Tortious interference in California

Elements

1. 1

   Protected relationship or expectancy

   A contract, or a business relationship with a reasonable probability of future economic benefit.

2. 2

   Knowledge

   The defendant knew about that relationship.

3. 3

   Intentional interference

   The defendant deliberately and unjustifiably caused a breach or a break-up of the relationship.

4. 4

   Damage

   The plaintiff lost the deal, the customer, or the economic benefit.

Burden of proof

Preponderance of the evidence. Some jurisdictions require a higher showing of malice or lack of justification.

A California fact pattern

A venture term sheet in Palo Alto is blown up after a competitor, knowing the round is circulating, calls LPs with a fabricated “key-person” rumor. California distinguishes interference with contract from interference with prospective economic advantage, the latter needs independently wrongful conduct.