Sometimes even a little knowledge can be helpful. For example, you may trust your CPA to handle your books, but you still understand how your company’s finances work. A human resources director may handle most personnel issues, but you still know the basics. Even though you will trust your business lawyer to understand the complexities of the legal system, you need to know a little about business torts. Primarily, you need to know this so you can avoid them if possible.
A Tort, Generally
By definition, a tort
“…is an act or omission that gives rise to injury or harm to another and amounts to a civil wrong for which courts impose liability. In the context of torts, ‘injury’ describes the invasion of any legal right, whereas ‘harm’ describes a loss or detriment in fact that an individual suffers.”
When someone injures or harms another person or entity, their action or inaction may be considered a tort. This type of case is handled in civil court, not criminal.
There are three basic categories of torts:
- Intentional,
- Negligent, and
- Strict liability.
However, the legal system recognizes several specific torts and separate areas of tort law.
Specific Business Torts and What They Mean to Your Company
Examples of business torts are also called economic torts, which includes:
- Fraud. A tort involving fraud may jeopardize both your business and reputation. For instance, statements that a corporation is profitable when it isn’t may be considered fraud if the statements were knowingly
- Negligent Misrepresentation. This type of tort hinges on someone’s negligent actions. One party may make a false statement to get another party to sign a contract. Although the statement was not a deliberate lie, the party should have known the statement was false before making it.
- Interference with Contractual Relations. Your company may have negotiated a contract with a great client. A competitor who knows about the contract may disrupt the business relationship between you and your client. Any economic damages your company suffers could be considered a business tort.
Learn More About Business Torts and How They Affect Your Business
If your company has suffered losses as a result of another person or company, you may have a tort claim. Discuss the facts of your case with a Florida business lawyer to learn more about your options.
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, our goal is to help you succeed. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. From our Coral Springs office, we represent clients throughout South Florida.