Legal Question in Personal Injury in Maryland
How to proceed regarding slander
We run a small business in Maryland. Late last year, one of our employees resigned and in February of this year, opened her own business. We recently learned that she has been contacting our clients and relaying false information to them, such as that we have a current employee who is abusing animals and stating that at least one of our current employees is providing her with this information (and the employee she is stating provided the information has not spoken to this former employee since she resigned). We have had several clients stop coming to our business and believe this is a result of the falsehoods being made about our business and one of our current employees. What can we do at this point to cease the untrue remarks and does the current employee who is being slandered have any rights to protect her reputation? Thank you.
2 Answers from Attorneys
Re: How to proceed regarding slander
You and your employee may have remedies that can include enjoining this conduct and potential damages. First, if you have an employee manual or a contract with this former employee, you should determine whether there are any provisions restricting the solicitation of your customers by this former emplyee upon termination of her employment. That may provide you with a contractual basis to act. Even if there is nothing in writing, the conduct of the former employee may amount to "tortious interference with contractual relationships" or "tortious interference with business relationships". That basically means that you could pursue legal action against this person if she is wrongfully interfering with customers and inducing them to leave you based on false or slanderous allegations. Of course, the specifics are very important, and other criteria may have to be satisfied. Also, if the former employee is inducing your customers by using your confidential information, such as contact information, pricing, or trade secrets, then the former employee may be liable under the Uniform Trade Secrets Act. Again, the specifics are very important, and this information is not legal advice specifically for your case.
Additionally, your current employee may sue the former employee for slander and/or defamation, depending on the statements made, to whom and the harm suffered.
I hope you find this information helpful. My firm has handled many similar cases, and I would be glad to discuss this with you further, if you choose, at 301-220-2200.
Re: How to proceed regarding slander
Mis-handling of animals is a specific criminal allegation. If you are not culpable, even at a civil level, then there is a number of things you can do.
Where a former employee uses information about your business, whether or not such information is acquired through a former employee, a potential unfair business practice may lie. Key to this is preserving your right to pursue a defamation claim. Be forewarned that defamation in Maryland is statutorily limited to one year from the date of the occurence.
Other remedies may lie especially where the former employee was bound by contract. If this remedy does not apply, you may benefit from a consultation regarding your business practices.
Abuse of animals is not one of the classes of tort claims where damages are presummed. You must prove your damages; however, the exact statement of defamation has alot to do with your matter. If the statement was one that attacked your business reputation, then damages are presummed. You should, at a minimum, place a properly worded demand to cease further deminuation. An attorney's assistance is advised especially if the nefarious actions adversely affect you business revenue.
G. Joseph Holthaus
(410) 799-9002
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