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What is Injurious Falsehood?

What is Injurious Falsehood?


People making false statements about your business can be really harmful to your business’s success. The reputational damage you suffer can cause you to lose customers and lose significant

26th April 2019

People making false statements about your business can be really harmful to your business’s success. The reputational damage you suffer can cause you to lose customers and lose significant revenue. Injurious falsehood helps protect your business and compensate you for the damage you have suffered. By knowing about injurious falsehood, you can better protect yourself and your business from its effects.

What Are the Features of Injurious Falsehood?

Injurious falsehood is similar to defamation, and there are several criteria you have to prove to successfully recover damages. Firstly, there must be a false statement concerning your business or your business’s goods. Secondly, the statement must be communicated to a third person. Thirdly, there must be malice by the person making the statement. Fourthly, you have to prove that you suffered actual damage as a result of the false statement.

How Is Injurious Falsehood Different to Defamation?

While commonly referred with each other, there are distinct differences between defamation and injurious falsehood. Firstly, it can only be related to the commercial interests of a business, and not you personally. Furthermore, you must actually show that the statement was a falsehood. Moreover, the false statement must be made with ‘malice’, which is not required with defamation proceedings. Finally, you must prove actual damage. On the other hand, defamation will assume damage has occurred. Moreover, only small businesses are eligible to sue for defamation.

What Does Malice Mean?

Malice are false statements with the purpose of causing damage to your business. Moreover, statements that are reckless, meaning without regards to their consequences, can also form the basis of an injurious falsehood. Usually, a court will look into whether a statement was made in ‘good faith’ to determine whether it was made with malice.

What Is the Requirement for ‘Actual Damages’?

Actual damages for injurious falsehood means that you need to prove you suffered harm. Usually, this will mean that you have to prove that you business because of the false statements. Keep in mind, that you will not necessarily have to provide an exact figure for damages, merely proving that you suffered actual loss.

How Do I Make a Claim of Injurious Falsehood?

Litigation is the avenue for claims for injurious falsehood. You will therefore have to go to court, where the Courts will assess the merits of your claim. You will have to serve a statement of claim to the other party. There will also be other court procedures and processes you will have to follow. Furthermore, if the other party does not show up to court you may be eligible for a default judgment.

Conclusion

Thus, you now know about the various features of injurious falsehood and the requirements to prove this claim against another party. Due to the complexity of the court process, it is best to get in contact with a litigation lawyer to give you the best chance for your claim to succeed.

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Author
Lachlan Ward

Lachlan is an intern at Lawpath as part of the content team. He is currently studying a Juris Doctor at the University of Sydney. Lachlan has a keen interest in corporate law and commercial litigation.