Economic Torts

Question 1

What is the intentional tort of fraud/misrepresentation/deceit?

Answer 1

• An economic loss tort
• P has to prove:
  
  1. intentional material misrepresentation
  2. of past or present fact
  3. made with scienter
  4. on which P justifiably relies

Question 2

When is failure to disclose a basis for a fraud claim?

Answer 2

• Generally not obligation to disclose information EXCEPT
  
  • When there is a fiduciary relationship
  • when there is ambiguous or misleading language causing reliance
  • Δ makes a statement believing it to be true but learns it is not
  • Δ makes a statement not intending reliance but learns P relies
  • if P reasonably expects disclosure
• Mental state
  
  • Δ must intend for P to rely
  • have scienter - Δ knows the information is false or is reckless as to truth or falsity

Question 3

What is negligent misreprezsentation?

Answer 3

• Generally - the Δ has no duty to avoid the negligent infliction of pure economic loss

Question 4

Who beyond a pty who is in privity of K should be permitted to recover? (negligent misrepresentation)

Answer 4

• others outside can recover if the Δ knows they are acting for the benefit of the 3d pty and it is to benefit the 3rd pty
• 3rd pty rely and suffer economic loss
• they will be entitlted to recover

Question 5

Is economic loss awarded in the lawyer-client relationship for negligent misrepresentation?

Answer 5

• Only allow non-clients to recover economic loss in the context of will drafting
• where the lawyer drafts the will so negligently

Question 6

What is intentional interference wth contract?

Answer 6

Two elements:

1. Δ knows there is a K between P & a 3rd pty
2. Δ acts with the purpose of having the K breached or harder to perform

Question 7

What is intentonal interference with prospective economic advantage?

Answer 7

• there is no K here law is less protective
• For P to prevail, P must show:
  
  • Δ know of the prospective economic advantage
  • Δ acted to interfere with it for improper motive

Question 8

What is injurous falsehood/trade disparagement (business defamation)?

Answer 8

• P must prove
  
  1. a false statement
  2. actual malice - Δ knew statement was flase or recklessly disregarded truth or falsity
  3. made to another or published
  4. causing specific economic injury to P