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What Is the Unlawful Means Tort?

The unlawful means tort is a legal claim that allows one party to seek compensation when another party intentionally interferes with their economic interests through unlawful acts directed at a third party. Unlike direct interference torts, where a person’s actions directly harm the plaintiff, the unlawful means tort involves harm caused indirectly by unlawful actions aimed at a third party. This tort is commonly applied in commercial disputes, particularly where a competitor uses illegal methods to disrupt another party’s business relationships or economic interests.

Elements of the Unlawful Means Tort

To succeed in an unlawful means tort claim, the plaintiff must generally prove the following elements:

Unlawful Act Directed at a Third Party - The defendant must have committed an unlawful act (such as fraud, threats, or coercion) directed toward a third party. The act must be independently actionable or recognized as wrongful in civil or criminal law.

Intent to Harm the Plaintiff - The defendant must have intended to harm the plaintiff economically by using unlawful means against the third party. This intent distinguishes the tort from negligent or incidental actions.

Actual Economic Harm - The plaintiff must show that they suffered measurable economic harm as a direct result of the defendant’s unlawful act. This can include lost business opportunities, revenue loss, or damaged relationships with clients or partners.

Common Scenarios for Unlawful Means Tort Claims

The unlawful means tort is often relevant in business and commercial contexts, where economic interests are at stake, and competitors may attempt to disrupt each other through improper methods. Common scenarios include:

Interfering with Supplier Relationships - If a competitor uses unlawful threats or fraud to convince a supplier to stop providing goods to a business, that business may pursue an unlawful means tort claim.

Disrupting Contracts or Business Opportunities - Unlawful actions directed at a third party, such as a client or partner, with the intent of harming the plaintiff’s business or reputation can be actionable under the unlawful means tort.

Fraudulent Statements to Third Parties - Making false statements to a third party to undermine the plaintiff’s business or contracts can qualify if the actions were unlawful and intended to cause harm.

Undermining Bids or Tenders - In cases where one party unlawfully interferes with a competitor’s bid or tender by providing false or misleading information to a third party, the affected business may have a claim.

Legal Issues Related to the Unlawful Means Tort

The unlawful means tort involves unique legal challenges, particularly concerning intent, the definition of "unlawful," and establishing the causal link between the defendant’s actions and the plaintiff’s harm. Key legal considerations include:

Definition of “Unlawful Means” - The term “unlawful” can vary depending on jurisdiction and context. Courts typically require the act to be independently actionable, meaning it would be legally recognized as wrongful, whether criminal or civil.

Proof of Intent to Harm - The plaintiff must show that the defendant’s primary motive was to harm them economically. This is often challenging and may require evidence of deliberate targeting or malicious conduct.

Indirect Harm Requirement - The unlawful means tort involves harm caused indirectly through actions aimed at a third party, which differentiates it from other interference torts. The plaintiff must establish that their harm resulted specifically from the defendant’s unlawful acts against another party.

Proving Economic Damages - The plaintiff must demonstrate specific economic damages caused by the defendant’s actions, which can involve complex calculations, especially if future business opportunities were lost.

Distinction from Other Torts - The unlawful means tort is distinct from direct interference torts, such as inducing breach of contract or defamation, which involve direct harm. Plaintiffs must carefully distinguish the tort based on the indirect harm and unlawful means elements.

Take the Next Step

The unlawful means tort is a powerful remedy for businesses affected by competitors' or other parties' wrongful actions. At ME Law, we offer tailored solutions to support your needs, whether pursuing or defending against claims of unlawful interference. Contact us today to discuss your case and protect your economic interests in complex legal matters.

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