Business defamation—also known as business disparagement, business and commercial disparagement, or trade libel—is a claim or cause of action for damages that may be made by a business when another person or entity has defamed the business—usually by making untrue statements of fact, whether spoken (slander) or written (libel), that damage the business.
Business defamation laws vary from state to state but the elements of a business defamation claim are generally:
• the defendant published false and disparaging information about the plaintiff;
• the defendant published the words with malice;
• the defendant published the words without privilege; and
• the publication caused special damages.
Special damages are economic damages, such as lost income.
And if the plaintiff proves the defendant published false, disparaging information, and caused the plaintiff to suffer actual damages, the plaintiff is also entitled to recover exemplary damages from the defendant.
Business defamation laws may be located in a state’s statutes or in its court opinions (common law or case law).
In New Jersey, business defamation, also known as trade libel or business disparagement, is a tort that allows a business to seek damages for false statements that harm its reputation or financial interests. The elements of a business defamation claim in New Jersey typically include the publication of a false and disparaging statement about the business, publication with malice or reckless disregard for the truth, lack of privilege, and the occurrence of special damages, which are typically quantifiable economic losses such as lost income. New Jersey law also allows for the recovery of punitive or exemplary damages if the plaintiff can prove that the defendant acted with actual malice or in a willfully oppressive manner. Business defamation claims in New Jersey are governed by a combination of state statutes and common law precedents established through court opinions. It is important for businesses considering such a claim to consult with an attorney to understand the specific requirements and nuances of New Jersey law regarding defamation.