MGMT 246 / CH 6

Wrongful Interference with a Business Relationship

(An intentional business tort) Occurs when a person uses predatory tactics to take another business's customer. AKA unfair trade practice There is a difference between competitive practices and predatory behaviors. Is a business attempting to: 1. attract customers in general? Or 2. solicit only those customers who have already shown an interest in the similar product or service of a specific competitor? Required elements: 1. An established business relationship 2. Defendant used predatory methods to intentionally cause the relationship to end; 3. Damages

Wrongful interference with a contractual relationship

(An intentional business tort) Occurs when one person intentionally damages someone else's contractual or business relationships with a third party, causing economic harm Plaintiff must prove defendant: 1. knew of the contracts existence 2. intentionally induced the breach, NOT 3. that the defendant reaped the benefits of the broken contract Requirements: 1. Must have been a valid, enforceable contract 2. Defendant must know of contracts existence 3. defendant intentionally induced breach of contract between the parties

Types of damages available in tort actions: Compensatory Damages

1. Compensatory Damages - Compensate for actual losses A. Special Damages - Compensation for quantifiable monetary losses such as medical expenses, lost wages, extra costs, loss or irreplaceable items, or cost of replacing damaged property. B. General Damages - Compensate individuals (cannot be applied to businesses) for non-monetary harm such as pain and suffering, or loss of consortium (loss of intimate relationships, etc.)

Types of damages available in tort actions: Punitive Damages

2. Punitive Damages - Payment that a defendant is ordered to pay on top of compensatory damages as a form of punishment, when the money given to an injured party is deemed insufficient. Available in cases of: A. Intentional Torts B. Gross Negligence - An intentional failure to perform a duty in reckless disregard for the consequences, which puts an unreasonable risk of harm to another's life or property. Due Process Clause - bans punitive damages awards that are grossly excessive or imposed without adequate procedural protections, because it prohibits arbitrary deprivation of "life, liberty, or property" by the government. Eighth Amendment "Excessive bail shall not be required, nor excessive fines imposed, nor cruel and unusual punishments inflicted"

Contributory Negligence

A (common law) theory in tort law which a complaining party's own negligence contributed or cause his/her injuries. This completely bars the plaintiff from recovering damages if they are found to be partially at fault. In majority of jurisdictions, contributory negligence has been replaced by: -Comparative Negligence -Pure Comparative Negligence -50% Rule

Tort

A civil wrong not arising from a breach of contract. A breach of a legal duty that proximately causes harm or injury to another.

Actual Malice

A condition that exists when a person makes a statement with either knowledge of its falsity or a reckless disregard for the truth. In a defamation suit, a statement made about a public figure normally must be made with actual malice for liability to be incurred.

Assumption of the risk

A defense against negligence that can be used when the plaintiff was aware of a danger and voluntarily assumed the risk of injury from that danger.

Damages

A monetary award sought as a remedy for a breach of contract or a tortious action.

Pure Comparative Negligence

A plaintiff may still recover damages even if their percentage of fault is greater than that of the defendants. Example: the state allows the plaintiff to claim damages for the 1% they are not at fault even when they are 99% at fault

Puffery

A salesperson's exaggerated claims concerning the quality of goods offered for sale. Such claims involve opinions rather than facts and are not considered to be legally binding promises or warranties.

Good Samaritan Statute

A state statute that provides that persons who rescue or provide emergency services to others in peril—unless they do so recklessly, thus causing further harm—cannot be sued for negligence. Primarily in place to protect medical providers in emergency situations

Comparative Negligence

A theory in tort law under which the liability for injuries resulting from negligent acts is shared by all parties who were negligent (including the injured party), on the basis of each person's proportionate negligence. There are different types, but the principle in general reduces a plaintiff's recovery proportionally to the plaintiffs degree of fault in causing damage

Intentional tort

A wrongful act knowingly committed. An evil or harmful motive is not required, the law generally assumes individuals intend on the normal consequences of their actions.

