The economic torts

Economic torts offer protection for a person’s trade or business from acts which the law considers to be unacceptable. Although it is a fundamental element of business that businesses compete with one another and therefore to this extent, one business may succeed to the disadvantage of another, the economic torts seek to ensure that businesses are protected from acts of unacceptable interference.

The three established categories of economic torts are:

  1. procuring a breach of contract (ie, interference with contractual relations) which is also referred to as ‘inducing a breach of contract’. Allied to this is the so-called ‘Marex tort’ a cause of action predicated on the defendant’s alleged intentional violation of the claimant’s rights in a judgment debt, on which, see Practice Note: The Marex tort (interference with a judgment debt)

  2. causing loss by unlawful means, sometime referred to as unlawful interference with economic interests (commonly known as ‘unlawful interference’), and

  3. civil conspiracy, an agreement between two or more persons either:

    1. to use means, whether lawful or otherwise, the predominant or real purpose of which is to injure the claimant (ie ‘lawful means conspiracy’

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Court of Appeal confirms narrow scope for post-limitation substitution in wrong defendant cases (Adcamp LLP v Office Properties)

Dispute Resolution analysis: The Court of Appeal has ruled that CPR 19.6(3)(b) does not permit substitution of defendants after expiry of the relevant limitation period where such substitution would change the essential facts necessary to establish liability against the substituted defendant. The claimants (respondents in the appeal) had issued proceedings against firms which had acquired the alleged wrongdoers, believing that any liabilities had been transferred. When it emerged (or was at least disputed) that liabilities had not been transferred, they sought to add or substitute the predecessor firm after limitation had expired. The Court of Appeal concluded that CPR 19.6(3)(b) was not engaged since the substitution would change the claim in substance, as an essential element of the case against the original defendant (the pleaded basis for the acquiring firm’s liability) would be replaced by the primary liability claim against the substituted defendant. It was, in effect, a different claim against a different party. The Court of Appeal was clear that any perceived harshness this might cause to claimants could not be mitigated by adopting a broad reading of CPR 19.6(3)(b). Rather, it considered the problem (if any) was caused by earlier binding Court of Appeal authority which had confined the ‘mistake’ gateway in CPR 19.6(3)(a) to errors of name (misnomer) and excluded cases of mistaken legal responsibility/liability (identity). Any solution, if required, would therefore be a matter for the Supreme Court.

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