Torts

Torts: non-criminal, non-contract-based claims 

• Common business-related torts: defamation, interference w contractual relations, products liability 

3 types of torts: 

• Intentional (on purpose) 

• Negligent (done carelessly) 

• Strict liability (engaged in conduct dangerous enough that you can be held liable when things go wrong) 

• Legal standards in tort law often use imagined substituted judgment of a "reasonable person" 

• Damages in tort can include: 

  • Actual losses caused by defendant's conduct 

  • Punitive damages 

  • If 2 defendants caused an indivisible harm, court can impose joint and several liability 

Intentional torts

• Tortious Interference with Contractual Relations 

REQUIRES: 

1. Plaintiff had contract with third party 

2. Defendant knew about that contract 

3. Defendant intentionally and improperly acted in such a way as to cause breach of contract 

4. Harm to plaintiff as a result of defendant's conduct 

I.e. in a noncompete agreement, new employer induces a breach of contract with the employee 

• Old employer + employee = breach of contract relationship 

• Old employer + new employer = tortious interference 

• Harm to plaintiff (old employer) can include loss of clients, etc. 

• Fraud (I.e. intentional misrepresentation, or lying on purpose) 

REQUIRES 

1. Defendant made false representation of a material fact 

2. Knowing it was false 

3. Intending for plaintiff to rely on it 

4. Plaintiff reasonably relied on statement 

5. Causing harm to plaintiff 

• Defamation 

REQUIRES 

1. Defendant made oral (slander) or written (libel) factual, false statement 

2. About plaintiff 

3. Published statement to others 

4. Published statement caused plaintiff harm 

• Where plaintiff is a celebrity, there is additional element required: malice 

• Opinions are generally considered non-factual statements and therefore usually NOT actionable 

• Truth of the statement is an absolute privilege to defamation 

  • Media have a qualified privilege if a story turns out to be false and they correct the record 

New York Times v. Sullivan, 376 U.S. 254 (1964) 

Negligence 

REQUIRES: 

1. Defendant owed plaintiff duty 

   1. Duty of reasonable care is imposed generally in society 

2. Defendant breached that duty 

   1. Defendant's conduct is measured against what a reasonable person would have done 

3. Plaintiff is harmed 

4. Defendant's conduct was cause-in-fact of plaintiff's harm 

   1. Apply the "but-for" test 

5. Defendant's conduct is proximate cause of plaintiff's harm 

   1. Harm suffered by plaintiff must be a foreseeable consequence of defendant's conduct 

Palsgraf v. Long Island R. R. Co., 162 N.E. 99 (N.Y. 1928) 

Defenses to negligence actions: 

• Comparative negligence: modern approach where fault is apportioned between plaintiff and defendant 

• Assumption of risk: plaintiff consented to dangers involved in certain activities 

• Negligent Misrepresentation (I.e. lying out of carelessness) 

REQUIRES: 

1. Defendant made false representation of a material fact 

2. With no grounds to believe statement was true 

3. Intended for plaintiff to rely on statement 

4. Plaintiff reasonably relied on statement 

5. Caused plaintiff harm 

Strict liability 

• Products Liability 

REQUIRES: 

1. Product has a defect 

2. Defect causes product to perform in a manner tha tinjures the user 

• Do not have to prove fault 

  • Idea is that it's often too difficult to prove fault in these situations 

• Do not have to be purchase of product 

Greenman v. Yuba Power Products, 59 Cal. 2d 57 (1963) 

• Failure to warn and design defect theories are extensions of the doctrine developed in Greenman