Why Business Defamation Cases are Different Than Individual Defamation Cases

If you have a business, and someone is slandering or libeling your business (collectively, called defamation), you have a right to sue, just like an individual would if he or she were defamed. But as a business that is a victim of defamation, you have a hurdle that can make business defamation cases a bit more difficult.

What is Defamation?

Defamation is when someone makes a false statement of purported fact (that is, not an opinion) that is heard or read by others (legally, called publication). And, there must be damages. That’s where a business who is a victim of defamation may run into problems.

Assumed Per Se Damages

With individuals, many forms of defamation are per se defamation. That means that the victim doesn’t actually need to show or prove that they suffered some injury or financial loss as a result of the defamation, and victims don’t have to show why, or to what extent they have suffered any losses—the damages are assumed.

So, imagine someone said that you were promiscuous, or that you cheated on your spouse, or that you had an embarrassing disease. All of these would be harmful, damaging, embarrassing, and cause you emotional trauma. But could you prove actual, out of pocket losses? Probably not. That’s OK though – if you’re an individual, you don’t have to prove losses or damages because they’re assumed.

But businesses that are victims of defamation don’t get that assumption. They do have to prove damages or losses, and that isn’t always so easy.

Proving Business Damages

So if a business has to prove actual tangible losses or damages as a result of defamation, how would it go about doing that?

Revenue – The most obvious way is to show that a business has reduced customers, sales, revenue, or other measures of business, before and after the defamation.

Damage to Reputation – This can often be demonstrated by surveys or market analysis. But with social media, it may also be shown by comments made to a business’ page or site or posts. As more and more strangers mention the defamatory statement, it can be proof that a business reputation has been damaged.

Contracts and Business Relationships – Have businesses that once did business with you, or entered into contracts with you, now, post-defamation, suddenly disappeared or gone elsewhere or severed their business ties with you? Perhaps you may have had investors that have now declined to invest, or joint venturers who now have no desire to work with you. All of this could be evidence of damages from a defamatory statement.

Some of this evidence is circumstantial, and some you, as the business owner, can even testify about. Others, will require third parties to testify, or expert witnesses to analyze business profits or to determine loss of your business’ reputation.

Business defamation cases can be very complex cases. Fight back if your business has been damaged.  Let the West Palm Beach commercial litigation lawyers at Pike & Lustig help you with your defamation case.