Business doesn’t always run on fair play. Competitors poach clients through backdoor deals. Contracts get broken with a smile and a handshake. False rumors sink partnerships before the ink is dry. If you’ve been on the receiving end of this kind of sabotage, you’re not alone, and you may have legal recourse.
If you’re in this or a similar situation, you’ve probably asked, “What are business torts?” Numerous types of business torts exist, but the key element they all share is that the defendant committed a civil wrong that caused economic harm to a business. They often arise from misconduct like fraud, misrepresentation, defamation, or unfair interference with contracts or prospective clients.
A business tort claim may be the right move if your business suffered because someone else engaged in unfair practices. At The Vastine Law Firm, PLLC, we help Texas business owners fight against unfair competition, deceitful partners, and other costly wrongdoing. With more than 200 wins and a deep background in litigation and transactional risk prevention, we can assess your position and advise on your best path forward.
What Are Business Torts?
A tort is a civil wrong that causes harm and gives rise to a legal claim for damages. Business torts, also known as economic torts, are a subset of torts focused on financial loss caused by unlawful or unethical conduct in a business setting.
Unlike contract disputes, which involve broken promises, business torts involve wrongful acts that go beyond a breach of agreement. These torts don’t just violate the terms of a deal; they undermine trust, professional reputations, and market relationships. They are rooted in conduct that Texas courts have deemed fundamentally unfair, deceptive, or malicious, and they often occur alongside or instead of traditional contract claims.
What are the Types of Business Torts?
Under Texas common law, developed through judicial decisions rather than a single statute, the most common types of business torts include:
- Tortious interference with contract—wrongfully disrupting an existing agreement between two parties;
- Tortious interference with prospective relations—undermining a potential business opportunity before it materializes;
- Business defamation—spreading false statements that damage a company’s reputation or bottom line;
- Fraud or fraudulent inducement—intentionally misleading a party into signing or acting on a business deal;
- Breach of fiduciary duty—violating the obligation to act in another’s best interest, often in partnership or director-shareholder contexts; and
- Commercial disparagement—publishing false claims about a company’s products, services, or financial health.
Each of these torts has specific legal elements and evidentiary requirements. Claims involving theft of trade secrets may also fall under the Texas Uniform Trade Secrets Act (TUTSA).
What Are Business Tort Examples?
Here are some real-world examples of how these claims play out in courtrooms across Texas:
- Misuse of confidential information. A former employee steals your client list and starts soliciting business, undercutting your pricing. This action may support claims for tortious interference and breach of fiduciary duty.
- False statements harming reputation. A competing company spreads a false rumor that your product contains unsafe chemicals, causing customers to cancel orders. That could form the basis of a defamation or commercial disparagement claim.
- Fraud in business agreements. You sign a joint venture agreement after your new partner lies about their financials and prior litigation history. That may give rise to a fraud or fraudulent inducement claim.
In each of these scenarios, the harm is reputational and financial. A strong legal claim can help you recover lost profits, repair reputational damage, and sometimes obtain punitive damages if the conduct was egregious.
Texas Tort Claims Act Explained
While most business torts involve private disputes, the Texas Tort Claims Act governs when and how to bring a tort claim against a government entity. The Act waives government immunity only in limited circumstances, specifically when the claim involves:
- Property damage, personal injury, or death caused by the negligence of a government employee while operating a motor-driven vehicle or equipment; and
- A condition or use of tangible personal or real property that causes personal injury and death.
For example, suppose a city-owned truck collides with your company vehicle, or a government agency’s negligent maintenance of public property causes injury to one of your employees. In that case, you might have a viable claim under the Tort Claims Act. These cases involve strict notice deadlines, limited damages, and procedural landmines, so getting legal counsel early is essential.
What Should I Do If I Suspect I Have a Business Tort Claim?
If your business is losing money, customers, or reputation due to another party’s wrongdoing, take these steps immediately:
Document everything. Save emails, contracts, messages, and anything that may prove the misconduct or resulting harm.
Avoid retaliation. Don’t confront the other party or make public accusations. It could backfire and complicate your case.
Preserve client relationships. Reach out to impacted clients professionally and reinforce trust while the legal process unfolds.
Contact an experienced business tort attorney. Early legal advice can help preserve your options and strengthen your claim.
Waiting too long may jeopardize your ability to prove damages or meet the statute of limitations.
Talk to an Experienced Texas Business Tort Lawyer at The Vastine Law Firm, PLLC
Business tort lawsuits offer more than just a path to monetary recovery. They send a message: your business won’t tolerate sabotage, theft, or deception. They can also be a key part of a broader litigation strategy. For example, if you’re suing for breach of contract, layering a tortious interference or fraud claim may increase your leverage and expand potential damages.
At The Vastine Law Firm, PLLC, we help clients across Texas understand their options, evaluate their legal footing, and take decisive action. With over 200 cases won and a background in high-stakes commercial litigation and real estate investment, Scott K. Vastine brings the seasoned insight your business needs.
If you need the Texas Tort Claims Act explained or believe you have a business tort claim, we can provide clear guidance and strategic representation to protect your business and support its growth. Schedule your free consultation today and let us help you turn legal disruption into forward momentum.