Torts

Lesson 40: Defenses to Economic Torts

Welcome to Lesson 40 of our instructable on Economic Torts. In this lesson, we will explore the various defenses available to economic torts.

Introduction to Economic Torts

Economic torts are wrongful acts committed against a person or entity's business or economic interests. Common economic torts include interference with contractual relations, interference with prospective economic advantage, fraud and misrepresentation, and trade libel.

Key Defenses to Economic Torts

The following defenses are commonly used against economic tort claims:

Justification: The defendant may argue that their actions were justified under the circumstances.
Privilege: Certain privileges, such as legal privilege, may protect the defendant from liability.
Competition: Engaging in fair competition may be a valid defense if the actions were not intended to cause harm.
Consent: If the plaintiff consented to the defendant's actions, this may be a valid defense.

Diagram: Justification Defense

graph TD A["Plaintiff"] -->|Claims| B["Defendant"] B -->|Defends with| C["Justification"]

Justification

Justification is a defense where the defendant argues that their actions were necessary or appropriate under the circumstances. For example, in instances involving interference with contractual relations, the defendant may claim that the interference was necessary to protect their own rights or interests.

Diagram: Privilege Defense

graph TD A["Plaintiff"] -->|Claims| B["Defendant"] B -->|Defends with| D["Privilege"]

Privilege

Privilege is a defense where the defendant claims a special right or immunity, such as legal privilege, which exempts them from liability. Privileged actions may include those performed under legal authority, such as actions by attorneys, judges, or other officials.

Diagram: Fair Competition Defense

graph TD A["Plaintiff"] -->|Claims| B["Defendant"] B -->|Defends with| E["Fair Competition"]

Fair Competition

Fair competition is a defense used when the defendant's actions are part of legitimate business competition. If the defendant can demonstrate that their actions were intended to compete fairly in the market and not to harm the plaintiff, this may serve as a valid defense.

Diagram: Consent Defense

graph TD A["Plaintiff"] -->|Claims| B["Defendant"] B -->|Defends with| F["Consent"]

Consent

Consent is a defense where the defendant argues that the plaintiff agreed to the actions that are now the subject of the claim. Evidence of consent can significantly reduce or eliminate liability for the defendant.

Note: Understanding these defenses is crucial for navigating complex economic tort cases. Make sure to review related lessons on defenses to intentional torts and defenses to negligence as well.

By effectively using these defenses, defendants can mitigate or even nullify potential liability. For further reading, check out more related topics such as contributory negligence and assumption of risk. Additionally, you can explore some insightful books on Amazon like 'Torts Law: Cases and Materials' to deepen your understanding.