Economic torts CASES

Economic torts are a group of common law claims that deal with deliberate interference with another person’s or business’s economic interests. They are concerned with intentional wrongdoing, not carelessness, and are aimed at situations where someone uses unlawful or improper means to cause financial loss.

Core idea

Unlike negligence, economic torts require intention. The defendant must have acted deliberately, knowing (or being reckless as to whether) their conduct would harm the claimant’s economic interests. The law sets a high threshold to avoid penalising ordinary commercial competition.

Main types

The principal economic torts include inducing breach of contract, causing loss by unlawful means, and conspiracy. Inducing breach of contract involves knowingly persuading a party to break an existing contract. Causing loss by unlawful means focuses on using unlawful acts to interfere with a third party’s dealings with the claimant. Conspiracy involves an agreement between two or more people to cause economic harm, with different tests depending on whether the means used are lawful or unlawful.

How they fit with other claims

Economic torts often appear alongside claims for breach of contract or breach of confidence, particularly where third parties are said to have been involved. They are distinct from negligence and do not depend on a duty of care. Statutory regimes, such as competition or regulatory law, may overlap on the facts but operate on different principles.

Typical situations

These claims commonly arise in commercial disputes involving competitive interference, employee poaching, misuse of confidential information, supplier pressure, or coordinated action against a competitor. They are frequently used where contractual remedies alone do not reach all of the alleged wrongdoing.

Limits and defences

Courts approach economic torts cautiously. It is not enough that loss was foreseeable; the intention to cause economic harm must be shown. Legitimate competition, even if aggressive, is not unlawful without improper means or the required intent. Lack of knowledge, justification and causation are common lines of defence.

Why they matter

Economic torts provide a way to address deliberate commercial misconduct that falls outside contract and negligence. When properly made out, they can support claims for damages or injunctions, but they are demanding to plead and prove, and courts expect them to be used with care.