Tortious interference with contract—also known as intentional interference with contractual relations or business expectancy—is a civil claim or cause of action based on interference with a contract or a prospective contract that is about to be completed—by a person or entity who is not a party to the contract (third party).
A claim for tortious interference is based on the idea that the third party encouraged or induced one of the parties to the contract to breach the contract, causing damages to the nonbreaching party, who may sue the third party to recover those damages or losses. In some states there is a requirement that the interference be done maliciously or without justification.
Laws regarding claims for tortious interference with contract vary from state to state. Some states have broadened the protections against interference beyond situations where there is an existing contract and recognize claims for interference with prospective economic advantage or business relations.
But whether there is an existing contract or not, some instances of interference will not create legal liability and will be recognized as legitimate competitive activity, for example.
In Nebraska, tortious interference with a contract or business expectancy is recognized as a legitimate legal claim. To establish a claim for tortious interference, the plaintiff must prove the existence of a valid contract or business expectancy, the defendant's knowledge of the contract or expectancy, intentional and unjustified interference by the defendant that caused a breach or termination of the contractual relationship or expectancy, and resulting damage to the plaintiff. Nebraska courts require that the interference be intentional and without justification, which means that the interference must be more than accidental or incidental to some other legitimate purpose. The state distinguishes between improper interference and lawful competition, acknowledging that not all interferences are actionable, especially when they stem from legitimate business practices. If a third party induces a breach of contract without proper cause, they may be liable for damages. However, actions that are considered fair competition or are otherwise justifiable do not typically give rise to liability for tortious interference in Nebraska.