What to do if an employee sues for defamation
Defamation occurs when a false statement leads to financial loss. Spoken defamatory statements are referred to as slander. Written defamatory statements are termed libel.
In the workforce, speaking about an employer, a coworker, or work in general is secondhand to most people. But, there’s a difference between casual conversation and malicious intent.
Here’s an example: John Doe has recently been let go from his position in a tech company. He then goes online to a platform like LinkedIn and writes an in-depth review of his former employer. He makes bold claims about toxic workplace culture, illegal business or tech practices, and how management fosters this behavior. He speaks about these issues in person too, maybe at a networking event.
But, there’s one issue; it’s all false. A supposed insider spreading negative rumors about their former employer? This is sure to change some people’s minds about that company. What can a business do?
Both individuals and businesses can pursue defamation lawsuits, though the requirements for proving the claim differ slightly. In cases of personal defamation, the plaintiff may only need to demonstrate that a false statement has harmed their reputation or social standing. On the other hand, a business alleging defamation typically needs to prove that the false statement has had a direct impact on their financial health, such as resulting in lost business or negatively affecting their creditworthiness.
Understanding the Impact of Defamation on Your Business
A business’s reputation is its cornerstone. A tarnished reputation due to defamation can lead to significant revenue losses and potentially endanger the company’s future. Businesses must be aware of their legal rights against false statements made by competitors, disgruntled employees, or customers. Seeking legal guidance and filing a defamation suit may be within a business’ legal options.
Navigating Defamation Law: Key Elements for Business Owners
Defamation law is primarily governed by state law and supplemented by some federal laws. To file a libel suit, a business must establish:
Falsity of the Statement:
The accused statement must be untrue.
Publication to a Third Party:
The statement should have been shared publicly.
Damage to Business Reputation:
The statement must have harmed the business’s standing in the community.
For instance, a negative but factual review is not defamation. Truth is a defense against defamation claims. Therefore, it’s crucial to determine if a statement’s falsehood can be objectively proven.
Substantial Truth Doctrine in Defamation Cases
Not all untrue statements qualify as defamatory. Under the “substantial truth” doctrine, a statement is defensible if its overall gist is true, despite minor inaccuracies. This principle highlights the complexity of defamation cases and underscores the need for expert legal advice. It applies for spoken defamation and to libel.
Proving Publication and Damages in Defamation Cases
Proving that a defamatory statement was published is typically straightforward. However, demonstrating the resulting damage to the business’s reputation is more challenging. Evidence may include loss of customers, reduced revenue, or in some states, presumed damages for libel per se.
The Importance of Timely Legal Action
Given the complexity of business defamation cases and the typically short statute of limitations (e.g., one year in Illinois), it’s vital to commence legal proceedings promptly. Defamation law is nuanced and constantly evolving. The success of a defamation claim often hinges on how the case is presented. It’s advisable to seek assistance from a knowledgeable and skilled defamation attorney who can navigate these complexities.
If your business faces potential defamation, it’s crucial to act swiftly and knowledgeably. Understanding these legal nuances can safeguard your business’s reputation and future. For more detailed guidance and to discuss your specific situation, give our business litigation attorneys a call.
