Commercial Tort Lawyers in Carmel, IN

Overview of Commercial Torts

In business law, commercial torts encompass civil wrongs that may be committed by or against an organization. These wrongs can substantially affect a company's reputation, relationships, and financial stability. 

They primarily stem from actions that cause direct harm to a business, its resources, or its relationships, often involving unethical or illegal practices. 

Common commercial tort claims include but are not limited to:

• Breach of contract: This is one of the most common commercial torts, where one party fails to live up to the terms agreed upon in a contract. The impacts can be significant, affecting not only the immediate transaction but potentially the long-term viability of a business relationship.
• Fraud: This involves a deliberate misrepresentation or omission of a material fact to induce another party to act to their detriment. Fraud can occur in various forms, such as securities fraud, insurance fraud, or corporate fraud.
• Misrepresentation: This involves making a false statement that induces another party into a contract. The misrepresentation can be fraudulent (made knowingly), negligent (made carelessly), or innocent (made without fault).
• Infringement of intellectual property rights: This involves the unauthorized use of a business's intellectual property, such as trademarks, patents, copyrights, or trade secrets. This can lead to significant financial losses and damage a brand's reputation.
• Interference with contractual relations: A third party intentionally disrupts a contractual relationship between two entities, causing one party to breach the contract. This can lead to significant commercial damage and potential litigation.
• Breach of fiduciary duty by an employee, director, partner, or shareholder: Individuals in positions of trust within a company have a fiduciary duty to act in the company’s best interest. This duty includes performing honestly and in good faith, avoiding conflicts of interest, and not using one’s position for personal gain at the company’s expense. Breach of this duty can significantly harm a company's interests, including misappropriation of corporate assets, self-dealing, authorizing excessive executive compensation without proper justification, or failing to disclose conflicts of interest.

Commercial Tort Remedies

Commercial torts are civil matters, meaning they are disputes between private parties. Unlike criminal cases, which are prosecuted by the state, commercial tort cases are initiated by the injured party who seeks remedies for the damages they've incurred.

Legal remedies will vary depending on the nature of the case.

Common remedies include: 

• Compensatory damages: These are intended to compensate the injured party for the loss due to the tort. This could include actual losses incurred, such as lost profits or costs of repairing damaged property.
• Consequential damages: These are awarded for losses caused by the tort but are not the immediate result of the tort. For instance, loss of business opportunities resulting from damage to reputation.
• Punitive damages: These are awarded in addition to compensatory damages, intended to punish the defendant for particularly egregious conduct and deter similar behavior in the future.
• Injunctions: An injunction is a court order compelling a party to do or refrain from doing certain acts. An injunction may prevent further harm to the plaintiff's (the party filing the lawsuit) business.
• Disgorgement of profits: The defendant gives up profits from the tortious conduct. This is particularly common in cases involving infringement of intellectual property rights.
• Declaratory judgments: A declaratory judgment is a court's statement about the rights and responsibilities of parties in a dispute. This can provide clarity and prevent further conflicts.
• Rescission of contract: In cases involving fraud or misrepresentation leading to a contract, the contract may be rescinded or canceled, restoring the parties to their position before the agreement was made.
• Reformation of contract: The court may choose to rewrite portions of the agreement to correct inequities resulting from misrepresentation or fraud.
• Specific performance: This court order requires the party who breached the contract to perform what they contractually agreed to do. This remedy is typically used when damages would be inadequate compensation.