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Malicious Falsehood

Malicious Falsehood

Have you found yourself the target of false statements that go beyond defamation? If these untruths were made with malicious intent and caused you or your business financial harm, you might be dealing with a case of malicious falsehood. 

Malicious falsehood refers to the deliberate spreading of false statements intended to cause damage to an individual or business. Unlike defamation, which harms reputation, malicious falsehood specifically targets financial loss. This could involve false claims about your business practices, products, or personal conduct, aimed at undermining your success or causing you financial distress.

Whether it’s a competitor spreading lies about your services or an individual making false claims about your personal life, the fallout from malicious falsehood can be devastating, affecting both your professional standing and personal peace.

• What is malicious falsehood?

• What is the difference between malicious falsehood and defamation?

• What are the legal criteria for a malicious falsehood claim?

• Examples of malicious falsehoods

• How can I prove that a statement was made maliciously?

• What kind of evidence is needed to support a malicious falsehood claim?

• How do I make a malicious falsehood claim?

• Can I claim damages if a false statement has hurt my business?

• What defenses can be used against a malicious falsehood claim?

• How long does it take to resolve a malicious falsehood case?

• What are the potential outcomes of a successful malicious falsehood claim?

• Can I claim malicious falsehood if the false statement did not cause financial loss?

• What are the costs associated with making a malicious falsehood claim?

• How does the court determine the damages in a malicious falsehood case?

• What should I do if I believe a competitor is spreading false information about my business?

• What are my options if a malicious falsehood claim is made against me?

At Lawhive, our network of experienced malicious falsehood lawyers is on hand to provide high-quality legal support at a fraction of the cost of traditional law firms. 

Don’t let malicious falsehoods damage your finances or peace of mind.

Contact us today for a free case evaluation and discover how our expert network of lawyers can help you protect your rights and secure the compensation you deserve. 

What is malicious falsehood?

Malicious falsehood, also known as trade libel or injurious falsehood, is a legal concept in UK law that deals with false statements made with malicious intent to cause harm, primarily resulting in financial loss. 

What is the difference between malicious falsehood and defamation?

Malicious falsehood and defamation are both legal claims involving false statements, but they address different kinds of harm and have distinct requirements under UK law. 

Defamation focuses on reputational damage without the need to prove malice or financial loss, whereas malicious falsehood requires proof of falsehood, malicious intent or recklessness, and financial harm.

What are the legal criteria for a malicious falsehood claim?

For a successful claim of malicious falsehood, the claimant must prove:

1. The statement in question is demonstrably false.

2. The statement was made with malicious intent or with reckless disregard for the truth.

3. The false statement was published or communicated to third parties.

4. The statement caused or is likely to cause financial harm or loss to the claimant.

What is the burden of proof for malicious falsehood?

In a malicious falsehood case, the claimant bears the burden of proving:

1. The statement was false

2. The statement was published

3. The statement was made with malicious intent or reckless disregard

4. The statement caused or was likely to cause financial loss.

Examples of malicious falsehoods

Malicious falsehoods can take various forms and occur in different contexts, often resulting in significant financial or economic harm.

Here are some examples to help understand how malicious falsehoods manifest in real-world scenarios:

Competitor smear campaigns 

A competitor falsely claims that your products contain harmful ingredients or are made using unethical practices. 

As a result, customers stop purchasing your products, leading to a significant drop in sales and potentially long-term damage to your brand’s reputation. 

False advertising claims 

An advertising campaign falsely claims that your product is inferior to that of a competitor, leading to lost business opportunities, cancellation of contracts, and a decline in market share as consumers choose competitors over your product based on these false claims. 

Fabricated financial health statements 

A rumour is spread that your company is facing imminent bankruptcy or severe financial difficulties, causing investors to withdraw their support, clients to cancel contracts, and potential partners to avoid doing business with you, resulting in a significant financial setback.

False accusations in professional settings 

An individual falsely claims you have engaged in fraudulent activities or unethical behavior in your professional role. Such accusations can lead to disciplinary actions, loss of employment, or damage to professional relationships, causing financial and career harm.

Untrue statements about personal conduct 

Someone spreads a false rumor that you have engaged in illegal or immoral conduct outside of work, such as drug use or theft. This can tarnish your personal and professional reputation, leading to a loss of trust and potential financial repercussions, such as losing business clients or job opportunities.

False reviews and social media posts

An individual or competitor posts fake negative reviews about your business on review sites or spreads false claims about your products on social media. This can deter potential customers, damage your online reputation, and lead to a decline in sales and revenue.

