It's easier than ever for people to make defamatory statements about businesses...
All business owners recognise the importance of maintaining a good reputation.
Your reputation can impact revenue, future growth, the wellbeing of staff, and the ultimate success of your business, so it is crucial that you do everything in your power to protect it.
With the rise of social media and online review platforms, it has never been easier for people to make defamatory statements that can cause significant financial and reputational damage to your business.
If you believe that your business has suffered due to defamation, you could be entitled to make a claim.
In this guide, we will cover some key information about business defamation claims.Â
What Is Defamation Of A Business?Â
In England and Wales, put simply, business defamation is where false assertions about a business are made that seriously impact its reputation.
Do I Need A Solicitor For Making A Defamation Claim?
If you are looking to make a defamation claim, you are likely wondering if you need a solicitor on board.
Although it is not a legal requirement, it is highly recommended that you enlist the help of a solicitor.
Reasons why you should seek the legal advice of a solicitor when making a defamation claim include:
It is a specialist area of law;
There is the potential for a Judge to Order that you pay substantial costs if you lose;
A solicitor can assess the likelihood of a successful claim;
They can mitigate further damage;
They can help you draft a Letter of Claim, which must include certain content to comply with court rules;
They can help you gather the right evidence and;
They can help negotiate a fair settlement for you and hopefully avoid the need for court intervention. Â
What is ‘Serious Financial Harm’?
Under the Defamation Act 2013 and the court’s rules, companies need to show that their business’ reputation has been seriously harmed and has suffered or is likely to suffer serious financial loss for a successful defamation action.Â
Companies need to demonstrate this at the outset, in accordance with the court’s rules, and doing so is certainly not straightforward.Â
There is no one-size-fits-all answer when it comes to ‘serious financial harm’, as this will differ depending on the size of the business, if there has been a loss of profit attributable to the defamation, and many other varying factors.Â
As such, each case will depend on its own facts, and it’s important that you seek legal advice.
A solicitor can help you:
1. Mitigate Damage
Defamation that is likely to cause severe financial and reputational damage to your business may need immediate action to stop further damage from being caused.
Seeking advice from a solicitor and instructing them at your earliest opportunity can help to minimise and mitigate further damage being caused to your business’ reputation.Â
At Harding Evans, our defamation solicitors have years of experience in assisting clients through defamation claims, including up to Trial, and we will take urgent action to limit the impact of a defamatory statement.
2. Draft A Letter Of Claim
A Letter of Claim is the first stage in the process to assist in resolving matters relating to defamation without court intervention. Legal action is costly, especially for smaller-sized businesses, and should often be taken as a last resort.
An experienced solicitor will be able to help you draft a Letter of Claim, setting out the details of your claim and the arguments supporting your case.
A well-written Letter of Claim has the potential to bring your case to a conclusion without you having to go to court, which can save you a considerable amount of money in the long run.
That said, there is a 12-month time limit in defamation cases, so it is best to seek legal advice at your earliest opportunity.
3. Gather The Right EvidenceÂ
Another reason why you should seek the help of a solicitor when making a defamation claim is that they can assist you in gathering the right kind of evidence to support your claim.
Evidence might include relevant correspondence regarding the statement or comments made by prospective customers that they decided against using your business following the statement (including the meaning of the words used and the extent of publication).
4. Reach A Fair SettlementÂ
A defamation solicitor may be able to help you negotiate a fair settlement. Your solicitor will act in your best interest to get you the best possible deal as their client, helping you to understand all terms of a settlement.
This can be invaluable when your emotions are heightened due to the high stakes during a defamation case.Â
If you do not agree to the settlement offer, your solicitor will also help you to understand what your next best options are and help you navigate the process.
What can I do if someone has tried to discredit my business?
Our Head of Commercial Litigation, Ben Jenkins, explains to Welsh Rugby legend and business owner, Sam Warburton in this video:
How We Can Help
Defamatory statements can result in severe consequences for your business. If your business has been falsely or maliciously attacked, look no further than Harding Evans.
Our defamation solicitors recognise the harm and stress defamatory statements can cause and will be able to guide you during every step of making a defamation claim.Â
We can also help you, depending on the words used, identify various other potential causes of action such as harassment, misuse of private information and breach of privacy, and advise you as to when police action might be warranted too.Â
To establish whether a claim is possible, get in touch with our experienced solicitors today.
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