Economic Torts

Question 1

Fraud/Misrepresentation Elements

Answer 1

(1) Misrepresentation: of material fact (no duty to disclose and opinion not actionable unless by a specialist). Silence is generally not enough.
(2) Scienter: D must have made the false statement intentionally or recklessly.
(3) Intent: D must intend to induce reliance by P.
(4) Causation: actual reliance
(5) Damages: actual pecuniary loss.

Question 2

Malicious Prosecution

Answer 2

D institutes either civil or criminal case against P without reasonable cause, the case is terminated in favor of P, and it was instituted w/o proper cause.

Question 3

Prima Facie Tort

Answer 3

intentionally inflicting economic harm without justification (NY c/a only)

Question 4

Inducing a Breach of Contract

Answer 4

(1) Existence of valid contract btwn P and another party
(2) Knowledge of the contract by D
(3) Persuasion of X by D to abandon the deal

Exception: where there is a special relationship between X and D, usually one of advisory.

Question 5

Theft of Trade Secret

Answer 5

(1) Valid trade secret (i.e. info that provides a business advantage to P, info that can’t be generally known, and P takes reasonable means to keep it a secret)
(2) Taking of that secret by improper means (i.e. traitorous insider, industrial spy, bribery of an employee)