13.12 Damages for Tortious Interference with a Contract

• Library: Contract Law in Virginia (Virginia CLE) (2019 Ed.)

13.12 DAMAGES FOR TORTIOUS INTERFERENCE WITH A CONTRACT

Virginia recognizes a cause of action for money damages against one who tortiously interferes with a contract. The elements of this cause of action are: (i) the existence of a valid contractual relationship or business expectancy; (ii) knowledge of the relationship or expectancy on the part of the interferor; (iii) intentional interference inducing or causing a breach or termination of the relationship or expectancy; and (iv) resultant damage to the party whose relationship or expectancy has been disrupted. ⁴⁵³ "However, if a contract is terminable at will or involves only a contract or business expectancy, a plaintiff, in order to present a prima facie case of tortious interference, must allege and prove not only an intentional interference . . . but also that the defendant employed 'improper methods,'" which has essentially become a fifth factor in several cases. ⁴⁵⁴

The Fourth Circuit has held that this fifth factor—"improper methods"—applies only in claims for tortious interference with prospective economic advantage or business expectancy (which includes contracts terminable at will) as opposed to tortious interference with a contractual relationship. ⁴⁵⁵ In Rappahannock Pistol & Rifle Club, Inc. v. Bennett, ⁴⁵⁶ the Supreme Court of Virginia declined to decide whether a plaintiff in fact needs to prove this fifth element in a case involving a contract terminable at will.

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As the Fourth Circuit explained in Commerce Funding Corp. v....