Why Defamation Law May Not Be Enough
Many business owners are surprised to learn that under Section 9 of the Defamation Act 2005, corporations with 10 or more employees are generally excluded from suing for defamation. This exclusion effectively blocks larger businesses from using standard defamation law to protect their reputation. However, this does not mean you are without options. It simply means your legal strategy must shift towards commercial litigation and economic torts.
We help businesses pivot their strategy to claims of injurious falsehood. Unlike defamation, where damage is often presumed, injurious falsehood requires a stricter burden of proof. You must demonstrate that the statement was false, that it was published to a third party, that it was done with malice (intent to harm), and critically, that it caused actual financial loss. While the bar is higher, the remedies can be significant, directly addressing the revenue you have lost.
The Mechanics of Tortious Interference
Another powerful tool in our arsenal is the action for tortious interference with business relationships. This occurs when a third party intentionally damages your business by interfering with your contractual or business relations using unlawful means. This might involve a competitor threatening your suppliers, spreading lies to your key clients to make them cancel orders, or inducing your staff to leave in breach of their employment contracts.
To succeed in a claim for unlawful interference with contracts, we work with you to gather evidence showing:
- The existence of a valid contract or business relationship.
- The interferer's knowledge of that relationship.
- Intentional acts designed to disrupt that relationship.
- Actual damage resulting from the interference.
Calculating Damages and Proving Loss
In business reputation damage legal action, quantifying the loss is often the most complex stage. General damages for 'hurt feelings' are rarely awarded to companies. Instead, we focus on 'special damages'—calculable financial losses. Our team works closely with you (and forensic accountants if necessary) to document lost contracts, decline in sales figures, and the cost of mitigation strategies used to counter the interference.
We also understand the urgency of these matters. If a competitor is actively stripping your client base through lies or interference, waiting for a trial is not an option. We are experienced in applying for urgent injunctive relief in the Supreme Court or Federal Court to restrain the conduct immediately while the substantive case is prepared. Our goal is to stop the bleeding first, then pursue compensation.
Whether you are facing a rogue competitor, a disgruntled former business partner, or a coordinated attack on your supply chain, Sutton Laurence King Lawyers provides the firm representation you need. We explain the risks, costs, and likely outcomes in plain English, allowing you to make commercial decisions about how far to push the litigation.
