Defamation claim against another business

This is a well-recognised area of law and you potentially have several routes available to you. Let me set out the legal position and the practical considerations.

Legal position:

The primary cause of action for false claims made about a business is defamation, specifically libel if the statements are in writing or other permanent form, and slander if they are spoken. Since the Defamation Act 2013, which governs claims in England and Wales, there are some important thresholds you need to be aware of.

Serious harm requirement:

Under section 1 of the Defamation Act 2013, you must show that the publication of the statement has caused or is likely to cause serious harm to your reputation. For a body that trades for profit, this means you must show that the statement has caused or is likely to cause serious financial loss. This is a significant hurdle and you will need evidence linking the false claims to actual or likely financial damage to your business.

Key elements you would need to establish:

1. The statement was published to at least one third party.
2. The statement referred to you or your business.
3. The statement was defamatory, meaning it would tend to lower you in the estimation of right-thinking members of society.
4. The statement caused or is likely to cause serious financial loss.

Possible defences the other business might raise:

The other business could rely on truth (section 2), honest opinion (section 3), or publication on a matter of public interest (section 4). If the claim is true, that is a complete defence regardless of the motive behind it.

Other potential causes of action:

Depending on the nature of the false claims, you may also have a claim for malicious falsehood. This requires you to show that the statement was false, that it was published maliciously (meaning with a dishonest or improper motive), and that it has caused you actual financial loss or falls within the special categories under section 3 of the Defamation Act 1952 where damage is presumed.

If the false claims amount to passing off, unfair commercial practices, or interference with your business or contractual relations, those may provide additional or alternative causes of action.

Practical considerations before issuing proceedings:

1. Gather and preserve the evidence. Take screenshots, keep copies of emails, record dates and witnesses, and note down any financial impact you can identify. Evidence has a way of disappearing, especially online, so act promptly.

2. Quantify the loss. Think carefully about whether you can demonstrate actual or likely financial loss. This might include lost contracts, lost customers, reduced revenue, or costs incurred in damage limitation.

3. Send a letter before action. The Pre-Action Protocol for Media and Communications Claims applies to defamation cases. You should send a detailed letter identifying the false statements, explaining why they are false, setting out the harm caused, and specifying what you want the other business to do, for example retract the statement, publish a correction, pay compensation, or provide an undertaking not to repeat the claims.

4. Consider whether an informal or negotiated resolution is possible. Many defamation disputes are resolved through retractions, apologies, undertakings, or agreed statements without the need for court proceedings. This is often quicker, cheaper, and less stressful.

5. Think about cost and proportionality. Defamation claims are heard in the High Court and can be extremely expensive. Legal costs can run into tens or hundreds of thousands of pounds. You need to weigh the likely recovery against the cost of pursuing the claim.

6. Consider interim relief. If the statements are ongoing and causing continuing damage, you could seek an interim injunction to prevent further publication, though the court will apply a high threshold before granting one, particularly given the right to freedom of expression under Article 10 of the European Convention on Human Rights.

7. Check limitation. The limitation period for defamation and malicious falsehood is one year from the date of publication under section 4A of the Limitation Act 1980. This is a short deadline and you should not delay.

Important things that would affect the advice:

The specific wording of the false claims, how and where they were published, when they were published, whether you can show financial loss, and the financial standing of the other business all matter significantly. Whether the other business is likely to have assets worth pursuing is also a very practical consideration.

If you can share more detail about what was said, how it was communicated, and what effect it has had on your business, I can give you more targeted guidance on the strength of your position and the best route forward.