Attorney David Rich Explains Interference With Contract In New York | David Rich Business Litigation

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In New York State, the elements of the tort of interference with contract are “1. The existence of a valid contract with a third party, 2. Defendant’s knowledge of that contract, 3. Defendant’s intentional and improper procuring of a breach, and 4. Damages.”

Some courts in New York further hold that lack of justification is an element that the plaintiff must plead and prove. Additionally, plaintiff must show that the defendant’s actions were the “proximate cause of the third party’s breach. Where these elements have been satisfied, plaintiffs may recover even though” ‘the defendant was engaged in lawful behavior.

In an action for interference with contract, plaintiff may recover “the full pecuniary loss of the benefits” that would have flowed from the contract that was interfered with. In other words, the monies recoverable in an interference with contract action include not only compensatory damages, but also consequential damages.

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