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Trump and ABC may have broken the law by getting Jimmy Kimmel suspended, and it could be a multi-billion-dollar mistake. 3rd party contract interference, also known as tortious interference, is a legal claim that arises when a person or business unjustly disrupts a contract or business relationship between two other parties, causing harm. A third party, or defendant, can be held liable for damages resulting from their improper actions. [1, 2, 3, 4] There are two primary types of tortious interference: • Tortious interference with an existing contract: A third party intentionally causes one party to breach a valid, existing contract with another. • Tortious interference with prospective economic advantage: A third party interferes with a reasonable business expectation or a potential, future business relationship, even if no formal contract exists yet. [2, 5, 6] Elements of a tortious interference claim While the specific elements can vary by state, a successful claim generally requires proving the following: • Valid relationship: There was a valid contract or business relationship between the plaintiff and a third party. • Knowledge of the relationship: The defendant knew about this contract or relationship. • Intentional interference: The defendant intentionally and improperly interfered with the contract or relationship. Actions must be deliberate, not accidental. • Causation: The defendant's conduct was the direct cause of the breach or disruption of the relationship. • Damages: The plaintiff suffered actual harm, such as financial loss, as a result of the interference. [4, 7, 8, 9, 10] Examples of improper conduct To qualify as tortious interference, the conduct must go beyond normal, fair competition and be considered improper. Examples include: • Inducement: Offering a party a better deal to convince them to breach their contract with a competitor. • Wrongful means: Using illegal or unethical tactics, such as threats, blackmail, misrepresentation, or fraud, to disrupt the relationship. • Sabotage: Intentionally damaging a competitor's business operations to cause a contract to fail. [2, 11, 12, 13, 14] Example case A famous example of a tortious interference claim involved Pennzoil and Texaco: 1. In 1984, Pennzoil made a bid to purchase a controlling stake in Getty Oil. After an agreement was made, Pennzoil issued a press release announcing the deal. 2. Before the deal was finalized, Texaco made a more lucrative offer to Getty Oil and convinced Getty to abandon its agreement with Pennzoil. 3. Pennzoil sued Texaco for tortious interference with a prospective contract. 4. A jury awarded Pennzoil $10 billion in damages, though the case was later settled for $3 billion. [15, 16, 17, 18, 19] AI responses may include mistakes. [1] https://www.law.cornell.edu/wex/intentional_interference_with_contractual_relations [2] https://www.tbmlawyers.com/blog/what-is-tortious-interference [3] https://isenberg-hewitt.com/complex-business-litigation/business-tort-litigation/interference-with-contractual-or-business-relations/ [4] https://www.law.cornell.edu/wex/intentional_interference_with_contractual_relations [5] https://millerlawpc.com/tortious-interference-contract/ [6] https://millerlawpc.com/tortious-interference-contract/ [7] https://duwellaw.com/blog/what-you-need-to-know-about-tortious-interference/ [8] https://www.courts.state.co.us/userfiles/file/Court_Probation/Supreme_Court/Committees/Civil_Jury_Instructions_Committee/Chapter%2024.pdf [9] https://cochelllawfirm.com/blog/interference-with-contract/ [10] https://thecampbelllawgroup.com/economic-sabotage-an-introduction-to-tortious-interference/ [11] https://trepanierlaw.com/tortious-interference-the-triangular-tort/ [12] https://www.kaplancruz.com/blog/2024/07/what-happens-if-a-third-party-interferes-with-an-existing-contract/ [13] https://imperiallawoffice.com/blog/remedies [14] https://mcmahonsolicitors.ie/interference-with-relationships/ [15] https://www.coffylaw.com/what-you-need-to-know-about-tortious-interference/ [16] https://www.motonlegalgroup.com/8-elements-of-contract-law/ [17] https://scholarship.law.vanderbilt.edu/cgi/viewcontent.cgi?article=2689&context=vlr [18] https://juro.com/learn/verbal-contract [19] https://www.acerislaw.com/what-to-expect-from-arbitration-over-a-letter-of-intent/