The Difference Between Defamation and Injurious Falsehood
Many clients come to us seeking a trade libel lawyer in Melbourne after realising they cannot sue for defamation. The Defamation Act 2005 limits the ability of corporations (with 10 or more employees) to sue for defamation. This was designed to protect free speech, but it leaves many businesses vulnerable to lies. Injurious falsehood fills this gap. It is an old common law tort that remains available to all entities, regardless of size.
However, the burden of proof is higher. In defamation, falsity is presumed; in injurious falsehood, the plaintiff must prove the statement is false. Additionally, while defamation focuses on reputation damage, injurious falsehood focuses strictly on financial loss. This makes it a powerful tool for commercial disputes where a competitor or malicious actor lies about your products or services to steal market share.
Proving Malice: The Critical Hurdle
The most challenging aspect of these claims is proving malice. It is not enough that the statement was wrong. We must prove the defendant was motivated by an improper purpose or knew the statement was false. This often involves analysing internal communications, the timing of the publication, and the relationship between the parties. Our team investigates these elements thoroughly to build a robust case for malicious falsehood claims.
Remedies and Damages
If successful, the court can award damages to cover your financial losses. Unlike defamation, where damages are often capped, injurious falsehood damages are calculated based on the actual loss sustained. Furthermore, courts can award exemplary (punitive) damages in these cases to punish the wrongdoer, which is strictly prohibited in defamation actions. We also frequently apply for injunctive relief to force the immediate removal of the false statements causing business damage.
Why Choose Sutton Laurence King Lawyers?
We combine deep knowledge of defamation law with commercial litigation experience. We explain the risks and costs upfront. We do not believe in running cases that have no prospect of success. Our goal is to secure a practical outcome that protects your bottom line and restores your market position. Whether you are a large corporation or a small business owner, we provide the fierce representation you need in the Supreme, County, or Federal Court.