Interference with Economic Relations

Interference with economic relations is a legal ground in Canada that is used as a cause of action when one party interferes with the economic interests of another party. The courts in Canada have held that there must exist an intention to harm the economic relations of the plaintiff. It is not sufficient that there merely was economic harm, as that harm may have been incidental. What is crucial is the intention to harm or impede business.

Interference with Economic Relations

For example, a group of shareholders are looking to sell their company yet one of the shareholders is opposed. The opposing shareholder is given an opportunity to buy the company, which he or she rejects. The remaining shareholders proceed to attempt to sell the company to another party; the disgruntled shareholder begins to undermine their attempts by limiting access to the property and causing various disturbances. As long as the shareholder’s intention was to inflict harm on the business by interfering with their economic relations, the remaining shareholders will have a valid cause of action against their disgruntled counterpart.

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