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Tag Archives: Business Litigation

When Can a Company Sue Over Commercial Disparagement?

Author By Todd McMurtryPosted on

Commercial disparagement, also known as trade libel, is a cause of action by which a business can seek damages when false and damaging statements about its products, services or overall operations cause economic harm. The core elements of a claim typically include a public false statement, the presence of malice or intent to cause harm and demonstrable financial damage to the business.

Commercial disparagement can occur through written publications, spoken statements, digital communications, advertisements and even social media posts. If a competitor claims that a company’s product is defective or unsafe or alleges unethical business practices without a factual basis, these statements can damage the company’s brand and diminish customer goodwill, leading to loss of revenue. Rapid spread of information online increases the potential impact of disparaging statements.

Although commercial disparagement and business defamation have similarities, such as the underlying falsity of the statements made, there are key differences. Defamation is damage to the reputation of a company or its owners, whereas commercial disparagement is injury to the company’s economic interests. In business defamation cases, harm to reputation often presumed. In contrast, plaintiffs in commercial disparagement cases must provide concrete evidence of a direct link between the disparaging remark and the financial damage incurred.

Companies suing for commercial disparagement can seek compensatory damages, covering actual financial losses directly caused by the disparaging statements. These can include lost profits, decreased sales and harm to business relationships. In cases where malice or fraudulent intent is proven, punitive damages may also be awarded to punish the offending party and deter similar conduct in the future. Additionally, injunctive relief may be sought to prevent further dissemination of the false information.

Defendants in commercial disparagement lawsuits have several potential defenses. Truth is the most powerful defense; if the statement in question is factually accurate, it cannot be considered disparagement. Another defense is privilege, where certain communications are protected due to the context in which they are made, such as in legal proceedings or governmental reports. Additionally, the defense of opinion may apply if the statement is clearly a subjective view rather than a factual assertion. Lack of malice or intent to harm can also be a defense, asserting the statement was made negligently rather than with deliberate intent to damage the business.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.

What to Do if Your Business Gets Sued for Breach of Contract

Author By Todd McMurtryPosted on

Contracts have been called the lifeblood of a business, and when unexpected troubles interrupt the flow, the health of the enterprise is affected. Being sued for breach of contract can greatly tax your business, costing you legal fees and exposing you to the risk of paying monetary damages. If you have been sued or believe that you might be sued, there are prudent steps you should take.

Even if you have not yet been served with a complaint, consult with a business attorney about the risk of litigation and how to prepare. At your initial consultation with the attorney, you should bring a copy of the contract, your business liability insurance policy and any other relevant documents. Your attorney can review the situation and your relationship with the prospective plaintiff and can advise you about possible actions to avert the suit.

Once you are sued, you should immediately contact your insurance carrier. You may hold a general liability policy, a commercial property policy or a business owner’s policy that includes both. Provide the carrier with a copy of the complaint and answer any questions the insurance adjustor asks about it. If your policy covers the dispute, the insurance carrier has a duty to defend you, which means that it must provide you with capable legal counsel. If you don’t have a policy that covers the dispute, you must retain your own lawyer.

Your attorney, whether provided by the insurer or retained by you, will take the following steps as appropriate:

  • File a motion to dismiss the complaint, based on any substantive or procedural defects.
  • File an answer to the complaint, listing your defenses and raising any counterclaims you might have against the plaintiff.
  • Conduct discovery, which is a set of procedures for obtaining information from the opposing party, which could include requests for production, interrogatories (written questions) and depositions (oral questions).
  • Help you respond to discovery and represent you and your employees during depositions.
  • File and respond to pretrial motions.
  • Conduct settlement negotiations on your behalf.
  • Prepare evidence and witnesses for trial.
  • Present evidence in your favor and rebut the plaintiff’s evidence during trial.
  • File or respond to any post-trial motions.
  • Represent you in any appeals.

If you retain your own counsel, make sure the firm is experienced in business litigation as well as in negotiation. Skillful handling of breach-of-contract cases includes making efforts to avoid excessive costs and disruption of business operations, as well as to preserve customer and supplier relationships to the extent possible. These goals are best accomplished if the case is settled out of court. However, the attorney must always be prepared to effectively protect your interests at trial.

About Finney Law Firm, LLC

Founded in 2014, FLF has grown to 15 attorneys located in offices in Eastgate and downtown Cincinnati with five major practice areas: Corporate Law, Real Estate Law, Employment Law, Commercial Litigation and Public Interest and Constitutional Litigation.  FLF has the unique claim to three 9-0 victories at the United States Supreme Court for its public interest practice along with breakthrough class action work.

FLF also has an affiliated title insurance company, Ivy Pointe Title, LLC, that closes and insures nearly a thousand commercial and residential real estate transactions annually.

For more information about Finney Law Firm, visit finneylawfirm.com.

Media Contact: Mickey McClanahan; mickey@finneylawfirm.isoc.net; 513.797.2850.