Business Torts

A company’s confidential information is often among its most valuable assets. Customer lists, pricing information, business strategies, proprietary software, formulas, manufacturing processes, and other confidential information may qualify as trade secrets when appropriate measures have been taken to keep the information confidential.

Trade secret disputes commonly arise when former employees, business partners, vendors, or competitors improperly obtain or use confidential business information. In today’s digital economy, these claims may also involve downloaded files, cloud storage, cybersecurity incidents, or unauthorized use of proprietary business data.

If confidential information has been improperly acquired or used, businesses may have legal remedies to protect their competitive advantage and recover resulting damages.

Many businesses rely on employment agreements containing confidentiality, non-solicitation, or non-competition provisions to protect legitimate business interests.

Disputes often arise when former employees begin working for competitors, solicit customers, recruit former coworkers, or use confidential information after leaving the company. While these agreements can provide important protections, their enforceability depends on the specific language of the agreement and the applicable state law.

Whether you are seeking to enforce a restrictive covenant or defending against one, experienced legal guidance is essential.

Strong customer and business relationships are critical to long-term success. When a third party intentionally interferes with those relationships, significant financial losses can result.

Business interference claims commonly involve:

• Existing contracts with customers or vendors
• Pending business opportunities
• Supplier relationships
• Strategic partnerships
• Client relationships

These disputes often require careful analysis of the surrounding facts and the actions allegedly taken to disrupt the business relationship.

Conversion occurs when someone wrongfully exercises control over property belonging to another.

Business conversion claims may involve:

• Money
• Equipment
• Inventory
• Electronic records
• Customer information
• Digital assets
• Confidential files

These disputes frequently arise alongside claims involving trade secrets, breach of fiduciary duty, or employee misconduct.

Certain individuals owe fiduciary duties to the businesses they serve. Corporate officers, directors, partners, LLC members, and, in some circumstances, employees may have legal obligations to act in the best interests of the business.

Potential breaches may include:

• Self-dealing
• Diverting business opportunities
• Misusing confidential information
• Undisclosed conflicts of interest
• Competing against the company
• Misappropriating company assets

When these duties are violated, businesses may have the right to seek financial damages or other legal remedies.

A business’s reputation can be one of its most valuable assets.

False statements made by competitors, former employees, or others may damage customer relationships and reduce revenue. Claims involving business defamation or commercial disparagement often arise from online reviews, social media posts, advertising campaigns, press releases, or other public communications.

Because not every negative statement creates legal liability, these claims require careful legal evaluation.

When individuals or businesses improperly transfer assets to avoid paying legitimate creditors, those transfers may be challenged under applicable law.

Fraudulent transfer claims commonly arise during:

• Business dissolutions
• Insolvency proceedings
• Creditor disputes
• Judgment enforcement
• Bankruptcy-related litigation

Early legal action may be necessary to preserve assets and protect creditors’ rights.

Technology has transformed how businesses operate, and how business disputes arise.

Today’s commercial litigation increasingly involves digital assets, electronic communications, cloud-based information, cybersecurity incidents, and artificial intelligence. Businesses now face risks involving stolen digital files, unauthorized access to confidential information, misuse of proprietary data, employee downloads before resignation, business email compromise, and AI-assisted unfair competition.

As technology continues to evolve, businesses should regularly review their policies, agreements, and security practices to help reduce legal risk and protect valuable business assets.

The remedies available in a business tort case depend on the specific facts and applicable law. In many cases, businesses may seek:

• Compensatory damages
• Lost profits
• Injunctive relief
• Recovery of business property
• Punitive damages where permitted by law
• Attorneys’ fees in certain circumstances

Prompt legal action can also help preserve evidence and prevent additional harm while a dispute is pending.

A business tort is wrongful conduct that causes financial harm to a business. Unlike a breach of contract claim, a business tort arises from duties imposed by law rather than solely from contractual obligations.

A breach of contract involves failing to perform obligations under an agreement. Business tort claims generally involve independent wrongful conduct, such as fraud, trade secret theft, interference with business relationships, or breach of fiduciary duty.

Depending on the circumstances, yes. Former employees may face claims involving trade secret misappropriation, breach of fiduciary duty, violation of confidentiality agreements, unfair competition, or other business torts.

Potentially. False factual statements that damage a business’s reputation may give rise to claims for business defamation or commercial disparagement. Whether a claim exists depends on the specific facts and the applicable law.

Business tort claims often involve complex legal and factual issues. Early legal guidance can help preserve evidence, protect confidential information, minimize business disruption, and position your company for the best possible outcome.