What is an economic tort?

An economic tort is a violation of the right of another person or entity to the economic benefit of their property or labor. Economic torts often involve intentionally inflicting economic harm, such as by dishonest or fraudulent means or by using monopoly power to force unfair terms of trade. In Mississippi, economic torts include breach of fiduciary duty, fraud, misappropriation of trade secrets, interference with contract, conversion, and unjust enrichment. A breach of fiduciary duty occurs when a person to whom a duty of loyalty or trust has been entrusted fails to comply with his or her obligations. Examples of a breach of fiduciary duty can include a trustee of a trust fund misappropriating funds, a director of a company making improper use of corporate funds, or a lawyer failing to uphold client confidentiality. Fraud is the intentional misrepresentation of a material fact with the intention of inducing someone else to act on the misrepresentation. Examples of fraud can include creating false invoices to obtain payment, or making false representations about a product or service in order to entice someone to purchase it. Misappropriation of trade secrets occurs when someone steals another’s trade secrets, such as confidential information or processes, in order to gain an economic advantage. Interference with contract is a tort that occurs when someone intentionally interferes with the performance of a contract that already exists between two other parties. Conversion is a form of trespass to chattels, which is the wrongful taking or use of another’s personal property without consent. Unjust enrichment occurs when money or property that rightfully belongs to one person is kept by another. It is a form of restitution in which one person is unwillingly enriched at the expense of another.

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