When one individual injures another, the victim may have the right to file a lawsuit against the party who caused them harm. Businesses may do the same in many cases, provided that specific criteria are met. The underlying act or omission is known as a tort.

There are a number of different business torts that can trigger litigation, but the overarching goals are generally the same: to redress the wrong that was done, restore the victim to the state they were in prior to the tort, and to claim monetary compensation. If your business has been the victim of a tort or it has been accused of committing one, you will need serious legal representation to protect your rights and interests. Turn to the team at Levy Goldenberg LLP.

What Are Business Torts?

A tort, including in the context of business law, is any wrong that one party does to another, rendering the at-fault party liable for damages. Put simply, when someone harms someone else, that person can be held accountable. While personal torts in the context of personal injury law relate to such losses as medical bills or pain and suffering, business torts are concerned with economic losses that a business suffers.

Business torts are separate from breach of contract cases. In some ways, torts are more wrongful than breaches of contract. They involve a number of illicit, unethical, unscrupulous, or deliberately harmful commercial activities that harm the legitimate rights and interests of the business that is victimized.

Examples of Business Torts in Manhattan

Business tort law exists to give companies peace of mind that they can freely do their work without fear that someone else will wrongfully interfere with it or inflict damage upon them. Manhattan businesses may be the victims of (or accused of committing) the following torts, among others:

  • Fraud or misrepresentation: Intentionally misstating or being dishonest about a material fact (significant enough to affect a decision) is considered fraud or misrepresentation. This is done to convince a party to execute a particular business transaction that it otherwise likely would not have agreed to.
  • Breach of fiduciary duty: A fiduciary duty is one which requires a party to act in the best interests of another person or entity. The law recognizes the level of trust that must exist between businesses for their success, and can therefore hold a party liable for such behavior as self-dealing or engaging in deception.
  • Deceptive and unlawful trade practices: Everyday citizens in Manhattan are allowed to bring claims under New York’s Consumer Protection from Deceptive Acts and Practices statute. The plaintiff must show they suffered injury and that the defendant did something that would mislead a reasonable consumer (e.g. false advertising).
  • Tortious interference with a contract: This occurs when a party knows about a contract between two business entities and then intentionally causes a breach of the agreement. Available relief includes an injunction and monetary damages to compensate the plaintiff for benefits it would have received had the contract been honored.
  • Tortious interference with a prospective business relationship: If a contract has not yet been signed but its execution was imminent, this relief may be available. Similar to interference with a contract, the Manhattan plaintiff can seek relief that compensates it for the economic harm resulting from the interference.
  • Defamation: As with private individuals whose reputations have been damaged because of false statements, businesses can also sue persons and entities who have knowingly lied about the quality or nature of their goods or services. Another term for this is commercial disparagement, and the victim must link financial losses to specific defamatory statements.
  • Misappropriation of trade secrets: Employees, former employees, and other businesses may steal or otherwise misappropriate a company’s confidential information. This information is known as a trade secret and includes any process, formula, device, or compilation that gives a business economic advantage over businesses that do not possess it.
  • Conversion of business property: Conversion usually means taking someone else’s property or using it without authorization. In the business context, a person or entity can be held liable for conversion even if they do not intend to assume or exercise rights over the property. Proof that the defendant acted without authorization may be sufficient.

Our Approach to Representing Manhattan Clients

Whether you are the plaintiff or the defendant in a business tort lawsuit, it is vital to the success of your case that you retain knowledgeable legal counsel. Business torts are not always evident; on the other hand, what appears to be a wrongful act may be innocent in consideration of all relevant facts. We are mindful of the elements that a party must prove in one of these cases, and we investigate fully to acquire the evidence necessary to advocate for our clients.

Our firm also understands that making the most of business litigation requires putting forth the strongest theory of recovery. New York judges are not always receptive to plaintiffs who try to pursue both breach of contract and business tort arguments. So we analyze the evidence, help the client determine which approach is likely to be the most successful, and then develop a results-oriented strategy to implement it.

Lastly, we take a serious look at all options for winning our clients the compensation or judicial relief that they deserve. To that end, we explore whether informal or formal negotiations, for example through mediated settlement, are preferable to taking a case to court. This allows our clients to decide how to proceed, taking into consideration their overall financial interests and what is best for their organizations.

Contact Our Manhattan Business Torts Attorney

Litigating business torts requires evaluating your needs and interests as a plaintiff or defendant, explaining the alternatives and potential outcomes, and then seeking the most optimal results. With potentially significant damages hanging in the balance, not to mention your company’s market position and reputation, you simply cannot afford to forgo hiring dedicated legal representation. Get started today by connecting with Levy Goldenberg LLP.