Knowledge

Tortious interference

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1060:
of accessory liability, and an intention to cause a breach of contract was a necessary and sufficient requirement for liability; a person had to know that he was inducing a breach of contract and to intend to do so; that a conscious decision not to inquire into the existence of a fact could be treated as knowledge for the purposes of the tort; that a person who knowingly induced a breach of contract as a means to an end had the necessary intent even if he was not motivated by malice but had acted with the motive of securing an economic advantage for himself; that, however, a breach of contract which was neither an end in itself nor a means to an end but was merely a foreseeable consequence of a person's acts did not give rise to liability; and that there could be no secondary liability without primary liability, and therefore a person could not be liable for inducing a breach of contract unless there had in fact been a breach by the contracting party.
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interference is somehow wrongful—i.e., based on facts that take the defendant's actions out of the realm of legitimate business transactions." "he competition privilege is defeated only where the defendant engages in unlawful or illegitimate means." "Wrongful" in this context means "independently wrongful"—that is, "blameworthy" or "independently wrongful apart from the interference itself". This may be termed use of improper means. "Commonly included among improper means are actions which are independently actionable, violations of federal or state law or unethical business practices, e.g., violence, misrepresentation, unfounded litigation, defamation, trade libel or trade mark infringement." Other examples of wrongful conduct are "fraud, misrepresentation, intimidation, coercion, obstruction or molestation of the rival or his servants or workmen".
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third party and which was intended to cause loss to the claimant, but did not include acts which might be unlawful against a third party but which did not affect his freedom to deal with the claimant. Strict liability for conversion applied only to an interest in chattels and not to chooses in action; this was too radical to impose liability for pure economic loss on receivers who had been appointed and had acted in good faith. This also left open the position where they breached the duty of good faith.
25: 854: 1333:, 155 Cal. App. 4th 1072, 1079—1080, 66 Cal. Rptr. 3d 432 (2007) ("e have been directed to no California authority, and have found none, for the trial court’s conclusion that the wrongful conduct must be intentional or willful. The defendant’s conduct must 'fall outside the boundaries of fair competition' ... but negligent misconduct or the violation of a statutory obligation suffice.") (internal citations omitted). 1047:". In that case, the defendant had used a shotgun to drive ducks away from a pond that the plaintiff had built for the purpose of capturing ducks. Thus, unlike the foregoing cases, here the actionable conduct was not directly driving the prospective customers away, but rather eliminating the subject matter of the prospective business. Although the ducks had not yet been captured, the 1030:. This action caused the natives (plaintiff's prospective customers) to flee the scene, depriving the plaintiff of their potential business. The King's Bench held the conduct actionable. The defendant claimed, by way of justification, that the local native ruler had given it an exclusive franchise to trade with his subjects, but the court rejected this defense. 1059:
1 AC 1, wrongful interference, the unified theory which treated causing loss by unlawful means as an extension of the tort of inducing a breach of contract, was abandoned; inducing breach of contract and causing loss by unlawful means were two separate torts. Inducing a breach of contract was a tort
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The above situations are actionable only if someone with actual knowledge of, and intent to interfere with, an existing contract or expectancy between other parties, acts improperly with malicious intent and actually interferes with the contract/expectancy, causing economic harm. Historically, there
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interference with prospective economic advantage imposes liability for improper methods of disrupting or diverting the business relationship of another which fall outside the boundaries of fair competition") (emphasis supplied) (internal citation omitted). There used to be California authority that
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Tortious interference with an expected inheritance - One who, by fraud, duress or other tortious means intentionally prevents another from receiving from a third person an inheritance or gift that he would otherwise have received, is subject to liability to the other for loss of the inheritance or
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Tortious interference with business relationships occurs where the tortfeasor intentionally acts to prevent someone from successfully establishing or maintaining business relationships with others. This tort may occur when one party knowingly takes an action that causes a second party not to enter
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wrote for the court that "where a violent or malicious act is done to a man's occupation, profession, or way of getting a livelihood, there an action lies in all cases." The court noted that the defendant would have the right to draw away ducks to a pond of his own, raising as a comparison a 1410
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Acts against a third party counted as unlawful means only if they were actionable by that third party if he had suffered loss; that unlawful means consisted of acts intended to cause loss to the claimant by interfering with the freedom of a third party in a way which was unlawful as against that
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California and most jurisdictions hold that there is a privilege to compete for business. "Under the privilege of free competition, a competitor is free to divert business to himself as long as he uses fair and reasonable means. Thus, the plaintiff must present facts indicating the defendant's
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Equitable remedies may include injunctive relief in the form of a negative injunction that would be used to prevent the wrongdoer from benefiting from any contractual relationship that may arise out of the interference, i.e., the performance of a singer who was originally contracted with the
1402:, 784 P.2d 433, 436 (Or. 1989) ("Negligent injury to one person that harms another's contract or other economic relationship is not a tort, at least not unless some duty of defendant outside negligence law itself protects the injured interest of the plaintiff against negligent invasion"). 1134:
the defendant knew of the existence of the relationship and was aware or should have been aware that if it did not act with due care its actions would interfere with this relationship and cause plaintiff to lose in whole or in part the probable future economic benefit or advantage of the
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with a third party (e.g., using blackmail, threats, influence, etc.) or where someone knowingly interferes with a contractor's ability to perform his contractual obligations, preventing the client from receiving the services or goods promised (e.g., by refusing to deliver goods). The
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to induce a contractor into breaking a contract; they could threaten a supplier to prevent them from supplying goods or services to another party; or they could obstruct someone's ability to honor a contract with a client by deliberately refusing to deliver necessary goods.
