What Is Tortious Interference in Kentucky?
If a third party deliberately interfered with your business relationship or contract — causing you to lose a deal, a client, or an employee — you may have a claim for tortious interference under Kentucky law. This is a powerful business litigation tool that holds people and companies accountable for intentionally disrupting someone else’s economic relationships.
Two Types of Tortious Interference
Kentucky recognizes two related but distinct claims:
Tortious interference with a contract occurs when a third party, knowing that a valid contract exists, intentionally induces one of the parties to breach it, causing damages. For example, a competitor who deliberately lures away your key employee who is under a non-compete agreement may be liable for tortious interference.
Tortious interference with a prospective business relationship (also called interference with a business expectancy) applies when there’s no existing contract, but there is a reasonable expectation of a business relationship that a third party intentionally disrupts. For example, if a competitor spreads false information about your company to a potential client, causing you to lose the deal, that may support a claim.
The Elements
To prevail on a tortious interference claim in Kentucky, you generally need to prove the existence of a valid contract or business expectancy, the defendant’s knowledge of that contract or expectancy, an intentional act by the defendant that induced a breach or disrupted the expectancy, that the interference was improper (not justified by legitimate competition or other privilege), and that you suffered actual damages as a result.
The “Improper Interference” Question
Not all interference is actionable. Kentucky courts recognize that legitimate competition can involve “interfering” with someone else’s business — that’s how markets work. The key question is whether the interference was improper. Courts consider factors like the nature of the defendant’s conduct (was it independently wrongful, like fraud or threats?), the defendant’s motive, the interests being advanced, and the social utility of the conduct. Ordinary competitive activity is generally protected; underhanded tactics are not.
Damages
A successful tortious interference claim can recover the economic losses caused by the interference — lost profits, the cost of replacing an employee, the value of a lost business opportunity, and similar damages. Where the defendant’s conduct was particularly egregious, punitive damages may also be available.
If someone is deliberately sabotaging your business relationships, call me at (859) 225-9540 or use the contact form.
Joseph D. Buckles is a civil litigation attorney at Buckles Law Office, PLLC in Lexington, Kentucky.
