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What are business torts?

On Behalf of | Jun 30, 2016 | Business Torts |

When a Miami resident suffers harm as a result of the negligent or reckless conduct of another person, the injured party usually has the right to sue the responsible entity for his or her injury-related losses. Lawsuits based on injuries and losses are generally called torts, and torts can affect businesses as well as individuals.

A business tort occurs when a person or entity causes a business to experience financial loss or hardship. There are a number of ways that a business tort can occur, and this blog post will examine only a few of the many types of torts that exist in the business world. Readers of this Florida business law blog who wish to explore the topic of business torts further may choose to do so with the help of their own business law counselors.

First, a business tort can be based on a party’s interference with contractual relations. For example, if a business agrees to purchase goods or services from a vender and a third party intercedes to attempt to break that contractual relationship then the third party may be liable for a business tort based on its interfering actions if the business loses money as a result of the broken deal.

Second, a business tort can result from misrepresentations between business partners or associates. Entities that negligently, recklessly or intentionally conceal facts from the businesses they work with can be liable for business torts if those misrepresentations or hidden facts result in losses for the involved businesses.

Finally, a party may be alleged to have committed a business tort if he perpetrates fraud against a business and that business suffers financial losses as a result. Business torts can rise to the level of crimes in some circumstances, but criminal charges against a party generally do not prevent a business from pursuing its own civil business tort claims against individuals and entities that imposes financial losses on them.