Defamatory blog posts or articles 

A blog or news site publishes false statements about your business practices or personal conduct without verifying the facts. Such publications can reach a wide audience, leading to widespread misconceptions and financial losses as a result of damaged reputation and decreased business opportunities.

Is slander malicious falsehood?

Slander is a form of defamation that involves making false and defamatory spoken statements about someone, which harm their reputation.

Malicious falsehood involves making false statements with malicious intent that cause financial harm or are likely to do so and can involve spoken and written statements.

Therefore slander can be seen as malicious falsehood provided spoken statements are made with malicious intent and lead to financial harm, or the possibility of it. However, not all malicious falsehoods are slander.

How can I prove that a statement was made maliciously?

Malice involves demonstrating that a statement was made with the intent to cause harm. This can be shown through evidence that the defendant acted with a specific purpose to damage your financial interests.

Alternatively, malice can be established if the defendant showed reckless disregard for the truth, meaning they made the statement without caring whether it was true or false, and with reckless indifference to the consequences.

This can be achieved through direct evidence, such as emails, text messages, social media posts, or recorded conversations, or indirect evidence like a pattern of behavior by the defendant that indicates a deliberate attempt to harm. This might include previous false statements, ongoing rivalry, or hostile actions towards you.

What kind of evidence is needed to support a malicious falsehood claim?

Evidence to support a malicious falsehood claim must demonstrate: 

1. The falsehood of the statement;

2. The malicious intent or reckless disregard of the defendant;

3. The publication of the statement;

4. The financial loss or potential loss suffered as a result.

Types of evidence required to support a malicious falsehood claim include: 

• Copies of written false statements (emails, letters, social media posts, advertisements, or online articles)

• Records of spoken falsehoods (audio or video recordings, transcripts of speeches, or witness statements) 

• Emails, text messages, or recorded conversations where the defendant explicitly expresses intent to harm or acknowledges the falsehood

• Admissions by the defendant that they knew the statement was false but chose to disseminate it anyway

• Evidence showing a pattern of similar malicious behaviour

• Evidence showing that the false statement was published or communicated to others

• Statements from individuals who heard or saw the falsehood, confirming that the information was shared with them

• Financial records showing a decline in sales, lost contracts, or decreased business performance directly linked to the false statement

• Evidence of contracts or business deals that were cancelled or negatively affected due to the falsehood.

How do I make a malicious falsehood claim?

To make a malicious falsehood claim you should seek legal advice from a solicitor. They will explain the legal criteria for a malicious falsehood claim and help you identify what evidence you need and how to document it effectively. 

You (or your solicitor) will need to prepare and file a claim form and particulars of the claim with the appropriate court to start the legal process. You will also need to serve the defendant with the legal documents. 

Before your claim reaches court, you will likely have to follow the relevant pre-action protocol, during which you and the defendant will disclose relevant documents and evidence to each other and explore the possibility of resolving the dispute without going to trial. 

Can I claim damages if a false statement has hurt my business?

You can claim damages if a false statement has hurt your business, particularly if the statement has caused financial loss or damaged your business reputation. 

Types of damages you may be able to claim include: 

• Special damages for specific, quantifiable financial losses directly attributable to the false statement.

• General damages to compensate for noneconomic harm such as damage to your business’s reputation.

• Punitive damages to punish the wrongdoer and deter similar conduct in the future.

• Nominal damages to acknowledge the wrong done if financial losses are minimal or not clearly demonstrated.

What defenses can be used against a malicious falsehood claim?

Defenses used against malicious falsehood claims typically focus on disputing the key elements that the claimant must prove: the falsity of the statement, malicious intent, publication, and financial loss.

Common defenses against malicious falsehoods include:

• The statement in question is true. 

• The statement was made in good faith, without any intent to harm or with a reasonable belief in its truthfulness. 

• The statement was made in a context protected by absolute or qualified privilege. 

• The statement was an expression of genuine opinion rather than a statement of fact. 

• The statement was not made recklessly or with malice but was a reasoned and honest expression of belief.

• The statement was made on a matter of public interest, where there is a legitimate public interest in the information being shared.

• The statement was published responsibly, with efforts to verify the facts and without reckless disregard for the truth.

• The claimant did not suffer any actual financial loss because of the statement or that any alleged loss is speculative or unsubstantiated.

• Any financial losses claimed by the claimant are not directly attributable to the statement or the losses were caused by other factors.

Each defense requires thorough evidence and a strategic approach to effectively counter the claim.

At Lawhive, our experienced commercial solicitors can help you build a strong defence against malicious falsehood claims.

Contact us today for a free consultation and personalised legal support to protect your interests and reputation.

How long does it take to resolve a malicious falsehood case?