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into a business relationship with a third party that otherwise would probably have occurred. An example is when a tortfeasor offers to sell a property to someone below market value knowing they were in the final stages of a sale with a third party pending the upcoming
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is the person who interferes with the contractual relationship between others. When a tortfeasor is aware of an existing contract and deliberately induces a breach by one of the contract holders, it is termed "tortious inducement of breach of contract".
1383:. Nevertheless, however illogical it may seem, it is arguable that California does not recognize a tort of negligent interference with contractual relations, but does recognize a tort of negligent interference with prospective economic advantage. See 936:
damages the contractual or business relationship between others, causing economic harm, such as by blocking a waterway or causing a blackout that prevents the utility company from being able to uphold its existing contracts with consumers.
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Typical legal damages for tortious interference include economic losses, if they can be proven with certainty, and mental distress. Additionally punitive damages may be awarded if malice on the part of the wrongdoer can be established.
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said that "the defendant threatened violence to the extent of committing an assault upon ... customers of the plaintiff ... whereupon 'they all desisted from buying'." The court therefore upheld a judgment for the plaintiff.
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such negligence caused damage to plaintiff in that the relationship was actually interfered with or disrupted and plaintiff lost in whole or in part the economic benefits or advantage reasonably expected from the
1354:, 24 Cal. 3d 799, 804, 157 Cal. Rptr. 407, 598 P.2d 60 (1979) ("Where a special relationship exists between the parties, a plaintiff may recover for loss of expected economic advantage through the 1008:, 79 Eng. Rep. 485 (K.B. 1620). In that case, the defendant drove customers away from the plaintiff's quarry by threatening them with mayhem and also threatening to "vex with suits". The 1073:
Tortious interference of business – When false claims and accusations are made against a business or an individual's reputation in order to drive business away.
1026:, off the coast of Africa upon natives while "contriving and maliciously intending to hinder and deter the natives from trading with" plaintiff's rival trading ship, 1090: 1131:
an economic relationship existed between the plaintiff and a third party which contained a reasonably probable future economic benefit or advantage to plaintiff;
1592: (Mo.Ct.App. 2004). (Believed to be the first claim for tortious interference with inheritance expectancy to withstand appeal in the State of Missouri). 1101:
Although the specific elements required to prove a claim of tortious interference vary from one jurisdiction to another, they typically include the following:
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damages the contractual or business relationship between others, causing economic harm, such as by blocking a waterway or causing a blackout preventing the
1350:, 388 F.2d 821 (2d Cir. 1968) (dictum: stating that negligent interference with contract should receive same legal treatment as other negligent acts); 1124:
The first element may, in employment-at-will jurisdictions, be held fulfilled in regards to a previously unterminated employer/employee relationship.
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case in which the court deemed that no cause of action would lie where a schoolmaster opened a new school that drew students away from an old school.
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commits tortious interference with the employees' contracts of employment, unless the action is conducted in accordance with Part V of the
137: 1346:, 501 F.2d 558 (9th Cir. 1974) (holding negligent interference with prospective advantage actionable when risk of harm was foreseeable); 1127:
In California, these are the elements of negligent interference with prospective economic advantage, which the plaintiff must establish:
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Tortious interference of contract – When an individual uses "tort" (a wrongful act) to come between two parties' mutual contract.
277: 986:. However, some jurisdictions recognize such claims, although many do not. A tort of negligent interference occurs when one party's 1416: 1458: 212: 1009: 884: 1237: 1207: 1635: 1621: 1301: 69: 603: 1329:, 175 U.S. 303 (1927) (lost profits held remote damage); Restatement (Second) of Torts § 766C (1979). See also 535: 393: 1146:
Some cases add that a defendant acts negligently only if the defendant owes the plaintiff a duty of care.
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to formalize the sale writing. Such conduct is termed "tortious interference with a business expectancy".
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performance of a contract although the parties were not in contractual privity") (emphasis supplied);
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S., J. C. (June 1977). "Negligent Interference with Contract: Knowledge as a Standard for Recovery".
