Business Torts

Front 1

Intentional Misrepresentation (Fraud/Deceit)

Back 1

Affirmative misrepresentation of a material fact that defendant knew or believed was false with the intent to induce plaintiff to act or refrain from acting in reliance on the misrepresentation which caused the plaintiff damages as a result of justified reliance on the misrepresentation.

Front 2

Liability for Non-Disclosure

Back 2

As a general rule there is no duty to disclose a material fact or opinion unless there is a fiduciary relationship, active concealment, or misleading/incomplete statements, or new information comes to light.

Fiduciary relationships includes: 1) Executor - Beneficiary
2) Bank - depositor
3) Principal - agent
4) Family members or old friends.

Hint 2

If defendant does speak he must disclose enough information to prevent his words from being misleading.

Active concealment of an material fact is deceit.

A person who has made a statement and subsequently receives new information which makes it untrue or misleading must disclose the new information.

Front 3

Negligent Misrepresentation

Back 3

Misrepresentation by the defendant in a business or professional capacity which breaches a duty toward a particular plaintiff and causes damages as a result of the plaintiff's justifiable reliance upon the misrepresentation.

Typically found in commercial setting and where reliance is by plaintiff is contemplated i.e., foreseeable.

Front 4

Malicious Prosecution - PLACID

PL = Verdict in plaintiff's favor
A = Absence of cause of action
C = Criminal Proceedings
I = Improper purpose
D = Damages

Back 4

A private person who initiates the institution of criminal proceedings against another who is not guilty of the offense charged is subject to liability for malicious prosecution if he initiates or procures the proceedings without probable cause and primarily for a purpose of bringing the offender to justice and the proceeding have terminated in favor of the accused.

Front 5

Malicious Prosecution - Damages

Back 5

Plaintiff entitled to recover damages for the harm to her reputation and the emotional distress resulting from the proceedings.

Front 6

Wrongful use of Civil Proceedings

Back 6

One who takes an active part in the initiation, continuation, or procurement of civil proceedings against another is subject to liability to the other for wrongful proceedings if he acts without basis and primarily for a purpose other than that of securing the proper adjudication of the claim and the proceedings have terminated in favor of the person against whom they were brought.

Front 7

Abuse of Process

Back 7

On who uses a legal process, whether criminal or civil, against another primarily to accomplish a purpose for which it was not designed, is subject to liability to the other for the harm caused by the abuse of process.

Front 8

injurious Falsehood - Disparagement

Back 8

Disparagement is the publication of a derogatory statement relating to the plaintiff's title to his property, or its quality, or to his business that causes interference with his relationship with others to his disadvantage.

Plaintiff must show special damages (pecuniary loss) and may not recover for the personal elements of the damage, i.e. mental suffering.

Truth is a defense as falsity of disparagement is an element of this COA.

Consent as with any intentional tort.

Hint 8

Includes slander of title- statements that cast doubt about the validity or extent of the plaintiff's title and Trade libel, statements attacking the quality of the plaintiff's property, land, chattel such that they would deter another from dealing with her.

Sometimes referred to as disparagement.

Front 9

Interference with Contractual Relations

Back 9

Defendant intentionally interferes with an existing contract or prospective contract, which he knew of and the interference was wrongful.

Defendant may also be liable for contractual interference where he prevents performance of the contract or has made performance more difficult or onerous.

Damages where they are appropriate, on injunctive relief if not, or both.

Front 10

Interference with Prospective Advantage

Back 10

This tort protects the probable expectancy interests (future contractual interests) of a party such as 1) the prospect of obtaining employment, 2) the opportunity of obtaining customers.

Most common defense is competition.