LAW 122 Lecture Notes - Statutory Authority, Risk Management, Qualified Privilege
Business torts
Class 3
Chapter 4 & 5 Business Torts
• Deceit
o Tricking someone into believing or doing something
o Defendant makes a false statement which they know to be untrue, with which they intend to mislead the
plaintiff, and which causes the plaintiff to suffer a loss
▪ Defendant makes false statement
• Something that is positively untrue; can be a half truth
o E.g. it is raining outside; untrue because its snowing outside
• Written, published
▪ Falsifying representation
• Defendant knew the statement was false
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• Knew the statement was false when they made it
• Reckless in determining the truth
o Willfully lying
▪ Defendant intended to mislead
• Without making a direct statement, but disclosing to someone else or implying it is sufficient
• Omitting elements is considered misleading
o Test question
▪ Plaintiff incurred a loss by relying on the representation or statement they were mislead to believe
• Causation to reasonable rely on misleading information; must prove a loss was genuinely
incurred
• Reasonable reliance has to be on a past or present fact – used to mislead - not opinion
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o Can’t argue their opinion of information to present it as misleading
o Facts must be misleading about something that will happen in the present or future
o Buyer beware
▪ You buy at your own risk
o Avoid lying, but also avoid making misleading images, statements, and representation
• Defamation
• Nuisance
• Interference with Contractual Relations?
• Defences to Intentional Torts: complete and partial
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Document Summary
Deceit: tort #4: d makes a false statement which they know to be untrue with which they intend to mislead the plaintiff and which causes the plaintiff to suffer a loss. Case example: derry v. peek (1889: defendant directors of co. (peek) issued a prospectus which contained a false statement that it had obtained government authorization but had not yet received the authorization. Plaintiff invested in company on the basis of statement. Authorization eventually denied and company folded up: sued directors personally who were liable, false projection based on a nonfact is sufficient as a misleading statement. Defendant makes a false statement that could lead a reasonable person to have lower opinion of plaintiff. Nuisance: test: defendant unreasonably interferes with the plaintiff"s use and enjoyment of their own land. Increased criminals: water, vibration, particles, social/economic utility can be argued in defense. Nonphysical impairment: unreasonable under certain circumstances, sound, smell, intrusive, factors to consider.
