with the plaintiff's prospective business or economic relations through independently wrongful conduct that causes the plaintiff economic harm.
Imani Idowu sold her regional waste-hauling routes to Iris Energy under a contract that included a promise not to solicit former customers for three years. A new competitor offered to buy the same routes at a higher price and induced Imani to breach the noncompete by soliciting the former customers anyway. Iris Energy later sued the competitor for interference with trade after the breach destroyed its expected customer relationships.
Imperial Motors refused to purchase aluminum components from Ideal Solutions after Ideal Solutions began supplying a smaller rival. Imperial's refusal followed its acquisition of the only local smelter, leaving Ideal Solutions without alternative buyers. Ideal Solutions sued Imperial for interference with trade, alleging the exclusionary conduct destroyed its expected sales.
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Isla Ireland organized a consumer boycott urging residents to stop shopping at Imperial Motors after the company refused to hire local workers. The boycott caused a sharp drop in sales and forced Imperial Motors to close two locations. Imperial Motors sued the organizers for interference with trade arising from the coordinated refusal to deal.
Galella repeatedly followed Imani Idowu, a prominent actress, and her business manager to film private meetings with potential film investors. The constant surveillance caused several investors to withdraw funding. Imani sued Galella for interference with trade, claiming the harassment disrupted her prospective production deals.
Infinity Bank obtained prescriber data from IMS Health Inc. to target physicians for its new loan products. After a state law barred the sale of that data for marketing, Infinity Bank lost expected revenue from its campaign. Infinity Bank sued the state for interference with trade, alleging the restriction prevented it from pursuing legitimate business relationships.
The plaintiff must show that the defendant used means that are independently tortious or otherwise unlawful, such as defamation or violation of a statute, rather than mere competitive conduct.
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A promise that imposes an unreasonable restraint of trade under Restatement (Second) of Contracts § 188 can supply the wrongful act element when a third party induces breach of that promise, provided the inducement causes economic loss.
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Yes. Once liability is established, the plaintiff may recover both general damages for reputational or relational harm and special damages consisting of provable pecuniary losses such as lost client fees that were caused by the interference.
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…outdoor fires” might forbid “burning a flag,” R. A. V., supra , at 385; and why antitrust laws can prohibit “agreements in restraint of trade,” Giboney v. Empire Storage & Ice Co. , 336 U. S. 490, 502 (1949). But §4631(d) imposes more than an incidental burden on protected expression. Both on its face and in its practical…