The law states that businesses may sue people, or other business entities, for making false, negative and malicious statements about the business that cause financial harm.
California, though, is not one of the U.S. states with criminal defamation laws. While California defamation defendants do not face potential imprisonment, they could be subject to civil lawsuits and hefty damages (including punitive damages), depending on the nature and harm caused by their false statements.
The amount one can sue for defamation varies widely based on several factors including the severity and extent of damage caused by the defamatory statement. However, damages typically range from thousands to millions of dollars depending on circumstances such as loss earnings and emotional distress.
There must be a publication of the defamatory statement, that is to say, it must be communicated to some person other than the plaintiff himself. In case of slander, either there must be proof of special damages or the slander must come within the serious classes of cases in which it is actionable per se.
In California, you must prove five elements to establish a defamation claim: An intentional publication of a statement of fact; That is false; That is unprivileged; That has a natural tendency to injure or causes “special damage;” and, The defendant's fault in publishing the statement amounted to at least negligence.
In pleading defamation, a plaintiff should allege (a) a publication, (b) that the published statement is false, (c) that the published statement is defamatory, (d) that the published statement is not privileged or was motivated by malice and (e) that the statement has a natural tendency to injure, or caused special ...
It is a defence for a defendant in a defamation lawsuit to show that he made the statement complained of, in the interest of the public. A person who makes an alleged defamatory statement can escape liability by showing that the statement which he made was an honest comment on a matter of public interest.
Truth, or substantial truth, is a complete defense to a claim of defamation.
The most common defenses to defamation are: 1) truth; 2) consent; 3) privilege; and 4) the statute of limitations. Perhaps the most distinct aspect of the defamation cause of action is that falsity is required. In other words, the statement publicized about the plaintiff must be false in order to prove defamation.