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Casebook Read Credits
Introduction to the U.S. Legal System, Spring/Summer 2022
Resource 1 . 2
13 minutes

PMC, Inc. v. Saban Entertainment, Inc.

Tortious Interference

Johnathan McCaskill

Tortious interference is a common law tort that most often arises in commercial litigation when one party damages another party’s contractual or business relationship with others. Most jurisdictions recognize separate claims for tortious interference with contract and tortious interference with business relationships. Some jurisdictions also recognize other types of tortious interference claims, such as tortious interference with an expected inheritance.
Tortious interference with contract arises when a defendant intentionally convinces or causes a third party to breach its contract with the plaintiff, which results in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with contractual relationship or contract rights.
Tortious interference with business relationship is a similar claim that typically arises when no valid contract exists and a defendant intentionally interferes with the business relationship between a third party and the plaintiff, resulting in damages to the plaintiff. Some courts refer to the claim by other names, such as tortious or intentional interference with prospective or existing business advantage, tortious or intentional interference with prospective or existing economic advantage, and tortious or intentional interference with business expectancy.
Our next case examines a situation where the plaintiff alleged that the defendnant engaged in both tortious interefence of a contract and interference with a business relationship. As you read the case, ask yourself whether this is wrongful conduct or "hard-nosed" business negotiations.

Court of Appeal of the State of California
45 Cal. App. 4th 579
No. B093683
1996-05-16

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