Imagine this scenario: You’ve spent months negotiating a lucrative business opportunity—perhaps a merger, a strategic partnership, or an executive employment agreement. Just as the deal is about to close, a third party deliberately steps in and disrupts it, causing the opportunity to evaporate. If this interference was done using underhanded tactics or with pure malice, you may have a legal claim under tortious interference with prospective economic relations in New York.

What Is Tortious Interference with Prospective Economic Relations?

Tortious interference with prospective economic relations occurs when a third party wrongfully disrupts a business opportunity that had a strong likelihood of materializing. Unlike interference with an existing contract, this claim involves future business prospects—deals that were close to happening but never solidified or consummated because of another party’s wrongful conduct.

To successfully bring a claim in New York, a plaintiff must prove:

1. A bona fide business opportunity existed (e.g., a near-finalized deal or strong business relationship).
2. The defendant knew about the opportunity.
3. The defendant intentionally interfered with the opportunity.
4. But for the interference, the deal would have gone through.
5. The interference was achieved through wrongful means or was done for the sole purpose of causing harm.
6. The plaintiff suffered damages as a result.

This is a high bar to meet, and New York law strongly favors fair competition. However, when interference crosses legal or ethical boundaries, the injured party may have recourse.

What Is Considered “Wrongful Means”?

Not all competitive behavior is illegal. The law allows businesses and individuals to compete aggressively, even if it disrupts another's business. However, if interference involves a legal tort, which generally involves fraud, coercion, or other illegal conduct, it may be actionable.

Under New York law, wrongful means needs to be an independent tort, and may include:

1. Fraud or misrepresentation – Spreading false information, possibly about a business deal or misleading a third party into breaking off negotiations.
2. Economic coercion – Using undue financial pressure to force a party to abandon a deal.
3. Frivolous lawsuits – Filing baseless litigation purely to disrupt a competitor’s business relationship.
4. Defamation – Publicly making false statements that damage a company’s or individual’s reputation, leading to lost business opportunities.
5. Breach of fiduciary duty – If a trusted advisor, employee, or partner intentionally sabotages a deal for personal gain.

What does not qualify as wrongful means?

• Mere persuasion or aggressive competition is not enough, even if it results in lost business.
• Offering a better deal to a prospective business partner is lawful unless it involves deceit or coercion.

The “Sole Purpose” Exception: When Pure Malice Becomes Liability

Even if wrongful means or an independent tort are not used, liability can still arise if the defendant acted with the sole purpose of harming the plaintiff. For example, a former business partner, out of spite, convinces a potential investor not to fund your venture—not for their own gain but purely to see you fail. However, if the defendant had any legitimate business reason (such as pursuing their own financial interests), they will likely avoid liability under this standard. Harming you with no benefit to the defendant has to be the sole purpose of the interference.

What Is the Statute of Limitations in New York?

Timing is important in these cases. In New York, claims for tortious interference with prospective economic relations must be filed within three years from the date of injury. Once the wrongful interference occurs, the clock starts ticking. Waiting too long could result in losing your ability to recover damages.

Have You Been a Victim of Tortious Interference?

If you are a professional, executive, or business owner and have suffered a lost business opportunity due to deception, coercion, or intentional harm, you may have a legal claim. Ask yourself:

1. Was I on the verge of finalizing a business deal that was suddenly derailed?
2. Did a third party interfere with my plans using fraud, threats, or bad-faith legal action?
3. Was the interference malicious or designed to block my success rather than benefit the other party’s own business or economic interest?
4. Did I suffer financial losses, reputational harm, or setbacks as a direct result?

If the answer is yes, then it may be time to explore your legal options.

Protecting Your Business Interests with The Glennon Law Firm, P.C.

When your business, career, or financial future is on the line, you need a skilled litigation team that understands the stakes. At The Glennon Law Firm, P.C., we focus on protecting professionals, executives, and business owners facing complex disputes, including those involving tortious interference.

If you believe your business was unlawfully interfered with or otherwise sabotaged, don’t wait—contact us today to discuss your case and protect your interests. To learn more about these topics, you may want to review the information provided on our website pages: Employment Law, Business Litigation, Business Torts.

This post is not intended as legal advice, but rather for educational purposes.