Business and Its Legal Environment: Torts

Business and Its Legal Environment: Torts (Chapters 6 and 7)

Introduction to Torts

• Definition of a Tort:

  • A “tort” is described as a wrong that is not based on a contract.

  • Most tort lawsuits stem from tort causes of action alone.

  • Example: A negligence cause of action arises from a car accident.

  • Some lawsuits may combine both contract and tort causes of action:

  • Example: A lawsuit could involve breach of contract due to the defendant failing to perform under a contract and fraud if the defendant misled the plaintiff when making the agreement.

• Types of Torts:

  • Intentional Torts

  • Negligence

  • Strict Liability

Types of Torts

• Intentional Torts:

  • Result from acts that a defendant consciously performs with intent.

  • Importance of intent:

  • The defendant must intend to perform the act, but does not necessarily intend to cause harm (e.g., firing a gun into the air).

  • Proof of intent to cause harm strengthens the case for an intentional tort (Example: Defendant threatens harm before committing an act).

• Negligence:

  • Represents the leading theory in tort law.

  • No intent is required; focus is instead on whether the defendant's actions or omissions create a risk of harm due to carelessness, mistakes, or misjudgments.

  • Commonly described as “just an accident.”

  • The party whose negligence resulted in the injury should bear the costs.

• Strict Liability:

  • Implies liability without fault.

  • Traditionally associated with:

  • Harm from ultrahazardous activities.

  • Risks associated with consuming certain medicines, foods, or beverages.

  • Extensions of strict liability apply to injuries caused by mass-produced goods, recognized mainly from the mid-20th century onward.

Causation

• Causation is essential for any tort claim.

  • Defined as the connection between the defendant's illicit action and the damages suffered by the plaintiff.

  • Requires establishing a reasonable relationship between the defendant's actions and the damages to the plaintiff;

  • The concept of foreseeability often guides this assessment.

  • Examples illustrating causation:

  • Incident involving a truck driver at a loading dock.

  • Events surrounding the January 6th Capitol riot.

Damages

• Damages are a prerequisite for any tort claim.

  • Tort law aims to provide compensation to the plaintiff for injuries or losses that can be quantified in monetary terms.

  • Absence of damages results in no compensation, favoring the defendant.

  • Various forms of evidence to prove damages:

  • Medical bills, lost income, pain and suffering, emotional distress, property repair costs (e.g., car accidents).

  • Damages to reputation due to business torts such as fraud, defamation, or wrongful interference.

  • Conclusion: If substantial damages are proven, the plaintiff is entitled to monetary compensation, provided the link between the defendant's actions and the damages is demonstrated.

Intentional Torts

• Intentional Infliction of Emotional Distress:

  • Requires defendant to engage in conduct deemed "outrageous"; exceeds societal norms of decency (e.g., mishandling human remains, sharing 'revenge porn').

• Defamation:

  • Defined as the communication of a false statement of fact to a third party that results in damage to the plaintiff.

  • Damages can be financial (e.g., loss of income) or personal (e.g., emotional distress).

  • Types of defamation:

  • Slander: Spoken, oral statements.

  • Libel: Written statements or those communicated online.

Intentional Torts Continued

• Wrongful Interference:

  • Involves wrongful acts that disrupt the relationship between the plaintiff and a third party, particularly relating to contractual or business arrangements.

• Conversion:

  • Occurs when a plaintiff entrusts property to a defendant under a specific purpose, and the defendant uses it for unauthorized purposes (e.g., using a company car for personal errands).

Intentional Torts Continued

• Privacy Torts:

  • Focused on the reasonable expectation of privacy:

  • Unauthorized use of a person’s name, image, or likeness for commercial gain.

  • Intrusion into someone's private life - forms part of invasion of privacy claims.

  • Public disclosures of private facts, including those under