Conspiracy is an economic tort involving an agreement between two or more parties to act together in a way that causes harm to another person. Liability usually arises where unlawful means are used or where the primary purpose of the agreement is to injure the claimant. The tort focuses on coordinated wrongdoing rather than isolated acts.
Conspiracy claims often appear in commercial disputes, labour conflicts, or cases involving organised interference with business interests. There are two main forms: unlawful means conspiracy, where the parties use illegal conduct to cause harm, and lawful means conspiracy, where otherwise lawful actions are carried out mainly to injure the claimant. In Crofter Hand Woven Harris Tweed Co Ltd v Veitch (1942), the House of Lords examined whether trade union activity amounted to conspiracy and stressed the importance of the defendants’ purpose and justification. Courts generally require proof of an agreement, intention to cause harm, and resulting damage to the claimant. Mere parallel conduct or competitive behaviour is not enough. Because conspiracy can extend liability across multiple defendants, it is particularly significant in business litigation where collective action causes economic loss.
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