Malicious Falsehood
Overview
Injurious or malicious falsehood is similar to defamation. It includes slander of title to land or goods.
It also includes false statements designed to injure a person in his trade or business. It is different to defamation in that the falsehood may reflect well on the plaintiff but nonetheless cause him loss.
It is not necessary to allege any special damage if the words are calculated to cause a loss in respect of an office, profession or trade.
Malicious Falsehood
Malicious falsehood is constituted by deliberate false statements in relation to a person’s assets or business, which damage him in the course of trade or in a personal capacity. It includes
- slander of title to land, goods or other assets;
- false statements generally regarding people in their trades
such that the falsehood deceives third parties regarding the plaintiff and causes him a loss.
The false statement need not necessarily be defamatory in nature. The crucial element is that it is such as to cause loss or damage to the claimant.
Statutory Requirements
Under the Defamation Act, in the case of a slander of title to land, goods or other injurious falsehood, the claimant must prove that the statement concerned was untrue, was published maliciously and referred to the plaintiff, his property, assets, office, calling or profession.
Malice, which is an older common law concept, is required. It generally implies a dishonest, unjustified claim. Accordingly, an honest statement of belief in good faith obviates malicious falsehood.
The defendant must be aware that the statement is false or may be reckless as to whether it is true.
Loss
Actual financial damage is required. It may constitute a loss of business, loss of a transaction or sale.
In an action for slander of title, slander of goods and other malicious falsehood, the 2009 Act requires the claimant to prove special damage. Special damages are financial loss suffered by him or her as a result of the injury to his or her reputation caused by the publication of the statement in respect of which the action was brought.
Proof of special damages is not required where the publication is calculated to cause or likely to cause financial loss to the plaintiff in respect of his property or his office, profession, calling or business.