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 West Virginia, business defamation, also known as trade libel or business disparagement, is a tort that allows a business to seek damages if another party has made false statements that harm the business's reputation. The elements required to establish a business defamation claim in West Virginia are similar to those in other states and generally include: (1) the publication of false and disparaging information about the business by the defendant; (2) the publication was made with malice, meaning with knowledge of its falsity or with reckless disregard for the truth; (3) the statements were made without any privilege; and (4) the publication caused the business to suffer special damages, which are typically quantifiable economic losses such as lost profits. If a business can prove these elements, it may also be entitled to recover exemplary (punitive) damages, which are awarded to punish the defendant for particularly egregious conduct. Business defamation claims in West Virginia are governed by a combination of state statutes and common law precedents established through court opinions.