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The existence of a contractual relationship or beneficial business relationship between two parties.
1186: 731: 715: 282: 242: 51: 1302:"Tort of inducement to breach of contract requires actual knowledge and an intention to interfere" 1389:, S.D. Calif. 2010). (This is comparable to recognizing manslaughter but decriminalizing murder.) 596: 421: 388: 1589: 877: 792: 614: 525: 368: 313: 217: 112: 43: 1035: 970: 752: 726: 645: 530: 287: 247: 234: 1111:
Intent of the third party to induce a party to the relationship to breach the relationship.
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Tortious interference with contract rights can occur when one party persuades another to
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no cause of action exists for negligent interference with contractual relations. See
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deal primarily with the United Kingdom and the United States and do not represent a
1605: 1362:, 14 Cal. App. 4th 842, 845, 17 Cal. Rptr. 2d 757 (1993) ("The tort of intentional 1274: 787: 767: 640: 568: 520: 469: 402: 344: 252: 229: 171: 159: 917: 1085:
In the United Kingdom, a trade union encouraging or facilitating workers to take
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An early (perhaps the earliest) instance of recognition of this tort occurred in
991: 782: 444: 373: 356: 1371:, 54 Cal. 2d 632, 636—637, 7 Cal. Rptr. 377, 354 P.2d 1073 (1960). But the 1609: 822: 578: 460: 378: 180: 126: 121: 1644: 1114:
Lack of any privilege on the part of the third party to induce such a breach.
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Tri-Growth Centre City, Ltd. v. Silldorf, Burdman, Duignan & Eisenberg
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The application of the above has since been modified in English law. In
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Sabotaging someone else's business relationship with a third party
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from being able to uphold its existing contracts with consumers.
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John L. Diamond and Lawrence C. Levine and M. Stuart Madden,
1616:, Aspen Law & Business (New York, 2002), pp. 31–36. 982:
has not been actionable cause if the interference was merely
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San Francisco Design Center Associates v. Portman Companies
1449:"Trade Union and Labour Relations (Consolidation) Act 1992" 909: 94: 1550:, 68 Cal. App. 4th 1179, 1187, 81 Cal. Rptr. 2d 39 (1999). 920:, causing economic harm. As an example, someone could use 1514:, 52 Cal. App. 4th 326, 348, 60 Cal. Rptr. 2d 539 (1997). 1501:, 59 Cal. App. 4th 764, 786, 69 Cal. Rptr. 2d 466 (1997). 1091:
Trade Union and Labour Relations (Consolidation) Act 1992
1537:, 41 Cal. App. 4th 29, 42, 50 Cal. Rptr. 2d 716 (1995). 1208:"Intentional interference with contractual relations" 1574:, 2 Cal. App. 3d 846, 857, 82 Cal. Rptr. 830 (1969). 1120:
Damage to the party against whom the breach occurs.
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intentional interference with contractual relations
1572:Charles C. Chapman Building Co. v. California Mart 976: 964:Tortious interference with a business relationship 1642: 1417:"Economic Torts: Are Two Torts Better Than One?" 1108:Knowledge of that relationship by a third party. 1630:, Lexis Nexis (New York, 2000), p. 413. 1499:North American Chemical Co. v. Superior Court 1415:Scott, J. M.; Laney, A. (14 September 2007). 878: 32:The examples and perspective in this article 138:Intentional infliction of emotional distress 1360:Settimo Associates v. Environ Systems, Inc. 1414: 946:Tortious interference with contract rights 885: 871: 278:Negligent infliction of emotional distress 1327:Robins Dry Dock & Repair Co. v. Flint 1299: 1232: 1230: 1228: 1117:The contractual relationship is breached. 70:Learn how and when to remove this message 1300:Freehills, Herbert Smith (23 May 2007). 1585:Commerce Bank v. Deborah Flavin Durland 1422:. Crown Office Chambers. Archived from 1260: 1258: 1163:plaintiff to perform at the same time. 1643: 1560:PMC, Inc. v. Saban Entertainment, Inc. 1225: 1033:The tort was described in the case of 1410: 1408: 1166: 1472: 1255: 18: 1205: 1067: 13: 1628:Understanding Torts Second Edition 1405: 1264: 14: 1662: 1212:LII / Legal Information Institute 916:or business relationships with a 1138:the defendant was negligent; and 852: 23: 1577: 1565: 1553: 1541: 1529: 1517: 1504: 1492: 1466: 977:Negligent tortious interference 604:Ex turpi causa non oritur actio 1441: 1392: 1336: 1319: 1293: 1206:Ash, Elliott T. (4 May 2010). 