In competitive industries, aggressive business tactics are expected—but not all conduct is fair or legal. If a business intentionally interferes with your company’s contracts, deceives you into a bad deal, or abuses confidential information, they may have committed a business tort. These claims can be complex, but the financial stakes are often high.
Business tort claims are complex, often supported by forensic accounting, expert testimony, and a thorough understanding of commercial law. Whether to file a lawsuit depends (among other
things) on the conduct, the amount at issue, and the complexity of the case—which often bears on the cost. The below provides a summary of business tort cases.
What Is a Business Tort?
A business tort is a wrongful act committed against a company or business interest that causes financial harm. Unlike breach of contract claims, which arise from broken written or oral
promises, business torts stem from misconduct—often intentional or reckless—that interferes with a party’s economic rights or relationships. Common examples of business torts include:
1. Fraud and Misrepresentation
What is fraud: When one party intentionally misleads another to induce them into a contract or transaction—such as lying about revenues or assets—that’s fraud. Plaintiffs must show a false statement of material fact, intent to deceive, reliance, and resulting harm.
2. Tortious Interference with Contract
What is tortious interference: If a third party intentionally disrupts your contractual relationship, such as convincing a vendor to break an exclusive deal, you may have a claim. These cases
require proof of a valid contract, intentional interference, and damages.
3. Breach of Fiduciary Duty
What is a breach of fiduciary duty: When partners, officers, or managers act in their own
interests instead of their company’s, it may amount to a breach. These claims often overlap with shareholder or partnership disputes.
4. Unfair Competition
What is are types of unfair competition: This broad category includes deceptive business practices, false advertising, or misuse of confidential information to gain an unfair edge.
5. Trade Secret Theft
What is trade secret theft: If a competitor steals proprietary information—such as client lists, software code, or manufacturing processes—you may have a claim under the Illinois Trade Secrets Act or the federal Defend Trade Secrets Act.
Remedies in Business Tort Litigation
Successful plaintiffs in business tort cases can seek a range of remedies, including: compensatory damages (i.e., damages that compensate you); consequential damages (i.e., lost profits); punitive
damages in cases involving fraud or malice; injunctive relief to stop ongoing misconduct; and equitable remedies (i.e., rescission or constructive trust).
