Is Someone Trying to Interfere With Your Business?

Every business relationship is built on trust, intention, and forward movement. But what happens when a third party inserts itself into the mix, disrupts your contract, or derails a promising deal? These situations often give rise to what Arizona law calls tortious interference.

Whether you’re operating a fast-growing tech firm in downtown Phoenix or a family-run construction company near South Mountain, your ability to build and maintain strong business relationships is critical. When outsiders intentionally harm those ties, the law offers a way to respond. This post breaks down what tortious interference means in Arizona, how it applies to your business, and how to recognize the signs before it causes lasting damage.

What Does Arizona Law Say About Tortious Interference?

Arizona recognizes two main types of tortious interference:

  1. Interference with Contractual Relations – when someone intentionally causes one party to breach a contract. 
  2. Interference with Business Expectancy – when someone disrupts a business relationship or opportunity that has not yet become a contract but was likely to materialize. 

The Arizona Supreme Court has affirmed this in decisions, holding that intentional and improper interference with a contract or expected relationship can result in civil liability.

These claims are handled under Arizona common law, not a specific statute, and are shaped by case decisions and the Restatement (Second) of Torts, which Arizona courts regularly cite when analyzing such disputes.

What Elements Must Be Proven in a Tortious Interference Claim?

To bring a successful tortious interference claim in Arizona, the injured party must prove five essential elements:

  1. A valid contractual relationship or business expectancy existed 
  2. The defendant knew about that relationship or expectancy 
  3. The defendant intentionally interfered 
  4. The interference was improper 
  5. The interference caused actual damage 

Each element must be proven with specific facts. A vague complaint that “someone got in the way” is not enough. The plaintiff needs to show the defendant’s actions were deliberate and aimed at disrupting a legitimate business relationship.

In contract-based interference, there must be an existing, enforceable agreement. Expectancy claims must be more than hope; they need to be based on a realistic, identifiable business opportunity, such as a pending deal, a long-standing vendor relationship, or negotiations in progress.

What Makes the Interference “Improper”?

This is the gray area and often the most hotly contested part of these claims.

Not every interference is legally actionable. Arizona courts weigh whether the defendant’s conduct crossed the line from competitive or self-interested into wrongful or malicious. Courts may look at:

  • Whether the defendant used deception, threats, or coercion 
  • Whether the conduct violated laws or public policy 
  • Whether the defendant acted solely to cause harm without benefit to themselves 
  • Whether the method of interference involved defamation, fraud, or breach of fiduciary duty 

In business, competitive pressure is expected. But there is a difference between strategic competition and targeted sabotage. Arizona law protects your right to fair competition and your right to sue when that line is crossed.

What Are Common Examples of Tortious Interference in Phoenix Business Cases?

Here are a few examples that could give rise to valid claims:

  • A former employee persuades a major client to cancel a contract, using confidential information 
  • A competitor spreads false rumors about your business to scare off investors 
  • A third party pressures your supplier to breach an exclusive distribution agreement 
  • A developer convinces a city contractor to back out of a signed agreement without justification 

In Maricopa County Superior Court, we often see these claims in the real estate, professional services, and tech industries, where long-term client relationships and project timelines are critical.

How Can a Defendant Defend Against a Tortious Interference Claim?

Arizona law also allows several defenses to be raised in tortious interference lawsuits. The most common include:

  • Privilege or Justification – The defendant acted to protect their own legal interest, not to harm 
  • Lack of Knowledge – The defendant didn’t know about the contract or expectancy 
  • No Improper Conduct – Their actions were lawful and business-driven, not malicious 
  • No Actual Damage – The business relationship fell apart for other reasons 

In some cases, a defendant might show that the plaintiff’s contract was unenforceable or had already been breached by the plaintiff themselves, making interference irrelevant.

Why Does This Matter for Your Phoenix Business?

Phoenix is a fast-moving commercial hub. With projects launching in downtown Tempe and the broader East Valley, it’s easy to assume that growth alone protects your business. But relationships are fragile.

Whether you run a logistics firm near I-10, a supplier operating along the Loop 202, or a boutique service company in Scottsdale, you’re vulnerable to outside actors trying to benefit from your hard-earned relationships. Sometimes that actor is a former partner. Sometimes it’s a competitor, an investor, or even an internal stakeholder.

You need a clear legal understanding of where interference ends and liability begins.

What Should You Do If You Suspect Interference?

Step one: Document everything. Gather emails, texts, agreements, call logs, invoices, and other communications that show the relationship and the disruption.

Step two: Identify the actor. You cannot sue a party to your contract for interference; they must be a third party.

Step three: Assess the motive and method. Was it honest competition, or was there a deliberate effort to cause harm?

Step four: Talk to a business litigation attorney who understands how interference is proven and defended in Arizona courts.

Are You Ready To Fight Back?

At Resolvere Law PLLC, we help clients navigate the uncertainties of business disruption. Our legal strategy begins with clear situational awareness: Where are we now? What do you want? How do we get there?

Tortious interference claims require more than legal theory; they require evidence, focus, and the ability to adapt mid-course. Our clients leverage Mark’s domestic and international business experience to clarify the issue and chart a path forward.

Call us at 480-568-1327 to schedule a consult. Ask and it is given.