Economic Torts, Defamation

1
Economic Torts,Defamation Unjust Enrichment
2
Fraud - Elements

• Misrepresentation of material fact
• No duty to disclose
• Exceptions
• Scienter
• Intend induce reliance
• Causation
• Justifiable reliance
• Damages

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Fraud Alternate Remedies

• Benefit of Bargain (BoB)
• Plaintiff gets in cash the equivalent of what he
  would have received if ________ _____________.

• Out of Pocket (OoP)
• Plaintiff gets in cash the difference in value
  between ___________ _________ and what he
  _______________.
• Often the same as BoB
• Can also include pure reliance-type expenditures
  or losses.

4
Fraud Damage Hypos

• Plaintiff is promised a car worth 20,000, and is
  delivered one worth 18,000.
• Benefit of Bargain?
• Out of Pockets?

• Plaintiff spends 500 surveying land supposedly
  worth 1m, but finds seller misrepresented and so
  refuses to sign contract.
• BoB?
• OoP?

5
Brown (Handout 1)

• Courts should deny BoB only when costs of repairs
  is a _________ of ________________.
• Where have we seen a similar concept before?

• Facts?
• BoB?
• OoP?
• Why is what she got less than BoB or OoP?

6
Prokopeas (Handout 2)

• Facts?
• BoB?
• OoP?

• What defense raised?
• SoF precludes fraud plaintiff from recovering
  ________ _________________ that cannot otherwise
  be recovered.
• So, what did plaintiff do?

7
552 Neg Misrep Elements

• A defendant who (1) in the course of his
  _______________ or any other ________ in which
  defendant has a _____________ (2) supplies ______
  information (3) for the guidance of others in
  ________________ is liable for ____________
  losses suffered by those who ________________
  rely on the information if defendant fails to
  exercise ________________ in communicating the
  information, but only if he intended or knew the
  information would be supplied to the plaintiff.

8
552B Damages

• Those necessary to compensate the plaintiff for
  the ___________________ of which the
  misrepresentation is the _____.
• BoB?
• OoP?
• Why that rule?
• BDO (Handout 5)

9
552 Hypos

• Plaintiff has a 100k job and leaves it for a
  125k job and claims 552.
• BoB?
• OoP?

• Plaintiff pays 100k for a house that is
  misrepresented by house inspector. Brings 552
  claim. As sold, worth only 80k.
• BoB?
• OoP?

10
Defamation Reputational Torts

• Libel
• Slander

• Plaintiff must show
• (1) At least one _____ and ________ statement of
  ________
• (2) regarding ______
• (3) ______ to a ______ by the _______
• (4) resulting in ______ to plaintiff
• - The key remedial issue.

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Need Proof of Special Damage?

• If Per Se, plaintiff ___ _____ allege or
  prove special damages.
• (1)
• (2)
• (3)
• (4)
• (5)
• - Applies when trait is __________ with the
  proper conduct of the trade, not just when it is
  a ______ reflection on the plaintiffs ___________

• All others Plaintiff must plead and prove
  _____ damages by proving the loss of something of
  ________ value which must ______________ from the
  ___________ __________________ and not from the
  __________________.

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Absolute Qualified Defenses

• Truth
• Absolute Privilege
• (1)
• (2)
• (3)
• (4)
• (5)

• Qualified Privilege (QP)
• (1)
• (2)
• (3)
• (4)

13
Overcoming QPs

• Where QP is proven by defendant, plaintiff can
  overcome it by proving statement was made either
  _____________ or with ____________ disregard for
  the truth of the matter asserted.

14
Nicholls (Handout 7)

• Facts?
• Per se or not?

• What QP is argued here?
• Why is that a QP?
• Result?

15
Election of Remedies

• Post-trial the one recovery or one satisfaction
  rule.

• Pre-trial (and pre-suit)
• Fields (Handout 9)
• Facts?
• When a plaintiff is induced by fraud to contract,
  can elect either to
• (1)
• (2)

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Unjust Enrichment
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(A) Unjust Enrichment Concept

• Restitution is civil liability based on unjust
  enrichment the defendant has something that
  rightly belongs to plaintiff, which should be
  taken from plaintiff and given to defendant.
• Sometimes its an additional remedy to a contract
  or tort claim.
• Sometimes its the only remedy.
• Mistaken conference of benefit

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Overview Historical Origins

• Law
• Legal action for breach of express K was
  assumpsit.
• Where no express K, courts implied a K said
  defendant was unjustly enriched ordered
  restitution
• The suit is in quasi-contract b/c there isnt
  one.
• Quantum Meruit allows recovery of reasonable
  value of services rendered/goods delivered where
  (1) no express contract and (2) w/out restitution
  defendant would be unjustly enriched.
• Elements (806 n. 7).
• Equity
• Constructive Trusts where no express trust, one
  is implied where w/out restitution defendant
  would be unjustly enriched.
• Defendant is trustee for the plaintiff of the
  value unjustly received.
• Equitable Liens

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Three Basic Issues

• Was Defendant Enriched?
• Was the Enrichment Unjust?
• (a) Even innocent defendants can be unjustly
  enriched.
• (3) How do you Measure the Amount of
  Enrichment?
• (a) Focus is on the measurement of the benefit
  that the defendant has, with two basic issues
• Give it back
• Give me the profits you made, too
• Even if the profit made with plaintiffs
  money/goods is acquired by the defendants
  brilliance, the plaintiff can get those profits
  disgorged.

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Model Case (797)

• Basic Facts?
• Likely measure of restitutionary damages?

• Why isnt the harm to the crane owner the right
  measure of damages?
• If the crane owner suffered no damages, could he
  still sue?

21
Pyeatte (798)

• Elements for restitution
• (1)
• Any limits? (See 804 n. 3 805 n. 6.)
• (2)
• See slide 13.
• (3)
• See slide 14.

• Facts?
• K between H W?
• Written?
• Oral?
• What happened on appeal on this issue?
• Implied in fact?
• What happened on appeal to this issue?
• Implied in law?
• Does intent of parties matter?

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Element (2)

• Restitution for services rendered available under
  two kinds of non-Ks
• (a)
• What level of proof is needed?
• (b)
• Intent control?
• What is test?
• E.g.?

• But no restitution if
• (a)
• (b)
• (c)
• (d)
• Which kind of non-K was found here to support
  restitution?

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Element (3)

• In dissolution proceedings, can a spouse normally
  get restitution for having performed usual
  incidental services?
• Exception here is for when?

• Two fact patterns
• (a)
• Rule
• Why?
• (b)
• Rule
• Why?
• Measure

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Pyeatte Amount

• What is the amount that a successful plaintiff
  gets (803)?
• Is it measured by the amount paid by the spouse
  to support the other?
• Is this a get back what I gave you award, or a
  I want the benefit you got from using what I
  gave you award?
• Is that right? (Compare to the Crane hypo above)