Tortious Interference
Tortious Interference:
The Common Situation:
Settlement companies tell a potential client who is in good standing to stop paying one or more MCA or alternative loan companies and purposefully default on their MCA and alternative loan.
They are told to do so because the settlement company will get them a better payback amount, term, or lower payments.
If you are told this by someone, the company you are dealing with is interfering with your contract with another party and that is tortious interference.
What is Tortious Interference?
What is Beacon's Policy on Tortious Interference?
Westlaw defines Tortious Interference:
"A common law tort that most often arises in commercial litigation when one party damages another party’s contractual or business relationship with others. Most jurisdictions recognize separate claims for tortious interference with contract and tortious interference with business relationships. Some jurisdictions also recognize other types of tortious interference claims, such as tortious interference with an expected inheritance.
Tortious interference with contract arises when a defendant intentionally convinces or causes a third party to breach its contract with the plaintiff, which results in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with contractual relationship or contract rights.
The elements of the tort can vary by state but generally include the following:
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A valid contract between the plaintiff and a third party exists.
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The defendant has knowledge of that contract.
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The defendant has the requisite intent to induce the third party to breach the contract with the plaintiff.
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The defendant lacks justification to induce that breach.
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The breach causes damages to the plaintiff.
Tortious interference with business relationship is a similar claim that typically arises when no valid contract exists and a defendant intentionally interferes with the business relationship between a third party and the plaintiff, resulting in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with prospective or existing business advantage, tortious or intentional interference with prospective or existing economic advantage, and tortious or intentional interference with business expectancy.
The elements of the tort can vary by state but generally include the following:
-
A business relationship exists between the plaintiff and a third party that affords the plaintiff some legal right.
-
The defendant has knowledge of that relationship.
-
The defendant has the requisite intent to interfere with the relationship between the third party and the plaintiff.
-
The defendant lacks justification to interfere with that relationship.
-
The breach causes damages to the plaintiff."
The Cornell Law School defines Tortious Interference as the following:
"Tortious interference is a common law tort allowing a claim for damages against a defendant who wrongfully interferes with the plaintiff's contractual or business relationships."
Findlaw (Susan Buckner, JD and Aviana Cooper, Esq) defines Tortious Interference as:
"Wrongful interference in a contract means disrupting a contractual relationship. For instance, a business contracts with a delivery company to ship goods. If the defendant tried to induce the delivery company to breach the contract, it would be tortious interference with the contract."
Tortious Interference:
The Common Situation:
Settlement companies tell a potential client who is in good standing to stop paying one or more MCA or alternative loan companies and purposefully default on their MCA and alternative loan.
They are told to do so because the settlement company will get them a better payback amount, term, or lower payments.
If you are told this by someone, the company you are dealing with is interfering with your contract with another party and that is tortious interference.
What is Tortious Interference?
What is Beacon's Policy on Tortious Interference?
Westlaw defines Tortious Interference:
"A common law tort that most often arises in commercial litigation when one party damages another party’s contractual or business relationship with others. Most jurisdictions recognize separate claims for tortious interference with contract and tortious interference with business relationships. Some jurisdictions also recognize other types of tortious interference claims, such as tortious interference with an expected inheritance.
Tortious interference with contract arises when a defendant intentionally convinces or causes a third party to breach its contract with the plaintiff, which results in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with contractual relationship or contract rights.
The elements of the tort can vary by state but generally include the following:
-
A valid contract between the plaintiff and a third party exists.
-
The defendant has knowledge of that contract.
-
The defendant has the requisite intent to induce the third party to breach the contract with the plaintiff.
-
The defendant lacks justification to induce that breach.
-
The breach causes damages to the plaintiff.
Tortious interference with business relationship is a similar claim that typically arises when no valid contract exists and a defendant intentionally interferes with the business relationship between a third party and the plaintiff, resulting in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with prospective or existing business advantage, tortious or intentional interference with prospective or existing economic advantage, and tortious or intentional interference with business expectancy.
The elements of the tort can vary by state but generally include the following:
-
A business relationship exists between the plaintiff and a third party that affords the plaintiff some legal right.
-
The defendant has knowledge of that relationship.
-
The defendant has the requisite intent to interfere with the relationship between the third party and the plaintiff.
-
The defendant lacks justification to interfere with that relationship.
-
The breach causes damages to the plaintiff."
The Cornell Law School defines Tortious Interference as the following:
"Tortious interference is a common law tort allowing a claim for damages against a defendant who wrongfully interferes with the plaintiff's contractual or business relationships."
Findlaw (Susan Buckner, JD and Aviana Cooper, Esq) defines Tortious Interference as:
"Wrongful interference in a contract means disrupting a contractual relationship. For instance, a business contracts with a delivery company to ship goods. If the defendant tried to induce the delivery company to breach the contract, it would be tortious interference with the contract."
Beacon Client Solutions Tortious Interference Policy
The team at Beacon Client Solutions does not solicit or work with clients who are in good standing with cash advance or alternative loan companies.
If you are in good standing with cash advance or alternative loan companies we encourage you to make your payments. While our firm thinks that the MCA and alternative loan industry is predatory in every way, we also believe that if you have been in good standing and you have been making your payments, continue to do so. We will not work with anyone to interfere with a current contract that is not in default unless it is with another goal such as strategic planning.
Beacon Client Solutions DOES NOT tell potential clients to stop payments, change bank accounts, or default to get out of their current obligations.
Any client who we work with will sign a statement of default confirming that they are in default of their obligation.