Tortious Interference With Contract & Prospective Economic Advantage / Business Relations Litigation (New York)
When a signed deal collapses because a competitor stepped in, that is not just aggressive business strategy. Under New York law, it may constitute tortious interference with contract and / or tortious interference with prospective economic advantage, also called prospective business relations.
Tortious Interference in High-Stakes Transactions
Lieb at Law represents businesses, investors, private equity firms, and executives in high-stakes commercial litigation involving tortious interference, exclusivity breaches, and intentional disruption of business transactions.
These disputes commonly arise in mergers and acquisitions, asset purchases, financing arrangements, private equity investments, and other complex commercial deals where a third party knowingly interferes with a binding agreement for its own benefit. Particularly where deals are not finalized, a purchaser may leverage due diligence to gain proprietary knowledge and then interfere with the target’s contracts and relations.
We litigate these matters aggressively and strategically, with a deep understanding of how New York courts distinguish lawful competition from actionable misconduct.
Tortious Interference With Contract Under New York Law
Under New York law, tortious interference with contract is generally alleged where a third party:
- Has knowledge of a valid, enforceable contract
- Intentionally induces one party to breach that contract
- Acts without legal justification
- Causes damages as a result of the breach
In deal-related disputes, tortious interference frequently involves exclusivity provisions, no-shop clauses, confidentiality obligations (non-disclosure agreements), and other contractual restrictions designed to protect a pending transaction. Courts do not excuse interference simply because it occurs in a competitive marketplace or involves a higher competing offer.
Common Deal Sabotage Scenarios We Litigate
Our attorneys handle tortious interference claims arising from:
- Asset purchase agreements with exclusivity or no-shop clauses
- Failed or disrupted mergers and acquisitions
- Private equity and alternative investment transactions
- Financing deals and loan origination platforms
- Competing bids submitted during active exclusivity periods
- Side payments, incentives, or pressure tactics used to trigger a breach
- Interference carried out through affiliates, portfolio companies, or newly formed entities
These cases often involve layered corporate structures, fast-moving deal timelines, and substantial financial exposure.
Who We Represent
Lieb at Law offers representation to:
- Buyers whose signed transactions were derailed by third-party interference
- Sellers accused of breaching exclusivity or deal restrictions
- Private equity firms and investment funds defending interference claims
- Portfolio companies pulled into acquisition-related litigation
- Executives and deal professionals named individually in tortious interference actions
We understand how these disputes are litigated from every angle and build strategy accordingly.
Why Tortious Interference Cases Require Specialized Litigation Strategy
Tortious interference claims are fact-intensive and are often decided on early motion practice or expedited discovery. Key issues include:
- What the defendant knew about the contract and when
- Whether exclusivity or contractual restrictions were properly triggered
- How competing offers were structured, communicated, and documented
- Whether inducements crossed the line from competition to misconduct
- Whether the defendant can legitimately assert an economic interest defense
- Spoliation / Adverse Inference motions for destroyed / missing evidence
We build cases and defenses designed to withstand dismissal motions, survive discovery, and position matters for trial or favorable resolution.
Litigation-first representation for high-stakes deal disputes.
Tortious interference and deal sabotage claims are not routine business disputes. They involve contractual leverage, reputational risk, and significant financial consequences. If a competitor interfered with your transaction, or if you are being accused of crossing the line, Lieb at Law can help you assess exposure and act decisively.
This page is for general information and is not legal advice. Prior results do not guarantee a similar outcome. Contacting the firm does not create an attorney-client relationship. Please avoid sending sensitive details until a conflicts check is completed and an engagement is confirmed.
Tortious Interference Litigation FAQs (New York)
These are common questions in deal sabotage disputes. For advice about your situation, request a consult so we can review the contracts, communications, and timeline.
What is the difference between lawful competition and tortious interference?
Lawful competition generally allows parties to pursue business opportunities. Tortious interference focuses on conduct that knowingly induces a breach of an existing contract or improperly interferes with prospective business relations. In deal disputes, the analysis often turns on knowledge of contractual restrictions and the method of inducement.
Can offering better terms be tortious interference?
Yes. Under New York law, offering better terms can support a tortious interference claim when the offering party knows a binding agreement exists and intentionally induces a breach, including through pressure tactics, side arrangements, or circumventing exclusivity obligations.
Do I have to prove the deal would have closed?
Causation and damages are case-specific. In contract interference cases, the question is often whether the breach would have occurred but for the defendant’s conduct. Courts evaluate the record, readiness to close, and compliance with deal terms.
Can private equity firms be held liable for tortious interference?
Potentially. Private equity firms, investment groups, and affiliates may face claims if they knowingly induced a breach or intentionally interfered with business relations. Liability depends on what was known, what actions were taken, and how the transaction was structured.
Can executives be personally named in these lawsuits?
Potentially. Executives and deal professionals may face individual claims if they personally participated in or directed the alleged interference. Whether individual liability applies depends on the facts and pleadings.
What is the economic interest defense?
A defendant may argue it acted to protect a legitimate existing financial interest in the breaching party. The scope of the defense is fact-specific and does not apply simply because the defendant wanted the deal.
What damages are available in tortious interference cases?
Damages may include lost profits, lost deal value, transaction costs, and reliance damages. In rare cases, punitive damages may be pursued depending on the conduct.
How quickly should I take action?
Immediately. Evidence and leverage move quickly in deal-related disputes. Delay can affect injunction options, discovery strategy, and recovery. Preserving communications and deal documents is critical.
Need help now?
If a competitor interfered with your transaction, or you are being accused of deal sabotage, contact Lieb at Law for a confidential consultation.
Submitting information through the website does not create an attorney-client relationship. Please avoid sending sensitive details until a conflicts check is completed and an engagement is confirmed.
Other Commercial and Business Dispute Litigation
Lieb at Law litigates complex business and commercial disputes across New York, including contract claims, fiduciary breaches, and high-stakes litigation between companies, investors, and executives.