Trade Libel/Defamation Allegations in Commercial Litigation Cases

Summary

These allegations can be used in a complaint when asserting a trade libel/defamation claim in a commercial litigation case. This template includes practical guidance, drafting notes, and alternate and optional clauses. Publication of false or misleading information about a company's business, products, or services to discourage others from engaging with that company or individual may provide the company/individual with a cause of action for trade libel and slander of goods (as well as potential claims for unfair competition or interference with prospective business advantage). Written or oral statements that wrongfully disparage a person or business may give rise to a trade libel claim. Examples include statement that disparage a business' reputation, products, and/or services; allegations of incompetence, dishonesty, or unethical conduct; and falsely alleging insolvency of a business, among other things. Generally, a plaintiff asserting a trade libel claim will be required to establish: (1) a publication of a false statement regarding a company or individual's goods, services, or business; (2) the party making the false statement intended to cause plaintiff harm and financial loss; (3) the party making the statement knew it was false or acted in reckless disregard as to the veracity of the statement; and (4) financial loss or damages to the plaintiff resulting from the false statement. If a plaintiff can establish a specific injury from the false statement, it may be entitled to an award of damages including, among other things, lost sales, lost profits, injury to reputation, and punitive damages. However, without demonstrating a specific injury to a business's reputation or loss of sales, only nominal damages can be recovered. For additional guidance, see False Statements, Defamation, and Trade Libel, Unfair Business Practices Claims, Deceptive Trade Practices and False Advertising State Law Survey, and Commercial Litigation Causes of Action.