Only a few Americans have an in-depth understanding of laws and regulations. Know-how of business law is even rarer. However, if you’re interested in starting your venture in Chicago, you need to be familiar with tort law.
Business tort law, or economic tort law, protects your entity against any possible harm by an individual or another business. Since Chicago is a lucrative avenue for enterprises, understanding business tort law can be an asset for the city’s budding entrepreneurs. When you start your pursuit, and another party intentionally or unintentionally damages your entity and is found liable for the tort, business tort attorneys in Chicago can claim compensation and other remedies.
Let’s delve into business tort law so you can protect your enterprise’s interest right from the beginning.
Tort – An Overview
A tort is any wrongful act committed by an individual or an entity that causes harm, injury, loss, or suffering to another person.
An economic tort is a subcategory of the wider torts that protects your entity against other individuals and businesses for economic damages.
Business Tort Laws – Significance
Economic tort laws offer a unique perspective to business owners. It helps organizations recognize that other individuals and companies may intentionally or unintentionally get involved in practices and actions that can harm your corporation.
In case of damage to your firm’s activity or reputation, you can hire a legal expert to file a claim on your behalf to recover financial compensation for any damage or loss your business experienced or might experience in the future because of the defendant’s wrongful actions.
Common Economic Torts Examples
Economic torts can include a range of actions that an individual or enterprise may commit against your business. Some of the common examples include
Violation of Fiduciary Duties
In many entities, there’s an agreement between the concerned parties where one decides to be the fiduciary who will always act in the best interest of the other related party, known as the beneficiary. A classic example of a fiduciary relationship is between a client and a legal expert or between the board of directors of an organization and its shareholders.
If the fiduciary breaches this agreement and fails to act in the best interest of the beneficiary. In that case, it is considered a business tort, and the beneficiary is legally entitled to sue the fiduciary for violating his duties.
Tortious Actions or Intentional Intervention
In some cases, a third-party intervention between the entity and its stakeholders can cause damage to the corporation’s reputation. If the intervention inflicts damage on your entity, you can seek legal assistance to claim damages from the third party for intentional intervention.
Fraud
Fraud makes one of the most common torts where an individual or an organization deceptively deals with your entity causing damage to your venture.
While fraud makes a common tort, it’s also one of the most challenging torts to file a claim. It involves proving several elements, including intentional hiding or misrepresentation of facts and the resulting damage to your organization due to the misrepresented facts.
Remedies for Business Torts
When you file a lawsuit and it is successful, your organization may receive the following remedies.
● Legal Remedies – a monetary compensation the defendant pays for the losses.
● Punitive Damages – a legal action by the court against the defendant where the accused individual or organization is entitled to punishment.
● Equitable Relief – If the claimed damages appear unfair to the court, the court offers an equitable relief where both plaintiff and the defendant are fairly treated. The court then awards fair compensation for the victim’s damages. Examples of equitable relief include specific performance, restitution, and injunctions.
Get a Legal Expert to Assist You with Business Torts
If your business has suffered a loss from possible malpractice, you are entitled to compensation by the defendant for damages or remedies. Let a legal expert help you file a business tort lawsuit and get your rightful compensation.