Disparagement of Property

An economically injurious falsehood about another's product or property. May also be considered defamation. 1. Slander of quality - Trade libel, which is publication of false information about another person's product (product disparagement). May defame/disparage the character of a person that would sell such a product. Requires proof of economic damages 2. Slander of title - denies or casts doubt about legal ownership of property w/ intent to cause financial loss

Assault

An intentional and unexcused threat of immediate harmful/offensive contact An assault can occur even if there is no actual contact with plaintiff, provided that the defendant's conduct created reasonable apprehension of imminent harm to plaintiff. Apprehension differs from fear.

Trespass to Land

An intentional tort against property One who: 1. without permission, 2. enters land of another, OR 3. causes anything to enter (example: throwing rocks on land), OR 4. remains on the land (example: a liscensee or guest refusing to leave), OR 5. permits anything to remain Actual harm not required Common law stated that trespasser is liable for damages and could not hold owner liable, but that rule has been abandoned in favor of "reasonable duty" rule, which requires exercising reasonable care to prevent or warn others of danger (for example warning about the presence of a dog). An owner may be liable for injuries to children trespassing due to an attractive nuisance, like a pool.

superseding cause

An intervening force or event that breaks the connection between a wrongful act and an injury to another; in negligence law, a defense to liability.

Fraudulent Misrepresentation

Any misrepresentation, either by misstatement or by omission of a material fact, knowingly made with the intention of deceiving another and on which a reasonable person would and does rely to his or her detriment. Elements of fraud: 1. misrepresentation or failure to disclose fact 2. Intent - intent to induce reliance on the misrepresentation 3. justifiable reliance 4. damages 5. a causal connection between the misrepresentation and the injury suffered (causation)

Defenses to Defamation

Defenses to Defamation: 1. Truth 2. Privilege A. Absolute Privileged communication - Judicial (attorneys and judges) and some governmental (legislative debates) proceedings B. Qualified (or conditional) privileged communication - An employer's evaluation of an employee is privileged if made in good faith and limited to those who have a legitimate interest in the communication 3. Public Figure - False statements about public figures are NOT defamatory UNLESS, they are made with actual malice

Damages for Libel

General Damages are presumed; Plaintiff does not have to show actual injury. General damages include compensation for disgrace, dishonor, humiliation, injury to reputation and emotional distress.

Invasion of Privacy

Individuals have right to solitude and freedom from prying eyes. tort law safeguards our right to privacy. To succeed in invasion of privacy suit one must have: 1. A reasonable expectation of privacy; AND 2. The invasion must be highly offensive (to a reasonable person) Invasion of Privacy under the Common Law : 1. Intrusion on an Individual's Affairs or Seclusion -Searching someone's house or briefcase; Unauthorized wiretaps; unauthorized access of banking information; employer-required blood tests; Peeping Toms 2. Publication of Information that Places a Person in a False Light (May also be defamation) 3. Public disclosure of private facts that an ordinary person would find objectionable 4. (Mis)appropriation of identity. The Use of a Person's Name, Picture, Likeness or other identifiable characteristic for commercial purposes without permission

Intentional Infliction of Emotional Distress

Intentional infliction of emotional distress is a tort that allows individuals to recover for severe emotional distress caused by another individual who intentionally or recklessly inflicted emotional distress by behaving in an "extreme and outrageous" way. Repeated annoyance is not enough to constitute outrageous conduct, but when coupled with threats (i.e. stalking), it is. Limitations based on First Amendment: Typically, a court will not assign IIED tort liability to a defendant who speaks harmfully about public figures. and Parody's

Defenses to Wrongful Interference include:

Interference with justified or permissible. Bona fide (genuine) competitive behavior is a permissible interference even if it results in the breaking of a contract.

Unintentional Torts

Occurs when someone suffers injury because of another's failure to live up to a required duty of care (negligence). The tortfeasor neither wishes to bring about the consequences of an act nor believes they will occur. To succeed in a negligence action, plaintiff must prove: 1. Duty - the defendant owed a duty of care to plaintiff 2. Breach - duty was breached 3. Causation- defendants breach caused plaintiff's injury 4. Damages

Battery

Often the completion of the act that caused apprehension (assault) . But in general, it is unexcused and harmful or offensive intentional physical contact. Reasonable person standard determines whether contact was offensive. If contact was offensive, plaintiff may receive compensation for: 1. Emotion harm 2. Loss of reputation resulting from battery 3. Physical harm

