What Is A Civil Conspiracy Claim?

Civil conspiracy is an agreement between two or more parties to commit a wrongful act or use wrongful means to achieve an objective, resulting in harm to the Plaintiff.

Key elements:

• An agreement between defendants (doesn’t need to be formal or written)
• To commit an unlawful act or use unlawful means
• Actual harm to the Plaintiff resulting from the conspiracy

Conspiracy to Commit an Unlawful Act

Defendants agree to do something illegal or tortious. The underlying act is itself wrongful: fraud, assault, defamation, or breach of contract, for example. All conspirators may be liable even if only one performed the actual wrongful act.

Example: Two business competitors agree to spread false information about your company to steal customers. Both are liable for defamation through conspiracy, even if only one actually made the false statements.

Conspiracy Using Unlawful Means (Predominant Purpose Test)

Defendants agree to use unlawful methods to harm you, and harming you is their predominant purpose. The objective may be legitimate, but the means are improper, and the primary goal is injuring you.

Example: Competitors coordinate to breach their contracts with suppliers specifically to prevent you from obtaining materials, intending to drive you out of business.

This second type is harder to prove because you must show harming you was the predominant purpose, not just a side effect of legitimate business competition.

To succeed in a civil conspiracy claim, you must establish several elements.

Agreement Between Defendants

Two or more people agreed to the wrongful conduct. The agreement can be express or implied from their coordinated actions. It doesn’t need to be written or formal: conduct showing coordination is sufficient.

Unlawful Conduct or Means

For conspiracy to commit unlawful acts, the agreed conduct itself must be illegal or tortious. For conspiracy using unlawful means, the methods employed must be improper, and harming you must be the predominant purpose.

Overt Acts in Furtherance

The conspirators took actual steps implementing their agreement. Mere agreement without action isn’t enough: there must be conduct furthering the conspiracy.

Harm to You

You suffered actual damages from the conspiracy. This includes financial losses, property damage, reputational harm, or other quantifiable injuries.

Causation

The conspiracy directly caused your harm. You must connect the coordinated conduct to your specific losses.

Business Competition Gone Wrong

Competitors coordinate to drive you from the market through illegal means like price-fixing schemes, agreements to boycott suppliers or customers, coordinated defamation campaigns, or stealing trade secrets jointly.

Breach of Fiduciary Duty

Corporate insiders work together to harm the company or shareholders through directors conspiring to divert opportunities, partners coordinating to steal from the partnership, or employees conspiring with outsiders to defraud the employer.

Interference with Contracts

Multiple parties coordinate to interfere with your business relationships by agreeing to induce breach of your contracts, conspiring to prevent you from performing obligations, or coordinating to steal customers or employees.

Civil conspiracy claims serve important purposes beyond just suing for the underlying wrong.

Joint and Several Liability

All conspirators are liable for the full damages, even if only one performed the wrongful act. This means you can collect the entire judgment from any conspirator with assets, not just the one who physically committed the wrong.

Punitive Damages

Coordinated wrongful conduct may justify punitive damages to punish and deter, resulting in awards beyond compensatory damages.

The hardest part of conspiracy claims is proving the agreement existed. Conspirators rarely document their plans.

Direct evidence includes written communications showing coordination, recorded conversations revealing the plan, or testimony from co-conspirators who cooperate.

Circumstantial evidence often proves conspiracy through parallel conduct: defendants acting in coordinated ways, suspicious timing of actions occurring simultaneously, communications between defendants before wrongful acts, defendants sharing common interests in harming you, or similar methods suggesting coordination.

Courts infer agreement from circumstances showing parties acted in concert toward a common goal.

Before Bringing Conspiracy Claims

Assess whether you have evidence of coordination between defendants. Determine if simpler claims against individual defendants would suffice. Consider that conspiracy claims complicate litigation and increase costs. Evaluate whether the underlying wrong is clear: conspiracy adds complexity.

If Facing Conspiracy Allegations

Review whether your conduct could appear coordinated with others. Assess communications that might suggest agreement. Determine whether actions were independent business decisions. Consider whether lawful competition is being characterized as conspiracy. Get legal advice immediately, as conspiracy claims carry serious liability.

Discovery Is Crucial

Conspiracy cases often turn on discovery: obtaining emails, texts, and documents showing coordination. Depositions reveal whether defendants coordinated their stories. Circumstantial evidence builds a picture of coordination.

Thorough investigation and discovery are essential for proving or defending conspiracy claims.

Civil conspiracy claims are complex and evidence-intensive. They work best when you can demonstrate clear coordination between multiple parties who worked together to harm you through unlawful means.

Pinto Shekib LLP handles complex civil litigation. Contact us at 416.901.9984 or info@pintoshekib.ca.