24 Questions
What is the main difference between malicious falsehood and defamation?
Malicious falsehood protects the financial interests of the claimant, whereas defamation protects the business reputation of the claimant.
What is the primary requirement for bringing a claim for malicious falsehood?
The defendant made a false statement concerning the claimant or his or her property.
What is the term used to describe the intentional and improper interference with the economic interests of another, resulting in losses?
Economic torts, also referred to as business torts.
What is the result of a successful malicious falsehood claim?
The claimant can recover for special damages, such as loss of business.
In what case can the distinction between malicious falsehood and defamation be illustrated?
The case of Ratcliffe v. Evans.
What is the term used to describe the type of losses that can result from economic torts?
Losses can include loss of business opportunities, clients, relations, and ideas.
What is the third requirement for bringing a claim for malicious falsehood?
The false statement was made to some person other than the claimant.
What is the malicious intention required for a claim of malicious falsehood?
The defendant made the false statement with malicious intent.
What is the primary difference between defamation and malicious falsehood in terms of proving the statement?
In defamation, the statement is presumed to be false, whereas in malicious falsehood, the statement must be proved to be false.
What must the claimant show in addition to the statement being false in a malicious falsehood claim?
The claimant must show that the statement was made maliciously, with knowledge of its falsity or recklessness as to its truth.
What is the defence to a malicious falsehood claim?
The defence is that the statement was made in good faith.
What are the advantages of suing for malicious falsehood over defamation?
The claimant does not have to show an attack on their business reputation, and the tort may prove useful where other causes of action fail.
What are the necessary requirements for liability in the tort of deceit?
The defendant makes a false representation, knows it is false or is reckless, intends the claimant to act on it, the claimant acts on it, and suffers loss.
What is the key difference between the tort of deceit and malicious falsehood?
The tort of deceit requires an intention to induce the claimant to act, whereas malicious falsehood does not.
What is the significance of the case of Khodaparast v Shad in relation to malicious falsehood?
Damages may extend to distress and injury to feelings consequential on financial loss.
What is the significance of the case of Eco 3 Capital Ltd v Ludsin Overseas Ltd in relation to the tort of deceit?
The court held that the tort of deceit has the necessary requirements of false representation, knowledge or recklessness, intention to induce action, and consequential loss.
What form can a false statement of fact take in the context of deceit?
Representations, promises, other statements of intention, opinions, or misstatements of law.
Can a person be liable for deceit if they make an untrue statement of opinion?
Yes, if the person knows the statement is untrue and the other party is about to engage in a business dealing with the subject of the opinion.
What is required for a statement to be considered deceitful?
The statement must be made without belief in its truth, with the intention that the claimant will act upon it, and the claimant must rely on the statement and suffer damage as a result.
Is it necessary for the defendant to intend to cause damage to the claimant in order to be liable for deceit?
No, it is enough that the claimant was intended to act on the statement and did act on it in the manner contemplated.
What must the claimant demonstrate in order to prove deceit?
The claimant must demonstrate that they have suffered some damage due to the deceit.
Can the claimant's failure to take steps to verify the truth of the statement be used as a defense against deceit?
No, if the claimant did rely on the defendant's statement, it is no defense that they acted incautiously and failed to take steps to verify its truth.
What is the significance of the case of West London Commercial Bank v Kitson (1884) in the context of deceit?
The case establishes that misstatements of law can be deceit, provided that the parties are not on equal footing with respect to knowledge of the law or general intelligence.
What is the consequence for a person who makes a true statement that becomes false to their knowledge before it is acted upon?
They should be liable in deceit if they do not correct it.
Study Notes
Malicious Falsehood
- Malicious falsehood protects the financial interests of the claimant, distinct from defamation which protects the business reputation.
- To bring a claim for malicious falsehood, the claimant must prove:
- The defendant made a false statement concerning the claimant or their property.
- The statement was made maliciously.
- The statement was made to someone other than the claimant.
- As a result, the claimant suffered economic loss.
Tort of Deceit
- The defendant is liable if they knowingly or recklessly make a false statement to the claimant with the intent that it shall be acted upon, and the claimant does act upon it, resulting in damage.
- The necessary requirements for the tort of deceit are:
- The defendant makes a false representation to the claimant.
- The defendant knows the representation is false or is reckless as to whether it is true or false.
- The defendant intends that the claimant should act in reliance on it.
- The claimant does act in reliance on the representation and suffers loss.
Economic Torts
- Economic torts refer to common law principles relating to unfair business practices that result in intentional and improper interference with the economic interests of another.
- Economic torts can result in various losses, including:
- Loss of business opportunities.
- Loss of business clients.
- Damage to or loss of business relations.
- Loss of business ideas or protected works.
Distinctions
- Malicious falsehood protects the financial interests of the claimant, while defamation protects the business reputation.
- The tort of deceit requires the defendant to have made a statement with knowledge of its falsity or recklessness as to its truth.
- In malicious falsehood, the claimant must show that the defendant made a false statement to a third party, whereas in defamation, the claimant must show that the defendant made a statement to anyone.
Key Cases
- Khodaparast v Shad [1 All ER 545]
- Kaye v Robertson [CA 16 MAR 1990]
- Eco 3 Capital Ltd v Ludsin Overseas Ltd [EWCA Civ 413]
- Ratcliffe v Evans [2 Q.B. 524]
- Derry v Peek [(1889) 14 App.Cas.337]
- Polhill v Walter [(1832) 3 B & Ad 114]
- Downs v Chappell [(1997) 1 WLR 426]
This quiz covers the legal aspects of libel and defamation, including the burden of proof, malicious intent, and defences. It also touches on damages and consequential financial loss.
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