Causation in a negligence action: 1. Causation in Fact 2. Proximate Cause

One of the elements necessary in a negligence action (which is an unintentional tort), is causation. If a person breaches a duty of care and someone suffers injury, the persons act must have caused the harm for it to constitute the tort of negligence. The court asks two questions to determine if causation is met: 1. "Is there causation of fact?" - Did the injury occur because of the defendants act, or would it have occurred any way? If there injury would NOT have occurred without the defendants act, then there is causation in fact. Causation of fact can be determined by the "but for" test, which says "but for" the wrongful act, the injury would not have occured. 2. Proximate cause - "Was the act the proximate, or legal, cause of the injury?" - The proximate, or legal cause, exists when the connection between the act and the injury is strong enough to justify imposing liability.

Liscensee

One who receives a license to use, or enter onto, another's property.

Malpractice

Professional misconduct or failure to exercise the requisite degree of skill as a professional. Negligence by a professional that failed to exercise due care such as a physician or attorney, is malpractice. (unintentional tort)

Defenses to Assault and Battery

Self-Defense (reasonable force). Defense of Others (reasonable force). Defense of Property (reasonable force).

Conversion

The civil side of theft. Depriving owner of property without 1. permission or 2. just (good) cause may also be trespass to personal property, the original taking may be trespass; retention is conversion Conversion may occur intentionally or by mistake. Anyone unknowingly in possession of stolen goods has committed the tort of conversion. Property must be returned or paid in full value. An employee's unauthorized use of a company credit card may be conversion

Duty of Care

The duty of all persons, as established by tort law, to exercise a reasonable amount of care in their dealings with others. Failure to exercise due care, which is normally determined by the "reasonable person standard", constitutes the tort of negligence.

Negligence

The failure to exercise the standard of care that a reasonable person would exercise in similar circumstances. (unintentional tort)

False Imprisonment

The intentional confinement or restraint of another person's activities without justification Includes: 1. Physical barriers 2. Physical restraint 3. Threats of physical force Shopkeeper may have defense if restraint is reasonable in manner and time, and they have sufficient evidence to believe person is guilty

Damages for Slander

The plaintiff must prove special damages (actual economic loss or monetary), unlike with libel. Reasons: A. Spoken statements aren't permanent B. Libel may include the element of deliberation Exceptions to the requirement of special damages - Slander per se: 1. A loathsome disease (STDs, mental illness) 2. Improprieties in a profession or trade 3. Another has committed or been imprisoned for a serious crime 4. A person (usually unmarried and sometimes only a woman) is unchaste or has engaged in serious sexual misconduct

Reasonable person standard

The standard of behavior expected of a hypothetical "reasonable person." The standard against which negligence is measured and that must be observed to avoid liability for negligence.

Defenses to Trespass to Land

The trespass is warranted (necessary) to assist some in danger. The trespasser is a licensee (such as a utility service person).

Dram Shop Acts

a tavern owner or bartender may be held liable for injuries caused by a person who became intoxicated while drinking at the bar or who was already intoxicated when served by the bartender Some states have applied this law to social hosts

Actionable

capable of serving as the basis of a lawsuit

Trespass to Personal Property (Chattels/Personalty)

intentional interference with another's use or enjoyment of personal property without consent or privilege; or harming their property (damage or destruction or anything else that diminishes the value, condition or quality of property). Defense: the trespass was warranted (like a mechanic's lien on property)

Defamation

intentional publication of a false statement harmful to an individual's reputation Requirements: 1. Must be a false statement of fact (not opinion) A. Slander - Spoken statement B. Libel - Statement with permanence such as a written or recorded statement 2. Statement must be understood to be about the plaintiff and harmed their reputation 3. Statement was made (published) to a third party 4. If plaintiff is public figure, statement must have been made with "actual malice"

tortfeasor

one who commits a tort

Business Invitees

people, such as customers or clients, who are invited onto business premises by the owner of those premises for business purposes

50% Rule (Comparative Negligence)

the plaintiff cannot collect any damages if the plaintiff is 50% or more at fault for the accident/their injury

Transferred intent

when a defendant intends to harm one individual, but unintentionally harms a second person. they may be liable for an intentional tort for harming the second individual under this legal principle.