Topic 5 - Intentional Torts & Business Torts Flashcards
What is considered to be criteria for the tort Inducing a Breach of Contract?
- A contract was breached.
- The defendant knew about the contract and deliberately induced its breach.
- The plaintiff, a party to the contract, suffered as a result.
What is an example of Inducing a Breach of Contract?
A corporation putting pressure on another corporation to breach its employment relationship with one of its employees.
OR
A director, causing the corporation to breach a contract it has with its creditor…(ie. Pocklington case)
What is a real life case example of Inducing a Breach of Contract?
Alberta Ltd. v. Pocklington
Peter Pocklington “induced” the breach by signing a director’s resolution transferring certain shares owned by Gainers (valued in the millions) to his own company, when actually the consent of Alberta was needed before doing this (as stated in their contract)
What is the business tort: INTERFERENCE WITH ECONOMIC RELATIONS?
Engaging in unlawful conduct (such as bribery, defamation or paying kickbacks) to discourage customers from dealing with one’s competitor
What is the business tort: INTIMIDATION?
Using a threat of violence or some other illegal activity to force a party to do something
What is the business tort: DECEIT (fraudulent misrepresentation)?
Intentional and fraudulent misleading of another, causing damage.
Statements were made:
(a) knowing them to be false; or
(b) without belief in their truth; or
(c) recklessly, not caring whether they were true or not.
What kind of damages are often awarded for deceit?
punitive damages
What are punitive damages?
damages exceeding simple compensation and awarded to punish the defendant
What is the business tort: CONSPIRACY TO INJURE?
Parties acting together and using unlawful means to injure the business interests of another
What is the business tort: MALICIOUS PROSECUTION?
- Plaintiff must establish that the defendant initiated prosecution out of malice
- There must be a lack of reasonable grounds supporting the prosecution
- Plaintiff was acquitted of the charges
What is the business tort: PASSING OFF?
Misleading others as to whose product or service is being offered. Passing off your product as if it were another’s
Misleading packaging could also be an example. ie. Packaging so similar to a successful brand that the public is led to believe the product belongs to or is associated with the successful brand
What happened in the case of Disney v. West Edmonton Mall
West Edmonton Mall had to change the name of its amusement park from “Fantasyland” to “Galaxyland”
What 4 things must the Plaintiff approve in order for their Passing Off claim to be successful?
- The plaintiff’s goods, services or business enjoy a reputation that is worth protecting.
- The defendant misrepresented its goods, services or business as being those of the plaintiff.
- The public was misled (actual confusion) or confusion is likely.
- The plaintiff suffered damage (loss of business, loss of reputation)
What is the business tort: BREACH OF CONFIDENTIALITY?
Involves the wrongful disclosure of confidential information such as trade secrets, customer lists and future plans.
~ The information must be of a confidential nature, it must have been given to someone in confidence and it must have been misused by the person to whom it was given.
What is the business tort: INJERIOUS FALSEHOOD (trade defamation)?
- Making statements that are untrue and unfounded about the goods or products of another
- The statements would cause consumers to regard these products or services less favorably.
- Damages are suffered by the plaintiff.
What tort is committed if one sells chocolate bars named “Kitt Katt” packaged in red foil wrappers?
Passing Off tort
Which of the following is not a tort?
a) inducing breach of contract
b) invasion of privacy
c) passing off
d) injurious falsehood
b) invasion of privacy
What is the definition of a Tort?
- Wrongful Act (a civil or social wrong) for which the courts direct compensation to be paid to the victim.
- Distinguishable from a crime (wrong that affects society as a whole) although there may be overlap.
- Punishment and deterrence are the aims of criminal law. Compensation to the victim is the aim of tort law.
What is the role of tort law?
to compensate victims for harm suffered at the hands of others
What are special damages?
damages awarded to cover expenses that have been incurred, or specific calculable pre-trial losses (“out of pocket” expenses with specific monetary value)
What are general damages?
incurred when it is not possible to place an actual value on the loss. (ie. pain and suffering, harm to reputation or future loss of earnings)– may also compensate for estimated future losses
What are punitive damages?
are awarded to punish the Tortfeasor, and are often rooted in social policy. Since punitive damages punish the wrongdoer, rather than compensate the victim, they are rarely awarded. However, the Court may award PUNITIVE damages with the objective of compensating the victim for intangible injuries such as distress or humiliation
What are the 3 trends that tort action requires?
- Fault
- Causation
- Compensable injury
What 2 interests must the courts balance?
Desire to compensate innocent victims vs. desire to avoid inhibiting beneficial conduct