Business Torts

Business torts are civil wrongs that cause damages to a business’ economic interests. Common business torts include civil fraud, conspiracy, inducing breach of contract, and intimidation.

Civil Fraud

The tort of civil fraud consists of four elements:

  1. A false representation made by the defendant;
  2. Some level of knowledge of the falsehood of the representation on the part of the defendant;
  3. The false representation caused the plaintiff to act;
  4. The plaintiff’s actions resulted in a loss.

Conspiracy

Parties can be found liable for the tort of conspiracy when they work together in an effort to harm another business. There are two types of conspiracy.

First, there is predominant purpose conspiracy, also known as conspiracy to injure. To prove this tort a plaintiff must demonstrate:

  1. An agreement between two or more parties;
  2. That the parties used either lawful or unlawful means with the predominant objective of injuring the plaintiff; and
  3. That the parties caused actual damage to the plaintiff.

Second, there is unlawful conduct conspiracy. To prove this tort a plaintiff must demonstrate:

  1. Two or more parties acted together by agreement or a common design or intention;
  2. The co-conspirators engaged in conduct that was unlawful, such as misrepresentation or fraud;
  3. The conduct was directed towards the plaintiff;
  4. The parties should have known their actions would cause injury to the plaintiff; and
  5. Injury or harm to the plaintiff was caused by the defendants’ actions.

Inducing breach of contract

The tort of inducing breach of contract occurs when a party causes another party to breach a contract with your business. To prove this tort, the plaintiff must demonstrate:

  1. The existence of an enforceable contract;
  2. Knowledge on the part of the defendant of the existence of the plaintiff’s contract;
  3. An intention on the part of the defendant to cause a breach of that contract;
  4. Wrongful interference on the part of the defendant; and
  5. Resulting damage.

Intimidation

The tort of intimidation can occur in two scenarios, two-party intimidation or three-party intimidation.

To prove two-party intimidation, the plaintiff must demonstrate:

  1. Party A must deliver an unlawful threat to Party B;
  2. Intent to cause harm to Party B;
  3. Party A’s threat must cause Party B’s subsequent conduct; and
  4. Result in harm to Party B.

To prove three-party intimidation, the plaintiff must demonstrate:

Three-Party Intimidation 

  1. Party A must deliver an unlawful threat to Party B;
  2. Intent to cause harm to Party C;
  3. Party A’s threat must cause Party B’s subsequent conduct; and
  4. Result in harm to Party C.

Hum Law Firm has experience dealing with Business Torts.

We are here to assist you protect your business. Contact Hum Law for guidance.