1199: 940: 930:tort of negligent interference 1: 714:(term used for torts in some 1562:, 45 Cal. App. 4th 579, 603. 1479:Nevada Theories of Liability 1379:, appears to have overruled 7: 1175: 1096: 1080: 997: 610:Joint and several liability 46:, discuss the issue on the 10: 1667: 1599: 1548:Lange v. TIG Insurance Co. 1153: 384:Comparative responsibility 1348:In re Kinsman Transit Co. 699:Non-economic damages caps 1369:Fifield Manor v. Finston 1192: 1187:Alienation of affections 932:occurs when one party's 732:Private attorney general 686:Other topics in tort law 314:Principles of negligence 243:Alienation of affections 1614:Property, Fifth Edition 1352:J'Aire Corp. v. Gregory 1238:"Tortious Interference" 597:Volenti non fit injuria 422:Ultrahazardous activity 389:Contributory negligence 1590:141 S.W.3d 434 1386:Young v. Fluorotronics 1344:Union Oil Co. v. Oppen 615:Market share liability 548:Shopkeeper's privilege 526:Statute of limitations 369:Restitutio ad integrum 218:Intrusion on seclusion 113:Trespass to the person 1459:The National Archives 1036:Keeble v Hickeringill 1010:Court of King's Bench 898:Tortious interference 727:Conflict of tort laws 493:Tortious interference 248:Criminal conversation 235:Malicious prosecution 1045:trespass on the case 225:Breach of confidence 52:create a new article 44:improve this article 1512:Limandri v. Judkins 1429:on 29 December 2009 1267:Virginia Law Review 1019:Tarleton v McGawley 1016:In a similar case, 952:breach its contract 720:mixed legal systems 590:Respondeat superior 584:Vicarious liability 543:Defence of property 480:Insurance bad faith 394:Attractive nuisance 213:Invasion of privacy 1454:legislation.gov.uk 1167:Additional example 1041:103 Eng. Rep. 1127 620:Transferred intent 511:Assumption of risk 475:Restraint of trade 451:Rylands v Fletcher 283:Employment-related 132:False imprisonment 1473:Richards, Jared. 1400:Ramirez v. Selles 1331:Venhaus v. Shultz 895: 894: 768:England and Wales 723: 574:Last clear chance 569:Intentional torts 553:Neutral reportage 536:Defense of others 484: 417:Product liability 363:Res ipsa loquitur 350:Reasonable person 258:Breach of promise 107: 80: 79: 72: 54:, as appropriate. 1658: 1606:Jesse Dukeminier 1593: 1587: 1581: 1575: 1569: 1563: 1557: 1551: 1545: 1539: 1533: 1527: 1521: 1515: 1508: 1502: 1496: 1490: 1489: 1487: 1485: 1475:"TruCounsel.com" 1470: 1464: 1462: 1445: 1439: 1438: 1436: 1434: 1428: 1421: 1412: 1403: 1396: 1390: 1340: 1334: 1323: 1317: 1316: 1314: 1312: 1297: 1291: 1290: 1262: 1253: 1252: 1250: 1248: 1234: 1223: 1222: 1220: 1218: 1203: 1068:Typical examples 900:, also known as 887: 880: 873: 857: 856: 713: 482: 345:Standard of care 230:Abuse of process 140: 101: 82: 81: 75: 68: 64: 61: 55: 27: 26: 19: 1666: 1665: 1661: 1660: 1659: 1657: 1656: 1655: 1641: 1640: 1602: 1597: 1596: 1583: 1582: 1578: 1570: 1566: 1558: 1554: 1546: 1542: 1534: 1530: 1522: 1518: 1509: 1505: 1497: 1493: 1483: 1481: 1471: 1467: 1447: 1446: 1442: 1432: 1430: 1426: 1419: 1413: 1406: 1397: 1393: 1341: 1337: 1324: 1320: 1310: 1308: 1298: 1294: 1279:10.2307/1072614 1263: 1256: 1246: 1244: 1236: 1235: 1226: 1216: 1214: 1204: 1200: 1195: 1178: 1169: 1156: 1099: 1083: 1070: 1043:, styled as a " 1005:Garret v Taylor 1000: 992:utility company 979: 971:settlement date 966: 948: 943: 891: 851: 745:By jurisdiction 445:Public nuisance 374:Rescue doctrine 357:Proximate cause 269:Negligent torts 181:Dignitary torts 136: 76: 65: 59: 56: 41: 28: 24: 17: 12: 11: 5: 1664: 1654: 1653: 1639: 1638: 1624: 1610:James E. 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Index

worldwide view
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common law
Tort law
Outline
Trespass to the person
Assault
Battery
False imprisonment
Intentional infliction of emotional distress
Trespass
land
chattels
Conversion
Dignitary torts
Appropriation
Defamation
False light
Invasion of privacy
Intrusion on seclusion
Breach of confidence
Abuse of process
Malicious prosecution
Alienation of affections
Criminal conversation
Seduction
Breach of promise

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