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Business Torts in San Antonio, TX - Navigating Fraud and Unfair Competition Claims

Texas strives to foster entrepreneurship, but Bexar County small businesses—which make up over a third of the San Antonio workforce—still face threats from unethical competitors. Although many torts (or wrongful acts) cause personal injury, a lawyer can also seek justice for illegal acts that harm a business.

For example, other companies might break laws that protect fair market competition by committing fraud. If your south Texas business has suffered from someone else’s unlawful advantage, the San Antonio commercial litigation attorneys at Carabin Shaw can help.

Defining the Consequences of Business Torts

Business torts are also known as economic torts because company injury is financial. However, business tort damages in Texas are difficult to calculate, and experts must use accepted systems of analysis for complicated factors such as:

  • Expected profit losses
  • Erosion of reputation
  • Value of trade secrets
  • Expenses for “corrective advertising” to repair lost reputation
  • Punitive damages to punish malicious acts, such as certain cases of fraud

In addition, your attorney may help you seek an injunction, which orders the defendant to stop doing something that harms your company.

Understanding Unfair Competition in Texas

The Federal Trade Commission Act of 1914 established nationwide protections against unfair competition, or tactics that some businesses use to gain market advantages. Your San Antonio business torts attorneys should be familiar with all federal, state, and common laws that hold companies accountable for these dishonest practices.

Types of Unfair Competition Claims

The umbrella term “unfair competition” can refer to several different torts against your business. Consider the following examples:

  • An entity passes off their product as yours, profiting from customer confusion.
  • Your trade secrets are stolen and used by another business.
  • False statements hurt your business reputation.
  • Another business uses markers of your business, also known as trademark infringement.
Famous Case of Unfair Competition in Texas

A Texas trademark case that reached the Supreme Court in 1992 involves the Tex-Mex chain Taco Cabana, which began in San Antonio. The court upheld a ruling that Two Pesos, a competitor, intentionally copied Taco Cabana’s successful design. As a result, the knockoff gained unfair advantage in markets where Taco Cabana would naturally expand.

The Court ordered the restaurant to make changes and pay over three million dollars in damages. Eventually, Two Pesos sold all of its assets to Taco Cabana.

Forming Valid Business Tort Claims

Because no single law covers all business torts, our team at Carabin Shaw builds successful cases based on what we know we can prove. Sometimes, fraud is clearly indicated; other times, different approaches better serve your case.

Components of Fraud-Based Tort Claims

Fraud involves deliberate misrepresentation of facts. Employees can commit occupational fraud against employers, but businesses also harm other businesses through fraud. Forming contracts or stealing trade secrets by misrepresenting facts are forms of fraudulent business practices in San Antonio Texas.

To prove fraud, your legal team must show:

  • The company made a false representation.
  • They knew the statement was false or recklessly made it without verification.
  • They intended to deceive you.
  • Your business suffered damages because you relied on their representation.
Role of Fraud in Unfair Competition

Unfair competition torts may not involve fraud but often do. However, each tort has its own test that your lawyers help you meet. Steps for handling defamation, for instance, differ from those for addressing copyright infringement.

Protecting Your Business With a Free Initial Consultation

When you sue for unfair competition or fraud, you deserve the expertise of attorneys who know the kinds of arguments and evidence necessary to make your case. At Carabin Shaw, we consistently meet the unique needs of each case, as evidenced by Carabin Shaw reviews.

By calling the toll-free number 800-862-1260, you can speak with our San Antonio staff 24/7 in English or Spanish. Because we offer our services on a contingency-fee basis, you receive our legal support for your business with no initial or exploitative fees.

For more information:

Visits with the Attorney are by appointment only. Main office San Antonio, Texas.

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