Commercial & Economic Torts

Business Torts in California.

Fraud, breach of fiduciary duty, tortious interference, trade-secret theft, and Unfair Competition Law claims under California state and federal law.

3 yr
CUTSA Trade Secret SOL
4 yr
UCL / Bus. & Prof. § 17208
3 yr
Fraud SOL (Civ. Code § 338)
2 yr
Fiduciary Breach SOL

California Business Torts & Commercial Fraud


What This Means For You — Plain-Language Overview

When a competitor lies to your customers, a former executive walks out the door with your client list, a counterparty signs a contract it never intended to perform, or a partner siphons money from a joint venture, California gives you more than a contract claim. The state's "business tort" toolkit — common-law fraud, tortious interference, trade-secret misappropriation, breach of fiduciary duty, conversion, and the Unfair Competition Law — can transform a routine breach into a case for compensatory damages, punitive damages, restitution, injunctive relief, and attorney's fees.

But each of these claims comes with traps. Promissory-fraud claims require proof that the promisor never intended to perform when the contract was signed — a high bar. Interference claims demand an "independently wrongful act" when a competitor (rather than a contract counterparty) is the target. Trade-secret claims are broadly preempted by the California Uniform Trade Secrets Act, meaning related conversion or unfair-competition theories may be wiped out. UCL claims look powerful but cap recovery at restitution and injunction — no damages, no jury. And the economic-loss rule can collapse a fraud claim into a contract claim unless you fit within the narrow Robinson Helicopter carve-out.

This memo walks through each cause of action — the elements, the controlling cases, the pleading hazards, and the remedies. The goal is to help you (a) recognize when you have a real claim worth filing, (b) understand the proof you will need to develop in discovery, and (c) avoid the procedural and substantive landmines that defeat business-tort cases at demurrer or summary judgment. We close with a practice-pointer checklist, an authorities table, and the standard disclaimer.



Recent Developments

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Related Insights & Key Terms

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