Eligibility Grounds for a Company to File Defamation Case

Your company may be entitled to sue another entity under certain conditions. Based on the Defamation Act of 2005 and other causes of action, you may have a case. When an entity publishes reckless false information, it's possible for the plaintiff to seek damages.

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Here are more details about the eligibility of defamation suits.

Defamation Act Section 9 of the Defamation Act limits a corporation's cause of action for defamation to a not-for-profit company or a firm of under 10 employees that isn't connected with another company. But even if a defamation scenario isn't satisfied by section 9, there are other possible causes of action.

Competition and Consumer Act Schedule 2 of the Competition and Consumer Act of 2010 requires that an individual must not participate in a misleading or deceptive activity related to trade or commerce. Publishing material that the writer knows to be false or reckless without concern for the truth with a dominant motive to damage a business is a cause for action.

Publishing False Information When someone publishes false information about a company that leads to special damage, the plaintiff can seek to recover damages. Known as an action of injurious falsehood, this claim puts the burden of proof on the plaintiff to satisfy the following conditions:

  1. the published material is false
  2. actual damage has resulted from the publication
  3. the intent of the publication is an act of malice
  4. The court may award the plaintiffs an interlocutory injunction when falsehood and damage are involved.


Keating and Lyden

Keating & Lyden LLC was founded by attorneys-at-law, Robert J. Keating, and Thomas P. Lyden and is based in Boulder, Colorado, and Bellingham, Washington. The attorneys specialize in providing legal advice in real estate matters to businesses and individuals pertaining to real estate management and operation including: tenancy in common agreements, partition agreements, real estate financing, homeowner’s associations and land use issues. They also provide the highest quality legal services to small business owners and entrepreneurs.

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