Business Torts

Business Torts Litigation

In addition to the contractual rights you negotiate you have several rights that protect your business assets, interests and expectations. Violations of these rights are called business torts; another name for wrongful acts. If these rights are violated you may be entitled to compensation. In addition to traditional business disputes, Mr. Giffin has handled several business tort cases. These include:

• Breach of fiduciary duty

• A fiduciary relationship is created when one party places trust and confidence in the other party who accepts that responsibility. A fiduciary relationship can also arise from particular relationships, such as a stockbroker to his client, a real estate agent to his principal, a trustee to the beneficiary or an officer or director of a corporation. Once a fiduciary relationship is created the fiduciary must:

• Keep the other person fully informed about any transactions he or she is handling;
• Make full disclosure of any personal interest he or she might have in the transaction;
• Exercise the utmost fidelity and good faith in carrying out what he or she agreed to do;
• Exercise reasonable skill, diligence and care in handling the matters entrusted to him or her;
• Exercise the utmost loyalty to the other person.

If the fiduciary fails to meet these obligations he or she is liable for any losses suffered and may be liable for punitive damages.

• Fraudulent misrepresentation and concealment

• In order for there to be fraud in a business transaction there must be:

• A representation of an important fact, as opposed to an opinion, that makes a real difference in the transaction (liability can also arise from a failure to disclose an important fact)
• The falsity of that important fact
• Knowledge by the speaker that the fact is false or ignorance by the speaker of its truth or falsity
• An intention by the speaker that the other person to the transaction relies and acts on the fact
• The listener’s reasonable reliance on the speaker’s truthfulness
• Injury or loss as a result of the listener’s reliance on the representation.

Statements as to future events can form the basis of liability if the person speaking has superior knowledge of the matter being discussed. In some instances, silence or the failure to disclose a fact can also be the basis for liability if there is a duty to disclose. This duty arises when there is a fiduciary or confidential relationship between the parties, when there is an inequality of condition between the parties or when one party has superior knowledge not within the fair and reasonable reach of the other party.

• Negligent misrepresentation

• There can be liability for negligent misrepresentation in a business transaction if:
  
  
• The speaker provided information in the course of his or her business;
• The speaker failed to use reasonable care to determine the information was false;
• The information was provided to a limited group of persons in a particular business transaction;
• The listener relied on the information; and
• The listener suffered a monetary loss.

• Missouri Merchandising Practices Act

• In addition to the common law liability for fraud, Missouri has a statute that prohibits the use of deception, fraud, false pretense, false promise, misrepresentation, unfair practice or the concealment, suppression or omission of any important fact. This statute gives damages to persons who have suffered a loss from such conduct an action for damages including punitive damages and attorney’s fees. This statute applies to a wide number of products and services including time-share and club memberships, residential real estate sales, the sale of automobiles, and the sale of mobile homes. It includes fraudulently understanding the odometer mileage of a vehicle or rolling back an odometer.

• Tortious Interference with contracts and business expectations

• Your expectations in a business relationship may also be protected under the law if:

• You have a contract or valid business expectancy
• The person interfering knows of this contract or relationship
• The interfering person without justification intentionally interferes with the contract or expectations
• The interference causes a breach of the contract or expectancy which causes a monetary loss

Interference with another’s contract or expectancy is only justified when the interfering person asserts in good faith his or her own legally protected interest.

• Conversion

• Conversion means the unauthorized assumption of ownership over the personal property of another to the exclusion of the owner’s rights. In order to recover a person must show that:

• He or she is the owner of or entitled to possession of the personal property
• That another has taken possession, or refuses to relinquish possession of the property
• The other person intends to exercise control over the property; and
• The owner is deprived of his or her right of possession.

These business disputes present complex issues of liability and damages. If you are involved in any of the above disputes, Mr. Giffin will be happy to consult with you as to whether you have a valid case or defense to another’s claim. Put his 35 years of experience to work for you.

Arbitration can effectively resolve the issues without the necessity of costly litigation. Mr. Giffin is highly skilled at negotiating business disputes. He can also represent you during mediation and arbitration proceedings, and sometimes serves as the mediator or arbitrator himself. 

If alternatives fail, however, and litigation is necessary, Reggie Giffin will fight tirelessly to get you the best possible result. Let his experience and commitment to the highest standards of legal service work for your business. Call (816) 453-2253 today for a free initial consultation to discuss your business dispute and find out what your options are.

Reggie C. Giffin, P.C.
200 NW 47th Street
Kansas City, Missouri 64116
Telephone: (816) 453-2253
Cell: (816) 588-6596
Fax: (816) 453-2496
Email: rgiffin@kc.rr.com

Contact us about your legal matter today!