Legal Question in Business Law in New Jersey

I have a family member who lost their job as a result of the company just closing up. But this is not the issue per say; This same family member along with a co-worker who is a good friend decided to open a business of their own within 4 months of lossing their jobs. They were able to get the phone number of their employer so as old customers began to call for service on their equipment the guys offered the assistance of the new company explaining that the old company closed. Some people were upset to hear as they gave the old business moneys for contracts to service their equipment but they allowed the family member and his friend to come in and service their equipment and were very happy while others just blamed them for their loss in contract money even though they were just workers for the company. Here is my question there was one person who did not allow them to come in to do work for him but went on the website and trashed them as just changing the business name and not to trust them. This in my oppinion is out right slanderous and I believe they should be able to have some remedy as this has the potential to cause their business from being able to suceed as word of mouth is one of the best sales drivers available. What if anything can they do about this?


Asked on 6/20/14, 12:24 pm

2 Answers from Attorneys
Barry Gartenberg Barry F. Gartenberg LLC

Generally, it is illegal to make false statements which cause a business to suffer... such is referred to as "defamation" or "trade libel/slander." I help businesses such as the one you mentioned on regular basis. However, I would need more information before I could give you meaningful advice. Please feel free to call me for a consultation.

Kindly note and remember that my response is merely a general comment on the law related to your question, and NOT legal advice or opinion. Also, your question and my response does NOT create an attorney-client relationship between us. You cannot rely upon what I have written, because I do not have all of the information that I need to advise you or render an opinion. Even simple facts you have not shared can completely change my answer.

Please visit my website! www.bgartenberg.com or call me 973-921-0600 if you�d like to learn more about me or my practice. Thank you.

With best wishes,

Barry F. Gartenberg, Esq.

I am a solo practitioner concentrating in business, employment and commercial real estate. I am also an adjunct professor of law.

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Answered on 6/20/14, 1:01 pm
Frank Natoli Natoli-Legal, LLC

Well, a defense to defamation is the truth or reason to believe that it is. You did not identify actionable defamation here. This is not to say that no claims are available, but we would have to look at EXACTLY what was said,. If it was just opinion like you shouldn't trust them, this is not defamation.

Further, your friends by stepping into the shoes of this former business, like keeping the same business number, for example, and basically running the business with the same people, may actually be exposed to claims under the theory of successor liability. This would be well worth exploring if I were them especially that what you are saying is that there are existing contracts that were paid on but no services provided. The fact that there is still good will there even in just the business number alone tells me that these guys might be asking for a law suit.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

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Answered on 6/20/14, 1:42 pm


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