How To Handle a Business Defamation Lawsuit and Protect Your Company’s Reputation

Maybe your business’s revenue tapered from a steady stream to a slow trickle. Potential customers do not seem interested in doing business with you. You finally hear from one of your potential customers, “Have  you not seen what people are saying about your business online?”

You click to open your website page, and sure enough, you see a nasty review spouting patently untrue statements about your brand, products, or services. It is horrible, but is it grounds for a business defamation case? How do you go about suing someone for the harm caused to your business?

First, you will have to prove defamation.

Below, Anthony Law Group’s business lawyer in Phoenix, AZ, shares some non-negotiables if you decide to pursue this legal option.

Defamatory Statements Seriously Damage Your Business’s Reputation If You Don’t Act Quickly

Defamation involves so much more than angry customers complaining about your prices or service on social media or online review sites. Defamatory statements are, in essence, lies that can cause a business owner major reputational harm. These statements can come from anyone, from unhappy employees to sly competitors.

Has an angry former employee accused you of stealing from them, even though the story is not true? Maybe a competitor wrote a review with damaging statements to gain an edge over you in business. Just one false statement from former employees or upset customers can have a severe impact on your business and its reputation.

The business implications are far-reaching. Reduced profits to the point that it seems impossible for your business to recover might be a reason to sue for alleged defamation sooner rather than later. If you think further damage might occur, the law can help.

More About Business Defamation Laws

What is business defamation? If we look at the legal definition, defamation is a false statement made with actual malice and intended to cause your business reputational or financial harm.

Two types of defamation dominate:

• Libel includes a false written statement from a person. If the statement were published online, it could be libel. False reviews made by customers about your products or services are an example of libel.
• Slander includes false information spoken to a third party. Slander can also cause your business harm.

It is possible to sue for both libel and slander. However, you must prove to the court that the evidence meets the criteria for business defamation.

The Elements of a Business Defamation Claim

Many consider their professional reputation one of their most valuable assets. If you feel the same and your business reputation has been damaged, you might want to bring a case before the court.

There are five elements you must prove in business defamation lawsuits in Arizona:

1. The defendant made a false statement about your business.
2. The statement was defamatory.
3. The defendant published the statement or said it to a third party.
4. The defendant is at fault for the defamatory statement.
5. Your business suffered damages (tangible losses) because of the statement.

How the legal proceedings go will depend on how you prove each of these elements.

Arizona’s Defamation Pleading Requirements To Demonstrate Actual Malice From a Competitor, Customer, or Former Employee

In business defamation cases, plaintiffs must file a complaint. You will need to write a statement to outline your defamation allegations and damages. Arizona accepts per se and per quod defamation pleadings.

Defamation Per Se

Defamation per se includes obviously damaging statements that make it clear the defendant had the intent to do actual harm to your business’s reputation. For example:

• Statements regarding the sexual promiscuity of a woman.
• Statements accusing the plaintiff of having a contagious or venereal disease.
• Statements accusing you of a crime of moral turpitude.

Defamation per se causes presumed damages (you do not have to prove presumed damages). The judge may also discuss punitive damages. The court awards punitive damages to punish a defendant’s actions.

Defamation Per Quod

Defamation per quod is more involved than defamation per se. You will have to prove reputational harm and actual damages, such as lost profits.

Arizona’s Four Types of Defamation Plaintiffs May Include Disgruntled Employees and Others

Typically, Arizona recognizes four types of defamation plaintiffs:

1. Private plaintiffs: Parties out of the public eye.
2. Public officials: Government figures like mayors or governors.
3. Public figures: Actors, major league athletes, etc.
4. Limited-purpose public figures: Parties who enter or are drawn into a controversy of public concern.

Your business angle probably falls under the private plaintiff category.

Defenses Against a Business Defamation Claim

Arizona’s defamation law recognizes several defenses against lawsuits regarding false claims.

One of these defenses is absolute privilege, citing a person’s right to make defamatory statements. Absolute privilege applies in private arbitration proceedings, judicial pleadings, and certain decision-making processes. Your lawyer can tell you whether your defamation claim is subject to an absolute privilege defense.

The defendant may also describe their defamatory statements as a matter of opinion. If you can prove that the reckless disregard of the statement caused harm to the reputation of your company (proving financial loss or bringing expert testimony about the loss of customers), you might shatter that defense.

How Long Do You Have To File a Business Defamation Claim in Arizona?

Your business will file a lawsuit and prove its reputation suffered harm, but what is the time frame? Arizona follows the Single Publication Rule, so generally, your company has one year from the date the defendant published their defamatory statements to start the legal process.

The exception is if something concealed the defamatory statements from your business. Then, the statute of limitations may begin on the date that your business discovered or should have reasonably discovered the false statements.

Is Your Business Struggling With False Statements and Reputational Damage? Contact Anthony Law Group

Business defamation issues can do serious harm to the reputation of your company. Has your business’s reputation or profits suffered presumed or actual damages due to false customer testimonials or others telling untruths? Experienced business attorneys know what these business defamation cases take to navigate.

Consult Anthony Law Group by calling (602) 362-2396. Our guide on protecting trade secrets for your company may also be helpful.