Thursday, December 20, 2012

Defamation Lawsuits to Rise?

The growing number of websites such as Yelp and Angie's List, where consumers can post reviews of local businesses, may have the effect of increasing the number of defamation lawsuits that are filed.  Defamation includes the similar torts of libel and slander.  Historically, libel was defamation in written form while slander was oral defamation.  Both involve publishing (whether by word or mouth) false or misleading statements about another.

Defamation lawsuits in the United States are fairly uncommon due to the First Amendment, which guarantees freedom of speech.  In Great Britain, libel and slander suits are much more common.  But the growing use of the Internet, the prospective reach of the Internet and the relative anonymity of the Internet are all pointing to signs in a rise of such suits.  Here's how it works:  A consumer gets what she feels is shoddy service from a local business.  Instead of complaining directly to the business (or perhaps after doing so without getting satisfaction) she posts a scathing review on one of the websites devoted to that or to her Facebook page.  The fact that she can do so from her own home without immediately being subjected to any contrary feedback might prompt her to embellish the "facts" a bit.  The shoddy workmanship might become an intentional attempt to rip her off.  The business might be described as crooked.  All of a sudden her rant gets spread to hundreds or thousands of readers.

Businesses, who rely on word of mouth and reputation, are becoming pro-active in attempting to squelch negative images.  For example, a Chicago plastic surgeon sued when a former patient accused him of giving her "Frankenstein breasts."  The woman might suddenly find herself a defendant in a defamation suit.  While it's true that truth is an absolute defense, that vindication might come only after the expenditure of thousands of dollars in legal fees.  And there are cases of consumers losing.  A California technology company was awarded $1.5 million against a blogger who accused the firm of cheating associates.  A Florida woman won an $11.3 million verdict over claims she was a "crook" and a "con artist."

Before you hit the "publish" button, stop and think what the effect of your rant might be.

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