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Canada (162,165)
LAW 122 (625)
Chapter 5

Chapter 5 notes Miscellaneous Torts Affecting Business

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Department
Law and Business
Course
LAW 122
Professor
Ricardo Reyes
Semester
Winter

Description
LAW 122 Chapter 5 – Miscellaneous Torts Affecting Business Jan 5, 2014 CONSPIRACY • Two or more persons agree to act together with primary purpose of causing plaintiff to suffer financial loss • Plaintiff must prove: o If actions lawful, primary purpose was to hurt plaintiff o If actions unlawful, merely that defendants should have known their actions may hurt plaintiff INTIMIDATION • Tort of intimidation is concerned with unethical business practices • Occurs when the plaintiff suffers a loss as a result of the defendant’s threat to commit an unlawful act against either the plaintiff or a third party • Plaintiff must prove: o Threat to break duty in tort, contract, or crime o Intimidated party submitted to threat • Plaintiff don’t need to prove defendant intended to cause loss or damage Two-party Intimidation • Occurs when the defendant directly forces the plaintiff into suffering a loss o Manager at supermarket uses threats of physical violence to frighten the owner of convenience store into closing down Three-party Intimidation • Occurs when the defendant forces a third party into acting in a way that hurts the plaintiff Page 1 of5 LAW 122 Chapter 5 – Miscellaneous Torts Affecting Business Jan 5, 2014 Whether intimidation involves 2 or 3 parties, the basic rules apply: • Plaintiff must prove that the defendant threatened to commit an unlawful act (crime, tort, etc.) • Tort does not occur unless the threatened party gave in to the intimidation • As long as the other elements of tort are established, there is no need to prove that the defendant intended to hurt the plaintiff INTERFERENCE WITH CONTRACTUAL RELATIONS • Occurs when the defendant disrupts a contract that exists between the plaintiff and a third party Direct inducement to Breach of Contract – occurs when the defendant directly persuades a third party to break its contract with the plaintiff • Plaintiff must prove: o Defendant knew about contract between third party and plaintiff  Does not need to know details o Defendant intended to cause breach of contract  Does not have to intend to hurt the plaintiff  Tort committed even if defendant is motivated by a desire to benefit itself o Defendant actually caused breach of contract o Plaintiff suffered loss as a result of the defendant’s conduct Indirect Inducement to breach of Contract – occurs when the defendant indirectly persuades a third party to break its contract with the plaintiff (defendant may physically prevent third party from going to work, or steal worker’s tools) • Plaintiff must prove: o Same factors as direct inducement o Defendant’s actions were themselves unlawful  Defendant illegally detains the third party or steals that person’s tools UNLAWFUL INTERFERENCE WITH ECONOMIC RELATIONS • Occurs if the defendant commits an unlawful act for the purpose of causing the plaintiff to suffer an economic loss • Plaintiff must prove: o Intent to injure plaintiff o Unlawful or illegal act Page 2of 5 LAW 122 Chapter 5 – Miscellaneous Torts Affecting Business Jan 5, 2014 o Plaintiff suffered economic loss DECEIT • Tort of deceit encourages ethical behavior in the business world • Occurs if the defendant makes a false statement, which it knows to be untrue, with which it intends to mislead the plaintiff, and which causes the plaintiff to suffer a loss • Plaintiff must prove: o Defendant made false statement  Includes half-truths, failure to update information, and silence when defendant had duty to disclose o Defendant knew statement was false or was reckless in determining truth o Defendant intended to mislead plai
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