Legal Definitions - civil conspiracy

A civil conspiracy occurs when two or more individuals or entities agree to work together to commit a wrongful act that ultimately causes harm to another person or organization. Unlike a criminal conspiracy, which focuses on punishing the agreement to commit a crime, a civil conspiracy focuses on compensating the victim for the damages they suffered as a direct result of the conspirators' actions.

For a claim of civil conspiracy to be successful, there must typically be evidence of:

• An agreement between two or more parties.
• An unlawful objective or the use of unlawful means to achieve a lawful objective.
• An overt act (an action taken) by one or more of the conspirators in furtherance of the agreement.
• Resulting damage or injury to the person or entity bringing the lawsuit.

Here are some examples to illustrate civil conspiracy:

• Example 1: Business Fraud
  Two competing software companies, Company A and Company B, secretly agree to spread false and damaging rumors about the security vulnerabilities of a rival's popular new product, Company C. They coordinate a campaign of anonymous online posts and misleading press releases, causing Company C's sales to plummet and its stock price to fall significantly. Company C could sue Company A and Company B for civil conspiracy.

  Explanation: The agreement is between Company A and Company B. The wrongful act is spreading false information (defamation/disparagement). The overt acts are the online posts and press releases. The harm is the loss of sales and stock value suffered by Company C.

• Example 2: Real Estate Deception
  A property owner and their real estate agent conspire to hide a severe, unfixable mold problem in a house they are selling. They agree to paint over visible mold, instruct inspectors to avoid certain areas, and falsify disclosure documents to ensure a quick sale. A buyer purchases the house, only to discover the extensive mold, rendering the property uninhabitable and requiring costly remediation.

  Explanation: The agreement exists between the owner and the agent. The wrongful act involves fraudulent misrepresentation and concealment of a material defect. The overt acts include painting over mold, directing inspectors, and falsifying documents. The harm is the financial loss and uninhabitable property suffered by the buyer.

• Example 3: Intentional Harm
  A group of three individuals, angry at a local activist, agree to vandalize the activist's car and home to intimidate them. They plan the specific actions, including where and when to spray paint the car and break windows. They then carry out these acts, causing significant property damage and emotional distress to the activist.

  Explanation: The agreement is among the three individuals. The wrongful act is vandalism and intentional infliction of emotional distress. The overt acts are the actual spray painting and window breaking. The harm is the property damage and emotional distress experienced by the activist.