Causing Loss by Unlawful Means CASES

In English law, causing loss by unlawful means is a targeted economic tort. A defendant commits unlawful acts against a third party that interfere with that third party’s freedom to deal with the claimant, intending thereby to cause the claimant economic loss. It is distinct from inducing breach of contract (which concerns interference with a contract between claimant and defendant’s target) and from conspiracy (which requires combination).

Definition and principles

The tort has a three-party structure: defendant → unlawful act → third party → economic loss to the claimant. “Unlawful means” are acts that would be actionable by the third party (or would be if the third party suffered loss), and which restrict the third party’s liberty to deal with the claimant. Mere unlawfulness towards the claimant, or towards the world at large, is not enough. The defendant must intend to cause loss to the claimant as an end in itself or as a means to another end; foreseeability or recklessness is insufficient.

Elements

• Unlawful means against a third party: conduct independently actionable by the third party (e.g., deceit, intimidation, unlawful interference with goods, breach of a statutory duty owed to the third party).
• Interference with dealing: the unlawful act must impede the third party’s freedom to deal with the claimant (for example, to contract, to supply, or to continue a service).
• Intention to cause loss: the defendant intended to harm the claimant by that interference (loss as an end or a means).
• Causation and loss: the interference caused the claimant recoverable economic loss.

Common examples

• Deceit on a key counterparty: a rival knowingly feeds falsehoods to the claimant’s bank or supplier so that services are withdrawn; the bank could sue for deceit, and the claimant loses business.
• Unlawful pressure on intermediaries: threats or intimidation aimed at distributors to make them stop carrying the claimant’s products.
• Interference via a platform or regulator: unlawful manipulation of a platform operator or gatekeeper (for example, forged notices) so they disable the claimant’s account or approvals.

What does not qualify?

• Breach of contract with the claimant: sue for breach or for inducing breach; that is not “unlawful means” against a third party.
• Accidental or merely foreseeable loss: without a targeted intention to cause the claimant loss, the tort is not made out.
• Acts that do not restrict dealing: general wrongdoing that does not constrain a third party’s freedom to deal with the claimant falls outside the tort.

Legal implications

• Remedies: damages for economic loss; injunctions to restrain continuing interference.
• Interaction with other economic torts: consider, in the alternative, inducing breach of contract, unlawful means conspiracy, intimidation, and malicious falsehood.
• Pleading discipline: identify the specific third party, the precise unlawful acts actionable by that third party, how those acts restricted dealing, and the defendant’s intention to cause loss.

Practical importance

For claimants, gather the trail showing the defendant’s targeted unlawful approach to the third party (emails, notices, threats), how that constrained the third party’s dealings, and the resulting losses. For defendants, test each limb: was there any independently actionable wrong against the third party; did it in fact restrict dealing; and can intention to cause loss be proved? Often another economic tort (or a contract claim) is the better fit.

See also: Inducing breach of contract; Unlawful means conspiracy; Intimidation; Malicious falsehood; Passing off; Interference with goods.