TORTS

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LECTURE ON TORTS

JANUARY 24, 2009


TORTIOUS INTERFERENCE
WITH CONTRACTUAL RELATIONS

Q What is the CONSTITUTIONAL BASIS of Tort Liability for Tortious


interference?

Contract as a property right – (No person shall be deprived of his


property; No law impairing the obligations of contracts shall be passed.

OTHER BASES:

 Solemnity of Contracts
 Integrity & Security of Contractual Relations
 Fulfillment of Contracts
 Freedom of Party to Contract

Q What is tortious interference?

Art. 1314 CC - Any third person who induces another to violate his
contract shall be liable for damages to the other contracting party.

It is preceded by Art 1311 which says that CONTRACT SHALL TAKE


EFFECT BETWEEN THE PARTIES, THEIR ASSIGNS AND HEIRS. (Privity of
Contract)

Q SCOPE OF VIOLATION?

 Existing Contract
 Not to enter into Contract
 Prevent from entering into Contract

Q Can action upon a contract be possible involving a party outside of


the contract?

Yes, under 1314. (Tortious Interference); expanded to Art. 20, and 21


CC.

Art. 20 CC (Willful or Negligent Act contrary to law = QUASI-DELICT)

Q What is the legal consequence against the violator?

INDEMNITY. (No one who suffers material damage cannot be without relief)

Under this Article the act could either be a FELONY or QUASI-DELICT

Art. 21 CC (Willful Acts contrary to morals, good customs or public policy)


2

This is a legal remedy for the “UNTOLD NUMBER OF MORAL WRONGS.”

Ex: Impregnating a woman who, without the promise of marriage by the man,
would not have succumbed to his bestial desire.

Ex: Not showing up in marriage ceremony after all preps and publicity.

Ex: Electric Co. cutting connection w/o prior notice.

Q Does interference in FREE ENTERPRISE or TRADE COMPETITION


amount to TORT?

NO, it is regarded as privileged and constitutive only of “damnum absque


injuria”

Provided:

 The actions are fair and fall within the province of “SOCIALLY
ACCEPTABLE CONDUCT.”

 The business advances for its own, and not to inflict harm on
another.

Q Distinguish Deceit from Tortious Interference?

In deceit, the loss suffered by P is directly induced by D. Does not


presuppose a contract.

In Tortious Interference the loss is suffered by P because a TP induces


the other contractual party to violate the contract. Presupposes a
contract.

Q Who are the usual defendants in TORTIOUS INTERFERENCE?

The VIOLATING CONTRACTUAL PARTY and the TP INDUCER.

Q Elements of tortious interference

1. Valid Contract;

2. Knowledge of the Existence of Contract (by the Inducer);

3. Malice (by the Inducer);

4. Causal Relation between the inducement and the breach;

5. Damage or injury;
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6. Absence of Legal Justification; (ex: Rubio vs. CA 141 SCRA 488
[1986]

 (Unpaid Seller warns another Seller not to proceed with the


sale because the prospective buyer has not paid his
obligations to the Unpaid Seller)

 Giving Advice in GF

 CIBI

Q INDUCEMENT is a misnomer

It is sufficient that a TP meddles in the contractual relations of both


parties, resulting in one party violating the contract.

Q Does INDUCEMENT give rise to tortious liability?

NO. It must result in breach and damage or injury.

Q WHAT USUALLY DEFEATS TORTIOUS INTERFERENCE CASE?

1. Absence of Breach;
2. Lack of privity;
3. Illegal Contract;
4. Contract to Marry

Q EXTENT OF LIABILITY OF:

TORTFEASOR-INDUCER - Not more than what the P could recover from


the party-D.

PARTY INDUCED – GF/BF. If GF only the natural result of breach;


If BF, all damages.

Q Does negligent interference fall within this rule on tortious


interference?

No.

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