Tennessee recognizes both a common law and statutory cause of action for interfering with a contract. As indicated below, the common law and statutory causes of action are virtually identical with the exception of the types of damages that may be awarded pursuant to each, the different burdens of proof necessary to support a claim for each type of damages, and, possibly, the limitation period:
Cause of Action: |
Common Law Tortious Interference with Contract |
Statutory Tortious Interference with Contract -- Tenn. Code Ann. § 47-50-109 |
Elements: |
The existence of a legally enforceable contract |
Same |
Defendant’s knowledge of the contract |
Same | |
An intention to induce its breach |
Same | |
Malice |
Same | |
Breach of contract |
Same | |
Proximate causation |
Same | |
Compensatory and, possibly, punitive damages |
Treble damages | |
Burden of Proof: |
Preponderance of evidence for compensatory damages; Clear and convincing evidence for punitive damages |
Clear and convincing evidence for treble damages |
Statute of Limitations: |
Three-years under Tenn. Code Ann. § 28-3-105. |
Authorities are split on whether it is one-year under Tenn. Code Ann. § 28-3-104 or three-years under Tenn. Code Ann. § 28-3-105. |
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