The Serious Financial Loss Test
Section 1(2) of the Defamation Act 2013 requires businesses to show that the defamatory statement has caused, or is likely to cause, serious financial loss. This goes beyond mere reputational harm — concrete evidence of economic impact is needed. Courts look for evidence such as lost contracts, reduced revenue, quantifiable damage to business relationships, and increased operational costs arising from the defamation.
We help businesses build compelling evidence of financial loss from the outset, ensuring the claim meets this statutory threshold. This often involves working with forensic accountants and industry experts to quantify the damage.
Trade Libel and Malicious Falsehood
Not all attacks on a business's reputation constitute defamation. False statements about a company's products or services may give rise to claims in malicious falsehood (also known as trade libel) rather than — or in addition to — defamation. Malicious falsehood requires proof that the defendant knew the statement was false or was reckless as to its truth, but does not require proof of defamatory meaning.
We advise on the most appropriate cause of action for each case, sometimes pursuing both defamation and malicious falsehood claims to maximise the prospects of success.
Competitor Disputes and Unfair Practices
Defamation by competitors — whether through comparative advertising, industry communications, or online campaigns — is a growing concern. We act for businesses facing unfair competitive practices, combining defamation claims with remedies under advertising standards regulations and competition law where appropriate.
For directors and senior executives personally targeted as part of an attack on their business, we also advise on individual claims that can be pursued alongside the corporate action.