Legal Definitions - commercial tort claim

A commercial tort claim refers to a legal claim for harm or loss suffered by a business or a professional individual due to a wrongful act (known as a "tort") committed by another party. This type of claim specifically arises from the claimant's business activities or professional practice.

It is distinct from other tort claims because it excludes any damages related to physical injury or death of an individual. Instead, commercial tort claims focus on financial losses, damage to reputation, or other business-related harms.

Here are some examples to illustrate this concept:

• Example 1: Business Disparagement

  A local restaurant, "The Gilded Spoon," discovers that a rival establishment has been intentionally spreading false rumors online, claiming The Gilded Spoon uses unsanitary practices and expired ingredients. As a direct result, The Gilded Spoon experiences a significant drop in customer traffic and revenue.

  How it illustrates: The claimant is an organization (The Gilded Spoon), and the harm (lost revenue, damaged reputation) arose directly from its business operations. The claim is for financial and reputational damage, not for personal injury or death.

• Example 2: Fraudulent Misrepresentation

  "Apex Construction Inc.," a building contractor, is negotiating a large project with a new client. A third-party materials supplier, hoping to secure a lucrative contract, intentionally provides Apex Construction with false specifications and inflated performance data for their building materials. Relying on these misrepresentations, Apex Construction bids for the project at a lower cost than feasible and, upon discovering the truth, incurs substantial unexpected expenses and delays to complete the project, leading to significant financial losses.

  How it illustrates: The claimant is an organization (Apex Construction Inc.), and the claim stems from a wrongful act (fraudulent misrepresentation) that directly impacted its business operations and caused financial loss. The claim does not involve personal injury or death.

• Example 3: Tortious Interference with Contractual Relations

  "Digital Marketing Solutions LLC" had a binding contract to manage the advertising campaigns for a major client for three years. A competing marketing firm, "Innovate Ads Co.," intentionally interfered with this agreement by offering the client an unsustainable, heavily discounted rate and making false promises about their superior service, knowing it would induce the client to breach their contract with Digital Marketing Solutions LLC. As a result, Digital Marketing Solutions LLC lost a valuable client and significant future revenue.

  How it illustrates: The claimant is an organization (Digital Marketing Solutions LLC), and the claim arises from a wrongful act (interference with contract) that directly harmed its business interests and financial standing. The claim is solely for business-related losses, not for personal injury or death.