What is the scope of the tort of appropriation of corporate opportunity?

The tort of appropriation of corporate opportunity is a legal principle that applies in the state of Washington and prevents individuals from usurping business opportunities that rightfully belong to their employer. The scope of this tort is to ensure equitable competition in the marketplace, preventing an individual from exploiting its employer’s resources to secure an unfair business advantage. In Washington, the key element of this tort is the notion that a person has received a “special advantage” in acquiring a business opportunity over its employer. A person may not be found guilty of appropriation of corporate opportunity if it was given the opportunity as a result of their own merit or just chance. This tort applies to all types of business opportunities, such as contracts with suppliers, financial investments, real estate developments, or any other venture that may come with the promise of a financial profit. Furthermore, it applies to both current and former employees, as the tort is intended to protect the interests of the employer. In order to prove this tort, an employer must demonstrate that the individual acquired an opportunity through his or her position or relationship with their former or current employer, or had knowledge of or access to confidential information that was not otherwise publicly known. Moreover, that the opportunity in question was a unique opportunity or benefit and one that would be of a direct financial benefit to the individual. If the employer is able to demonstrate these elements, they may be able to prove that the individual was unjustly enriched by the acquisition of the opportunity.

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What is the scope of the tort of appropriation of corporate opportunity?

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