Legal Question in Construction Law in California

Re: Slander by a Customer

Sounds like slander to me. Defamation in general divides into two kinds: libel and slander. Usually it's libel if it's in a fixed format, such as in writing, while slander is spoken defamation.

The problem with suit for slander is that you have to plead and prove so-called "special damages," meaning the judge or jury can't just award you a pile of money because the slander probably will hurt your future work prospects. You would have to identify specific work you lost, calculate the lost profit from those jobs, and prove all this through witnesses who would say, "Yeah, I was thinking of hiring Joe to install my new kitchen sink until I heard from Lowe's that Mrs. Jones told them he was careless."

If the defamation becomes libel because Mrs. Jones decides to write Lowe's a letter, then it's another story; it's then "libel on its face" and you can get general (speculative) damages based on the probable bad effects without proving any more than that the defamatory writing was communicated and countering the defense that it was true by proof that it was false.

For further reference see Civil Code sections 44, 45, 45a, 46 aand 48a(4).

Re: Slander by a Customer

I agree with the previous answer. In essence, you will have to prove special damages which can be burdensome and worse; fatal to your claim if you cannot. Because of the obvious difficulty of proving special damages i.e. a specific loss of customers, few actions are brought for trade libel.

In some instances, however, disparagement of a businessperson's goods may imply business dishonesty, creating a cause of action for libel per se for which special damages need not be alleged or proved. See Civil Code ��45-45a.

Another route available to a plaintiff who cannot prove special damages is an action for inducing breach of contract or interference with a prospective advantage or unfair competition. Remedies for these torts may include recovery of damages for a general decline in business and injunctive relief (meaning you can force the defendant through a court order to cease and desist the conduct at issue.)

Best of Luck!