Understanding Business Tort Claims in Georgia

If your business in Georgia suffers financial or reputational harm due to the actions or words of another party, or if another party accuses your business of causing financial or reputational harm, you’ll need to have an Atlanta business tort attorney advising and representing you.

Business disputes can be exceedingly costly and time-consuming. The longer a business dispute lasts, the more time and resources you’ll spend on it. From the beginning of any business dispute, you should be seeking to settle it quickly with the assistance of an Atlanta business tort lawyer.

What Are Torts?

Torts are civil wrongs, other than breaches of contract, that cause injury or harm to another party or their property. The party causing the injury or harm may be found liable and ordered by a court to pay damages to compensate the injured party, deter harmful behavior, and provide justice.

Unlike a breach of contract, which is a failure to adhere to a specific agreement, a business tort typically involves alleged financial or reputational harm intentionally committed by another party.

What Conduct Can Trigger a Business Tort Claim?

Under Georgia law, several types of misconduct are categorized as business torts. Breaches of fiduciary duty are business torts that happen when persons in a position of trust (such as a business partner, director, or officer) act in their own interests rather than the interests of the company they represent.

Business torts include actions that violate Georgia’s Fair Business Practices Act, such as passing off goods as those of another or causing confusion regarding the source of a product. Other business torts in Georgia include:

1. Tortious interference can occur when a third party intentionally disrupts another party’s business relationship. Examples include persuading a party to breach a contract or preventing a party from fulfilling its contractual duties.
2. Fraud and misrepresentation: When one party intentionally provides false information or conceals the truth to induce another party to enter a transaction, leading to financial loss.
3. Trade libel and disparagement: This is a form of defamation specifically targeting a business’s products or services. It involves publishing false statements that harm the business’s market reputation.
4. Theft of trade secrets or other intellectual properties: The unauthorized use or disclosure of a company’s proprietary and confidential information, such as client lists or manufacturing processes.

What is a Tortfeasor?

A “tortfeasor” is the party assigned liability for a civil offense that injures another party. If a tortfeasor is deemed liable in a Georgia civil court, the tortfeasor (the “defendant”) must compensate the wronged or injured party (the “plaintiff”) for damages and losses.

The amount a plaintiff can recover depends on the type and extent of the damage or injury. When a business has been injured or suffers losses, the tortfeasor may be ordered to compensate the plaintiff for lost earnings and lost earnings opportunities.

How Are Business Tort Claims Resolved?

Business tort claims in Georgia are settled the same way all other civil claims are settled, through negotiation if possible and through litigation if necessary.

Most business tort claims are settled in private, out-of-court negotiations. If a defendant denies liability or does not offer an acceptable settlement, an Atlanta business tort attorney will take the case to trial. At trial, jurors first decide whether a defendant is liable.

When defendants are found liable, damage amounts are determined in a second phase of the trial. Business tort trials can proceed to a third phase if punitive damages are sought, but punitive damage awards are rare. To recover punitive damages, a plaintiff must prove that the defendant acted intentionally with “oppression, fraud, or malice.”

Business Tort Remedies

In Georgia, the remedy for a business tort claim may be “legal” or “equitable.” Legal remedies are typically in the form of monetary damages, while equitable remedies often involve some form of injunction.

The monetary damages available in a business tort claim include the damages directly suffered by the plaintiff, such as lost business opportunities, lost profits, or reputational damage, as well as lawyers’ fees, court costs, and, in rare cases, punitive damages.

Plaintiffs may request injunctions from the court that order a defendant to refrain from a particular action. Injunctions can also require defendants to take actions such as publishing a correction or retraction. When preliminary or emergency injunctions are granted, plaintiffs don’t have to wait for a settlement or trial to obtain relief.

What is a Business Tort Lawyer’s Role?

A business tort lawyer acts as a protector of a company’s assets and intellectual property. The business tort lawyer’s role typically includes:

1. Investigation and evidence gathering: An Atlanta business tort lawyer audits financial records, emails, and internal documents to prove malice or intent. Proof of malice or intent is usually required for tort claims, but not for standard contract disputes.
2. Seeking injunctions: If a competitor is actively stealing your company’s trade secrets or spreading lies about your business, a business tort lawyer can petition the court for an emergency injunction to stop the behavior immediately while a lawsuit proceeds.
3. Litigation and compliance: A business tort lawyer ensures that a case complies with Georgia state laws governing the apportionment of fault and the bifurcation (separation) of the liability and damages phases of a trial.
4. Calculating damages: Business tort lawyers determine not only immediate losses, but also “proximate cause” damages such as loss of market share, lost future profits, and damage to brand equity.

If you are not sure whether or not you have a business tort claim, schedule a consultation promptly with a Georgia business tort attorney at Mones Law.

Bring Your Business Tort Claim to Mones Law

Mones Law works with Atlanta-area businesses to resolve business tort claims. We negotiate vigorously and effectively to achieve your goals and assist you in meeting your legal needs. If a private resolution of your business tort claim is not possible, we will advocate aggressively on your behalf in court.

If you need legal representation or assistance regarding a business tort, or if you’re ready to begin the business tort claim process, call the Atlanta offices of Mones Law at 678-616-2647, and let one of our lawyers advise you and work for the resolution you need.