Business Torts
LexInter | February 11, 2023 | 0 Comments

Everything You Need To Know About Business Torts

Businesses in various industries deal with numerous challenges regardless of size. An example is wrong acts committed by other persons or entities to a company, causing reputational damage, loss of competitive business advantage, or financial losses. These acts are called business torts. Fortunately, businesses victimized by these wrongful acts may have a course of action against the offending party or parties under the torts laws applicable in their states.

If you haven’t heard about business torts, keep reading this article to learn more about them and why they should matter to your business.

What Are Business Torts?

What Are Business Torts

As defined, business torts, also known as economic torts, refer to wrongful acts or damages done to a business. They can be committed intentionally or through the negligence of specific individuals or competing companies. Furthermore, business torts can be resolved through arbitration or mediation, or civil litigation in court if the alternative dispute resolution methods mentioned prove unsuccessful.

What Are Examples Of Business Torts?

To better understand the concept of business torts, getting familiar with the different types of wrongful actions committed against a business is essential. Some common examples you should know include:

  • Tortious Interference: It happens when another party deliberately and unlawfully meddles with the contractual dealings of a business. For example, when a third party interferes with your business negotiations or prospective business opportunities, causing harm to your business relationships.
  • Fraud: It occurs when a party presents a particular fact that they know is false in the first place, but by relying on it, your business incurs significant losses and injuries.
  • Restraint Of Trade: It’s a business tort whereby other businesses and individuals enter into agreements or take some actions that prevent a company from operating normally.
  • Disparagement: It’s a business tort wherein a party intentionally defames a business’s reputation, such as making false statements about the products or services, causing harm to a business.
  • Theft Of Trade Secrets: It happens when individuals or businesses unlawfully access proprietary business information to get an unfair and improper competitive advantage over another business.

There are indeed many ways wherein businesses and individuals can cause harm to a business. Hence, if your business has been a victim of any of the business torts mentioned above, it’s best to work with an experienced lawyer from a professional business law firm in your area. They can assess the details of your case and determine the best legal courses of action to protect your business’s rights and interests.

What Are The Legal Remedies Available For Business Torts?

Restatement (Second) Of Torts

If another party’s wrongful actions have harmed your business, you may have legal remedies under the business torts law. These include:

1. File An Action For Damages Against The Defendant

This is the most common legal remedy for business torts. When you file an action for damages based on business torts, you seek compensation for the injuries and losses your business has sustained due to another party’s wrongful acts. The payment can help ease the adverse effects of the business torts on your business.

The damages you may recover from the adverse party include general and special damages. General damages refer to non-monetary losses, such as reputational damage, that your business incurred. Meanwhile, special damages are monetary losses intended to compensate you for your company’s financial losses because of the tort.

However, before you can get compensated for the injuries and losses caused by a business tort, you may need to prove the following elements in the said case:

  • The defendant was responsible for acting in a specific manner that was not injurious to the plaintiff.
  • The defendant failed to uphold that responsibility by committing various types of misconduct.
  • The defendant’s wrongful actions had caused the plaintiff significant losses, including reputational damage and unrealized profits.

By successfully proving these elements, you can have a better chance of receiving the compensation your business deserves through civil action for damages.

2. File A Petition For Injunction Against The Defendant

Examples Of Business Torts

Another remedy for business torts is filing a petition for injunction against the defendant. It may be issued by the court to inhibit the defendant from causing continuing harm to the plaintiff. However, in filing a petition for injunction, it’s best to work with a lawyer specializing in business law cases to ensure a more favorable result. They can help you draft the contents of the petition and prepare the necessary documents to improve your odds of securing an injunction order against the adverse party.


Dealing with a business tort can be challenging for any business owner. It can adversely damage your business and reputation if not addressed accordingly. Therefore, if you think your business has been a victim of a business tort, keep the information mentioned above in mind to learn and understand the fundamentals of business torts. This way, you’ll know what to do to protect your business’s rights and interests against other individuals’ and businesses’ willful or negligent acts.

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