Running a business in Georgia requires time, investment, and trust. Business owners invest significant effort in building relationships with customers, vendors, and partners. Most businesses expect competitors to compete fairly. When another business crosses the line and disrupts your contracts or business relationships, you may have a claim for tortious interference with business relations under Georgia law.
In this guide, our Georgia business litigation attorneys explain the main types of interference claims recognized under Georgia law, the elements required to prove tortious interference, and the legal remedies that may be available. To discuss your situation, call (706) 354-4000 or contact our firm online today.
What Is Tortious Interference with Business Relations?
In Georgia, the law protects parties to a contract from unlawful interference by a third party who is a “stranger” to the contract or business relationship. Tortious interference with business relations occurs when a third party intentionally and improperly interferes with a company’s business relationships and causes financial harm. These claims typically involve conduct that goes beyond lawful business competition. Examples include dishonest statements, threats, or other improper tactics.
In many cases, the goal of the interference is to divert business, disrupt operations, or damage a company’s reputation in the marketplace.
What Types of Tortious Interference Claims Can Apply?
Georgia courts generally recognize several categories of tortious interference claims.
Tortious Interference with Contract
A claim for tortious interference with a contract involves an existing, valid agreement between two parties.For example, your company may have a signed agreement with a vendor or customer, and a competitor persuades that party to break the contract so it can take over the business relationship.
Tortious Interference with Prospective Economic Advantage
Tortious interference with prospective economic advantage may apply even when no signed contract exists. Instead, the claim focuses on interference with an expected or reasonably likely business opportunity.
For example, imagine you are in active negotiations with a customer, and a competitor spreads false claims to stop the deal from moving forward. If you can show you had a real expectation of business that was disrupted, this type of claim may apply. These claims often arise in situations involving repeat clients, referrals, or long-standing vendor relationships.
Tortious Interference with Business Relations
Some cases involve broader disruption and fall under the general category of tortious interference with business relations.
Examples include actions that interfere with key vendor relationships or efforts to target your customers through improper tactics. If the conduct causes measurable losses, it may support a claim for tortious interference.
What Are the Elements of Tortious Interference in Georgia?
Tortious interference claims in Georgia typically involve a third party outside the underlying contract or business relationship. That third party intentionally disrupts the relationship.
To pursue a claim, you generally must show:
- Existing relationship. You had a valid contract, ongoing business relationship, or a reasonable business expectancy with another party.
- Knowledge. The defendant (the third party) knew about that relationship and understood it had value.
- Intentional interference. The defendant acted intentionally, not by accident, in a way that disrupted or terminated the business relationship.
- Improper conduct. The interference involved wrongful actions (e.g., fraud, defamation, threats, unlawful behavior), not just aggressive competition.
- Damages. You suffered financial harm directly tied to the interference, such as lost business opportunities or lost income.
The key issue is whether the third party’s conduct crossed the line from lawful competition into wrongful interference that caused measurable financial harm.
What Remedies Are Available?
If you successfully prove tortious interference with business relations, you may recover damages for the harm caused to your business.
Common remedies include compensation for:
- Lost profits
- Lost business opportunities
- Costs associated with business disruption
Courts may also issue an injunction to stop the interference and prevent further harm while the dispute is pending.
In some cases, Georgia law may impose punitive damages to punish the defendant. Punitive damages require a showing that the defendant acted with willful misconduct, malice, fraud, wantonness, oppression, or conscious indifference to consequences.
Why Hire BBGA?
If another business interferes with your contracts or relationships, you need a strategy that protects your company and supports your long-term business goals. At Blasingame, Burch, Garrard & Ashley, P.C. (BBGA), we help Georgia business owners evaluate claims, gather evidence, and pursue damages tied to wrongful interference.
BBGA has represented Georgia businesses for more than 40 years. Our attorneys have earned statewide recognition, including AV Preeminent ratings from Martindale-Hubbell.
We understand Georgia’s business environment and work closely with clients to protect their commercial interests.
Call (706) 354-4000 or contact us online today to discuss how BBGA can help protect your business from wrongful interference.
Frequently Asked Questions
Can I Bring a Tortious Interference Claim Without a Written Contract?
Depending on the situation, you may be able to pursue a claim for tortious interference with prospective economic advantage or with business relations without a contract. You must be able to show the existence of an ongoing business relationship or a likely future business opportunity that a third party wrongfully disrupted.
What Evidence Helps Prove Interference?
Helpful evidence may include contracts, emails, text messages, customer communications, and financial records showing lost revenue.
Is Competition Always Illegal?
No. Competition is legal, but improper interference may create liability.
Legal Sources Referenced:
To ensure the accuracy and clarity of this page, we referenced official legal and other resources during the content development process.
- Georgia Code 13-3-1 (contract elements and formation), link.
- Georgia Code § 51-12-2 (measure of damages), link.
- Cornell Law School, Legal Information Institute (definition of injunction), link.
- Georgia Code § 51-12-5.1 (punitive damages), link.
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