The resolution of a malicious falsehood case can range from a few months to over a year.

Factors that influence the duration of a malicious falsehood claim include the complexity of the case, the willingness of both parties to settle the dispute, and the court’s schedule and backlog. 

Cases where parties are open to negotiation and settlement typically resolve faster than those that go to court.

What are the potential outcomes of a successful malicious falsehood claim?

Winning a malicious falsehood claim can lead to various favorable outcomes for the claimant, aimed at compensating for the financial harm suffered and mitigating the effects of the false statement. 

Potential outcomes include: 

• Monetary damages 

• Injunctive relief to prevent further harm

• A public retraction or apology

• Recovery of legal costs including solicitor’s fees, court fees, and other litigation related expenses

• Actions to repair the claimant’s reputation

Can I claim malicious falsehood if the false statement did not cause financial loss?

A claim of malicious falsehood is fundamentally tied to financial loss. Therefore, to make a successful claim you must prove that the false statement caused actual financial loss or was likely to cause such loss. 

If the false statement did not cause actual financial loss and there is no demonstrable likelihood of such loss, a malicious falsehood claim may not be viable. Instead, you may consider claiming for defamation, negligent misstatement, or breach of contract. 

Additionally, applying for an injunction or corrective measures can help mitigate the impact of the false statement and protect your interests.

At Lawhive, our network of experienced solicitors can help you explore all available legal options to address the impact of false statements.

Contact us today for a free case evaluation to learn more. 

What are the costs associated with making a malicious falsehood claim?

Pursuing a malicious falsehood claim involves various costs that can add up over time. Typical expenses you might incur during the process include: 

• Solicitor’s fees for advice, drafting documents, negotiating settlements, and legal representation

• Barrister fees for specialist court representation

• Court fees including filing and hearing fees 

• Expert witness fees

• Mediation fees

How does the court determine the damages in a malicious falsehood case?

In a malicious falsehood case, the court’s primary objective in awarding damages is to compensate the claimant for the financial loss suffered due to the false statement. 

As such, the court will consider specific quantifiable losses directly resulting from the false statement, like lost sales and cancelled contracts when calculating special damages. 

For general damages, the court will also consider harm to the claimants business reputation and reduced future business opportunities. 

Other factors that may influence the calculation of damages include: 

• The seriousness and potential harm of the false statement.

• How widely and to whom the false statement was shared. 

• The extent to which the defendant acted with malicious intent or reckless disregard for the truth.

• The defendant’s behavior before, during, and after making the statement, including any attempts to mitigate or exacerbate the harm.

What should I do if I believe a competitor is spreading false information about my business?

If you believe a competitor is spreading false information about your business, you should first collect examples such as online posts, emails, advertisements, or spoken comments. You should also document any immediate financial impacts, like lost sales or cancelled contracts. 

Then, contact a commercial lawyer. They can provide expert advice on the merits of your case and discuss your legal options from making a malicious falsehood claim to seeking an injunction to prevent the competitor from continuing to spread the false information. 

Your solicitor can also advise on how to respond to false statements. This could involve sending a cease and desist letter or attempting to engage directly with the competitor to resolve the issue. 

What are my options if a malicious falsehood claim is made against me?

If you are facing a malicious falsehood claim, you should seek legal advice immediately. 

Your solicitor can provide expert advice on the strengths and weaknesses of the claim against you and help you file a defence statement or negotiate a settlement with the claimant. You may also be able to file a counterclaim if you believe the claimant has also wronged you. 

Get legal help with malicious falsehood claims from Lawhive

Whether you’re defending against accusations or seeking justice for the harm caused to your business, understanding your options when it comes to malicious falsehood is important. 

At Lawhive, we understand the significant impact that false statements can have on your financial well-being and reputation, and we’re here to offer tailored solutions to protect your interests. 

As such, our network of commercial lawyers is on hand to provide comprehensive legal support for malicious falsehood cases. 

Why choose Lawhive?

• Expert legal guidance: Our network of solicitors are experts in handling malicious falsehood and defamation cases, offering strategic advice and representation to address your situation.

• Affordable services: We provide high-quality legal services at a fraction of the cost of traditional law firms, ensuring you receive the best support without the high price tag.

• Comprehensive support: From initial consultation to case resolution, we assist you every step of the way, whether you need to gather evidence, file a defense, negotiate a settlement, or pursue a claim.

If you’re dealing with malicious falsehood, don’t wait until the damage becomes irreparable. 

Contact us today for a free case evaluation. 

Our Legal Assessment Specialists will listen to your concerns, assess your case, and provide you with a no-obligation quote for the services of a specialist lawyer from our network.