20) Economic Torts + Misc Concepts

Question 1

economic torts: kinds

Answer 1

1) intentional misrep / fraud
2) neg misrep
3) interference w contractual relations
4) interference w prospective economic advantage
5) injurious falsehood

Question 2

intentional misrep, aka

Answer 2

fraud

Question 3

intentional misrep: elements

Answer 3

1) intentional misrep by D
2) of past or present fact
3) made w scienter
4) on which P justifiably relies, to his economic detriment

Question 4

intentional misrep: intentional misrep element: def

Answer 4

1) affirmative assertion of fact
2) affirmative act of concealment
3) failure to disclose ONLY IF certain circs

Question 5

intentional misrep: intentional misrep element: when does failure to disclose count?

Answer 5

failure to disclose is NOT a basis unless: (1 of these)

1) fiduciary rship
2) ambiguous or misleading st that causes reliance
3) D makes assertion believing it to be true but later discovers it was false or circs have changed
4) D makes false assertion not intending anyone rely on it but subsequently discovers that P intends to act in reliance on the false assertion

Question 6

scienter: def

Answer 6

scienter = D makes misrepresentation knowing it’s false OR reckless as to truth or falsity

D must also have mental state of intending that P (or class where P is a member) will rely on the rep

Question 7

negligent misrep: general rule

Answer 7

D has no duty to avoid the negligent infliction of PURE economic loss

Question 8

negligent misrep: contrast

Answer 8

if the economic loss accompanies PI or property damages, it’s still recoverable (even tho purely economic–loss of sales where fire licked your building vs it had to be evacuated but did not)

Question 9

negligent misrep: exception

Answer 9

YES liable for negligent infliction of pure economic loss if SPECIAL RELATIONSHIP (ex. legal malpractice)

Question 10

negligent misrep: exception: who can recover?

Answer 10

if D knows they are acting for the benefit of a 3rd party and that aim is to benefit 3rd party, and 3rd party relies + suffers economic loss, they can recover

Question 11

negligent misrep: exception: who can recover?: lawyers

Answer 11

nonparties can only recover in the context of will drafting (intended beneficiary)

Question 12

interference w contractual relations: elements

Answer 12

1) D knows that there is a k btwn + and 3rd party

2) D acts w purpose of having k breached or made more difficult to perform

Question 13

interference w prospective economic advantage: purpose

Answer 13

protect “expectancy” interests of future contractual relations of a party

Question 14

interference w prospective economic advantage: elements

Answer 14

1) D knew of prospective economic advantage

2) D acted to interfere w the prospective economic advantage, for an improper purpose

Question 15

injurious falsehood: elements

Answer 15

1) false st
2) actual malice [D knew st false or reckless re falsity]
3) made to another or published
4) causing specific economic injury to P

Question 16

injurious falsehood: remedies

Answer 16

economic damages + punis

Question 17

respondeat superior: def

Answer 17

ER is liable for injuries caused by negligence or strict liability if the tortious conduct is w/in the scope of employment

Question 18

respondeat superior: indemnity

Answer 18

ER can seek from EE, but rarely does

Question 19

respondeat superior: exception

Answer 19

intentional torts committed by ee (even if during working hours–tort is considered outside scope of employment)

Question 20

respondeat superior: E2E

Answer 20

if ee uses force, even misguidedly, wholly or partly to further an employer’s purpose, then YES w/in scope of employment and respondeat superior applies (bounder)

Question 21

respondeat superior: exception re status

Answer 21

independent contracter no! bc D has no right to control the activity of contracter

Question 22

respondeat superior: direct er liability for

Answer 22

negligent hiring

Question 23

independent contracter vs employee: def

Answer 23

depends on who dictates:
1) means
2) method
3) manner
the more control exercised by the hirer, more likely person is an ee

Question 24

parent liability for child

Answer 24

normally NOT vicariously liable

Question 25

parent liability: exception

Answer 25

(few courts) give vicarious liability as “principal-agent” where child was running errand for parent

Question 26

result when P or D dies: CL

Answer 26

death of either V or tortfeasor ABATES the tort action btwn them

Question 27

survival statute

Answer 27

death of V or tortfeasor now no longer abates the action – claim can be brought by estate of deceased

Question 28

wrongful death: rule

Answer 28

heirs of deceased v may bring an action against the tortfeasor responsible for V’s death

Question 29

loss of consortium: def

Answer 29

where spouse is injured, surviving spouse may bring claim for loss of consortium

intangible injuries for loss of comfort, companionship, sexual relations