Last Updated on December 10, 2022 by Anda Malescu
This article discusses how business tort liability can escalate to criminal liability in the United States. However, before diving deeper into the topic it is important to understand what business torts in the United States are and the liability typically associated with committing business torts.
In the United States, business torts are primarily governed under state common law and state statutes. Business torts, also known as economic torts, are wrongful acts committed against a business that result in economic or financial loss to the business, loss of business opportunities and market share, loss of clients and business relations, or harm to business reputation and intellectual property. Oftentimes business torts are intentional acts committed by another person, whether individual or company, but can also be negligent or reckless acts. Regardless of whether the wrongful acts are intentional or not, the commission of business torts results in legal liability.
There are a variety of business torts that result in business tort liability including defamation, invasion of privacy, trespass, intentional misrepresentation or fraud, conversion, disparagement, intentional interference with contract or business relations, unfair competition, misappropriation, theft of trade secrets and others. The primary remedy for business torts liability is monetary damages paid by the wrongdoer. Monetary damages can include compensatory damages, punitive damages and pain and suffering damages. Where monetary damages do not make the injured party whole again, other remedies in the form of temporary or permanent injunctions are available. Injunctions either prohibit unlawful activities by the wrongdoer or may order the wrongdoer to take affirmative steps.
To understand how business tort liability can escalate to criminal liability we first discuss how business tort differs from a crime. First, business torts are violations of civil rights prescribed by state common law and state statutes, while a crime is a violation of criminal law. Second, in the case of business torts the wrongdoer’s responsibility for the acts is determined based on liability while responsibility for a crime is determined based on guilt. Third, the goal for imposing business tort liability is to compensate the injured company for the harm while the goal for imposing criminal liability is to punish the criminal for the unlawful acts and protect the general public. Last, the remedies for torts include primarily monetary damages awarded to the injured party, while in the case of criminal liability, the punishment may include a fine, community service, restitution to the victim, or jail sentence.
Some actions are punishable under both criminal law and tort law, and therefore the law imposes both tort liability and criminal liability. Torts that may also constitute criminal acts punishable by criminal law include battery and assault. In other words, in many states, battery and assault are torts but may also qualify as crimes. In such cases, typically tort law provides a monetary remedy to the injured party, while criminal law provides punishment (in the form of fines, jail time or community service) for the defendant who committed the assault or battery.
In order to show how business tort liability can escalate to criminal liability we analyze battery under tort law and criminal law. In both criminal and civil law, battery is the intentional touching of, or application of force to, the body of another person in a harmful or offensive manner and without consent. Offenders may face both civil liability and criminal charges for a single act. Under tort law, an individual commits a battery if he acts intentionally either to cause a harmful or offensive contact or to cause imminent apprehension of such a contact and a harmful or offensive contact actually occurs. In order to recover damages, the victim must be harmed in some way, either physically, mentally or emotionally. The difference between battery as a crime and battery as a civil tort is merely in the type of intent required. A criminal battery requires the presence of a criminal intent to do wrong (in this case to cause a harmful or offensive contact). Accordingly, a defendant found guilty of the crime of battery is often sued by the defendant in a civil action for the same incident.
Business torts liability can escalate to criminal liability when a criminal intent is present for the incident and the state law qualifies the offense as crime under the state criminal law. Contact us, your business attorney in Florida to assist you with your business tort case or schedule a consultation.
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