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What are business torts and what can prompt actions?

What are business torts and what can prompt actions?

When a person suffers injury due to another’s negligence, the right to seek recovery of losses and compensation exists. Such disputes in Florida are often resolved with representatives from either side working through arbitration or negotiation. In some cases, litigation might be required.

Businesses can suffer damages, too. They aren’t usually physical in nature. More likely they will be economic, resulting from one side’s failure to meet contract obligations. The right to seek recovery and compensation still exists in these situations. However, it can be a difficult path to take.

The breadth of possible business disputes is so broad that it seems worthwhile for us to dig into some of them here. What follows is not comprehensive. Still, these are some of the most common business tort forms in the United States.

To start, let’s establish that a business tort amounts to an allegation of business loss due to another business’ unlawful actions. As noted above, that loss may be monetary. However, actions that damage your company’s reputation or drive you out of business can also trigger a suit.

Some examples

We suspect many have heard the term Tortious Interference. It happens when one party intentionally obstructs the fulfillment of contract terms between you and some other party.

Perhaps more commonly known is the theory of Restraint of Trade. Violating a valid non-compete agreement could trigger action under this heading. The action doesn’t have to result in immediate loss. If it prevents a company from conducting its business as usual, that could be enough.

Related to non-compete agreements might be Theft of Trade Secrets. Most businesses have proprietary information considered to afford them a competitive edge in the market. If it is clear that a competitor stole that information or received it by virtue of a non-compete violation, a tort claim could be brought.

A plaintiff might claim Fraudulent Misrepresentation if there is suspicion that the defendant entered into a contract without intending ever to fulfill the terms of the deal. Contracts depend on the good faith of all the parties involved.

Whether you have a viable case under any of these forms depends on the specifics of your case. Before launching into any such action, speak with a skilled attorney.

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