Economic Torts

Question 1

What is intentional misrepresentation?

Answer 1

Misrepresentations that are false, affirmative assertions of fact, an active concealments, or, under a limited set of circumstances, failure to disclose.

Question 2

What are the elements of intentional misrepresentation?

Answer 2

1. intentional material misrepresentation by D
2. of past or present fact
3. made with knowledge
4. on which P justifiably relies to P’s economic detriment

Question 3

When is failure to disclose sufficient for intentional misrepresentation?

Answer 3

1. There’s a fiduciary relationship
2. There’s an ambiguous or misleading statement that causes reliance
3. D makes and assertion, believing it’s true, but then either discovers it to be false or circumstances change as to make the assertion false, and D fails to disclose
4. D makes a false assertion not intending reliance but discovers P relied on the statement
5. P reasonably expects there would be disclosure

Question 4

What is mental state required for intentional misrepresentation?

Answer 4

D must intend that P or a class of persons which P belongs to rely by either acting or failing to act in reliance on D’s misrepresentation

Question 5

What is scienter requirement for intentional misrepresentation?

Answer 5

D either knew the statement was false, or was reckless as to its veracity

Question 6

What is negligent misrepresentation?

Answer 6

While D generally has no duty to avoid negligent infliction of pure economic loss, where there is a special relationship like a fiduciary duty, or if D knows they are acting for the benefit of a third party, and they rely and suffer an eonomic loss

Question 7

When may a D be held liable for negligent misrepresentation?

Answer 7

1. When there is a special relationship, like a fiduciary duty
2. If D knows they are acting for the benefit of a third party and the third party relies and suffers economic loss

Question 8

What is interference with prospective economic advantage?

Answer 8

Protects expectancy interests of future contract relations of a party

Question 9

What are elements required to prove interference with prospective economic advantage?

Answer 9

P can prevail only by showing that D
1. knew of prospective economic advantage
2. Acted to interfere with it for improper motives (D’s own competitive interest is NOT an improper motive)

Question 10

What is required to prove injurious falsehood?

Answer 10

P must prove:
1. false statement
2. actual malice, D knew the statement was false or D recklessly disregarded its veracity
3. made to another or published
4. causing specific economic injury to P

Question 11

Does injurious falsehood apply to economic or repetitional harms

Answer 11

Economic losses only - defamation is for repetitional harm