From: Neil Foster <Neil.Foster@newcastle.edu.au>
To: Jason Neyers <jneyers@uwo.ca>
CC: obligations@uwo.ca
Date: 19/04/2010 23:55:04 UTC
Subject: Re: ODG: Competition vs Extortion

Dear Jason;
My quick reaction is that it all depends on what you mean by "extortion". The tort of "causing loss by unlawful means" as expounded in ODG v Allan covers threats to do unlawful stuff, so I assume you are referring to pressure exerted (by one person to avoid the complications of conspiracy torts) by lawful means. Do you mean the classical "blackmail" case- "I will reveal details of your sexual indiscretions unless you pay me money"?
Actually since the development of the action for breach of confidence relating to personal privacy- Hello, Campbell, etc- one might argue that what is being proposed here would be "unlawful" in some civil sense, even if not technically "tortious". But let us assume that the person making the threat is proposing to do something lawful. For a large customer to say to a supplier "I will withdraw my custom unless you change certain features of the product" doesn't sound like extortion.
Perhaps it would help if you gave an example of the type of extortion you are thinking of, when it is "always a wrong".
Regards
Neil

On 20/04/2010, at 3:22 AM, Jason Neyers wrote:

Colleagues:

I was wondering if anyone had a view on the following. I am trying to pinpoint the difference on a conceptual level between competition as envisaged in a case like Mogul Steamships and extortion/lawful act duress.  In a case like Mogul the defendant injures someone else financially in order to bring about a profit for himself and the court concludes that so long as the defendant's ultimate gain is primary goal then there is no liability. In an extortion case, the defendant threatens to injure someone else financially in order to bring about a profit for himself yet this is always a wrong even if the defendant's primary goal is his or her gain.  What explains the difference between the two? Does anyone have any thoughts?

Sincerely,

--
Jason Neyers
Associate Professor of Law
Faculty of Law
University of Western Ontario
N6A 3K7
(519) 661-2111 x. 88435

 Neil Foster
Senior Lecturer, LLB Program Convenor,
Newcastle Law School Faculty of Business & Law
MC158, McMullin Building
University of Newcastle Callaghan NSW 2308 AUSTRALIA 
ph 02 4921 7430 fax 02 4921 6931