5 Elements You Must Prove in a Tortious Interference Claim
Business relationships are built on trust, steady communication, and the expectation that agreements will be respected. When a third party steps in and disrupts those relationships, the financial and reputational damage can be severe.
Across Indiana, companies of every size rely on business law to protect contracts, customer connections, and long-term opportunities. Tortious interference claims exist for this very reason, giving businesses a way to hold outsiders accountable when they wrongfully disrupt a deal or partnership.
At Smid Law in Fishers, Indiana, we often speak with business owners who feel blindsided when a competitor or former associate interferes with their agreements. In many cases, Indiana business law offers a clear path to recovery when someone intentionally disrupts a valid relationship for improper reasons.
These cases do more than seek compensation; they help reinforce fair dealing in the marketplace. As we move from this broad overview to a closer look at how tortious interference claims actually work, it becomes clear that Indiana business law sets out specific standards that must be met.
A claim will only succeed when each required element is supported by solid evidence, and understanding those elements is the first step toward protecting a company’s rights. Call our experienced business law attorneys with any additional questions or to schedule a free consultation.
How Tortious Interference Fits Into Indiana Business Law
Tortious interference falls under the umbrella of Indiana business law because it addresses wrongful conduct that harms economic relationships. These claims may involve interference with a written contract, a pending deal, or an ongoing business expectancy such as a regular customer relationship.
Indiana courts have long recognized that fair competition is allowed, but intentional and improper disruption isn’t. This balance is a central feature of business law, allowing companies to compete while still protecting lawful agreements and business prospects from underhanded conduct.
In practice, tortious interference claims often arise when a third party knowingly inserts itself into an existing relationship to gain an unfair advantage. Indiana business law evaluates not only the outcome of the interference but also the intent and methods used.
Actions such as spreading false information, pressuring a party to breach a contract, or improperly using confidential business knowledge can shift lawful competition into actionable misconduct.
The First Element: A Valid Contract or Business Relationship
The starting point for any tortious interference claim is proving that a valid contract or business relationship existed. Under Indiana business law, this can include a signed agreement, an ongoing supply arrangement, or a clear expectancy of continued business.
At Smid Law, we regularly review the following:
Contracts
Emails
Invoices
This will help to show that a real relationship was in place before the interference occurred. Without this foundation, Indiana business law does not provide a remedy, so this element is often the first focus of a case.
Indiana courts do not require every relationship to be formalized in a single written document, but the evidence must show more than a speculative hope of future business. Consistent prior dealings, renewal patterns, or communications demonstrating mutual intent can establish a protectable relationship.
Strengthening this element early allows attorneys to clearly demonstrate how the interference disrupted a legitimate and legally recognized business interest. Contact us for dedicated representation.
The Second Element: Knowledge by the Interfering Party
A defendant can’t be held responsible unless they knew about the contract or business relationship. Indiana business law requires proof that the interfering party had actual knowledge or was aware of facts that made the relationship obvious.
This might be shown through communications, industry dealings, or prior involvement with one of the parties. At Smid Law, we use discovery tools allowed by business law to uncover emails, messages, and records that reveal what the defendant knew before acting.
The Third Element: Intentional Interference
Mere coincidence isn’t enough to support a tortious interference claim. Indiana business law requires proof that the defendant acted with the purpose of disrupting the contract or business relationship.
Intent can be shown through actions such as urging a customer to break a contract, spreading false information, or offering improper incentives to lure someone away. These acts go beyond healthy competition and cross into conduct that business law is designed to stop.
The Fourth Element: Lack of Justification
Not all interference is unlawful. Indiana business law allows competition, but it draws the line when actions are unjustified. A defendant must have acted without a legitimate business reason.
For example, providing truthful information or making a better offer in good faith may be allowed. However, deception, coercion, or using inside information to sabotage a deal isn’t. Our attorneys at Smid Law evaluate whether the defendant’s conduct fits within the boundaries set by Indiana business law.
The Fifth Element: Resulting Damages
A successful tortious interference claim must show actual harm. Under Indiana business law, this can include lost profits, canceled contracts, or reputational harm that affects future business.
Financial records, canceled orders, and customer testimony all help demonstrate the impact of the interference. Without provable damages, business law does not permit recovery, even if the other elements are present.
Legal Guidance Matters
Tortious interference cases require careful alignment with the rules of Indiana business law. Missing even one element can weaken a claim.
At Smid Law, we work with businesses to build cases that reflect both the facts and the applicable legal standards. By understanding how business law treats these disputes, companies can defend their contracts, protect their relationships, and seek fair recovery when interference causes harm.
We’re proud to serve clients across Indianapolis, Fishers, Carmel, Noblesville, Zionsville, and the surrounding areas of Indiana, including both Hamilton County and Marion County. Call today for more information.