Virginia recognizes a cause of action against those who tortiously interfere with the contractual expectancies of another. To prove tortious interference with business expectancy under Virginia law, a plaintiff must show (1) the existence of a valid business expectancy; (2) knowledge of the expectancy on the part of the interferor;…
The Virginia Business Litigation Blog
Project Manager Sabotages Employer, Ordered to Pay Triple Damages
About a year ago, a disgruntled systems engineer for government contractor Federated IT was sentenced to two years in prison for illegally accessing his former employer’s network systems, stealing critical servers and information, and causing a loss valued at over $1.1 million. In a civil lawsuit against his girlfriend and…
Federal Courts May Consider Hearsay Evidence at Preliminary Injunction Hearings
Under Federal Rule of Evidence 802, hearsay evidence is generally not admissible in court. In preliminary injunction proceedings, however, the rules of evidence don’t necessarily apply. Here in the Fourth Circuit, courts relax evidentiary rules when faced with motions for preliminary injunctive relief, mostly due to practical considerations such as…
Spoliation of Evidence Can Result in Dismissal or Default
When specific and identifiable litigation becomes reasonably foreseeable, those likely to be involved in the litigation and with awareness of their likely involvement have a duty to preserve potentially relevant evidence. Failure of such a party to take reasonable steps to preserve the evidence–or intentional alteration, concealment, or destruction of…
Principal and Agent Are Not Separate Persons for Purposes of Tortious Interference Claim
To state a claim for tortious interference with a business expectancy (as opposed to a realized contract), a plaintiff must allege: (1) the existence of a valid business relationship or expectancy “with a probability of future economic benefit”; (2) knowledge of the relationship or expectancy; (3) reasonable certainty that, absent…
Source-of-Duty Rule May Apply to Bar Fraud Claim Inextricably Entwined with Contractual Duties
If you sue someone for fraud, you can win punitive damages in addition to regular compensatory damages. If you’re suing only for breach of contract, punitive damages are a no-go. As punitive damages can add up to $350,000 to the value of the plaintiff’s claim, plaintiffs naturally try to add…
Motions Craving Oyer in Virginia
One of the delightful aspects of practicing law in Virginia is that we still get to use antiquated legal terms that most states stopped using a century or so ago. Where a lawyer might file a motion to dismiss in some states, here we file a “demurrer” or a “plea…
Unjust Enrichment vs. Quantum Meruit
Express contracts are easy enough to understand. An express contract is a legally enforceable agreement formed by an exchange of promises, the terms of which are declared, either orally or in writing, at the time the agreement is formed. A mutual meeting of the minds is required, and the agreement…
No Tortious Interference Claim Unless Expectancy is Real
Virginia recognizes claims for both tortious interference with existing contracts and tortious interference with prospective, anticipated contracts, known as business expectancies. If your business is counting on winning a major contract but then the work suddenly goes to a competitor instead, it may be natural to wonder whether the competitor…
Non-Compete Agreements Between Businesses More Likely to Be Held Enforceable
Noncompete agreements are typically found in employment agreements between employers and their employees. But that’s not the only place these clauses are found. Sometimes you’ll have two sophisticated companies of roughly equal bargaining power who, for whatever reason, wish to enter into a binding agreement placing restrictions on the one…