A key meeting takes place, and in the heat of the moment, damaging statements are made about your company. While the room was small and the audience selected, could these words lead to a defamation lawsuit? The boundaries of publication in defamation law may be broader than you think.
Private statements can still be defamatory
Defamation occurs when someone makes a false statement that harms another person’s reputation. They must publish the statement, meaning they must communicate it to a third party.
It is a misconception that a defamatory statement requires a large audience. Even telling one person something untrue that damages your company’s reputation can be enough for a defamation claim.
For example, a former employee defames your business if they tell a potential client that your business is dishonest. This is true even if no one else hears the statement because the statement was communicated to a third party and could damage your business.
Maryland law on private defamation
To win a defamation case in Maryland, a business must show the following:
- The person made a false statement.
- The person communicated the statement to a third party.
- The statement caused harm to the business’s reputation.
- The person was at fault in making the statement.
Maryland recognizes different standards of fault depending on the status of the person or company claiming defamation.
A private business only needs to prove the person who made the statement was negligent, meaning they did not act reasonably when making the statement. Public figures must prove the person acted with actual malice, meaning they knew the statement was false or recklessly disregarded whether it was true or false.
Keep in mind that truth is an absolute defense to defamation. This means that if a statement is true, it cannot be defamatory, no matter how damaging it may be.
Seek legal counsel
If your business is facing a defamation claim, it is often advantageous to work with an attorney. A lawyer can help you gather evidence, negotiate with the other party and represent you in court when necessary.