Generally speaking, businesses and companies cannot rely on the protections provided to individuals in defamation law as it is not considered possible for a business to feel embarrassed, upset, or insulted by false information. However, a business’ reputation is still very important to the viability of the business, and false statements about a business can have very real consequences. If your business has suffered as a result of false statements there are options you can consider.
Injurious Falsehood
Bringing an action for injurious falsehood is similar to the processes involved in defamation but with important differences. Where defamation is concerned with the potential of false statements to harm an individual’s reputation, injurious falsehood claims are about actual damage suffered by a business as a result of false statements. There are additional requirements that need to be satisfied for a plaintiff to be successful, compared to the requirements for defamation.
You may have a claim if you can show:
- That a statement was published (made) about your business to another person or business. “Published” is a broadly interpreted term and can include: written or oral statements, images or videos, gestures, signs, private conversations or mass communication. Further, the statement does not need to be direct and explicit; implied statements or statements that have a particular meaning depending on the context can also be considered.
- The statement about a person’s business or goods is false. You will need to be able to actually show that the content is demonstrably untrue.
- That there was malice on behalf of the publisher. Put simply, this means that it must be shown that the publisher intended to harm or disadvantage the business.
- That actual damage was suffered as a result of the statements. For example, a sudden drop in bookings to a restaurant, cancelled contracts, fines, or penalties.
In these types of claims, it is the responsibility of the business making the application to satisfy the courts that the above elements are established. Although, the elements set out seem clear, the evidence isn’t always as certain. We can help you determine whether you have a viable claim for injurious falsehood.
Tortious Interference
Sometimes false statements about a business are targeted to specifically obstruct contractual relations. For example, a person or business might claim that a competitor’s business is incompetent or dishonest in order to entice or coerce the competitor’s clients to cancel their contracts. This is an example of tortious interference, which refers to actions by a person intentionally taken to interfere with a contract they are not a party to.
Generally, the elements that must be proven are:
- That there is actual interference with a contract. This isn’t limited to convincing someone to breach their contract but includes hindering or obstructing a third party’s ability to perform their contractual obligations.
- The interference must be deliberate; the person must know of, or ought to have known of, the contractual relationship.
- The interference must be direct.
These types of claims are difficult but are an option to consider if false statements have affected your business contracts. We can help you determine the viability of any such claim.