Legal Question in Business Law in New Jersey

Can a person be held liable for trashing the reputation of a company?

I own a small software company that sells point of sale software and has built a solid reputation on customer service. we have a new customer that is forced (very much against his will) to use our software by his management to run his shop (small retail). He has been verbally abuse to my staff on many occations (durring traing, on the phone for technical support, etc) and has made it very clean that he does not want to use the software. The issue is that he has been called by at least two different potential customers and has completely trashed my company. We realize that he is intentionally attempting to sabatoge the software at his store because he does not want to use it. But trashing our company and service to potential clients is causing us to loose sales. I very much want to call the general manager of this business and threaten a law suit if this guy does not stop trashing our reputation without merit. is this reasonable? is it legal? my company is based in Pennsylvania and the customer is located in New Jersey.


Asked on 12/21/00, 5:30 pm

3 Answers from Attorneys
Robert Gleaner Robert A. Gleaner, P.C.

Re: Can a person be held liable for trashing the reputation of a company?

His actions are neither reasonable nor legal. He certainly can be held liable under our defamation laws for his actions. The first step would be for a lawyer to send him a letter warning him that any further statements will subject him to a law suit. Then, of course, if he does not stop, the suit would commence. You should be aware that there are difficult proofs in such an action and you would need the testimony of the people who called him and heard his statements. Keep in mind that this advice is based purely on the little bit of information that you have given to me. There may be other factors that would change my opinion. Further, no one can rely on advice from an attorney who has not been retained. Since you have not retained an attorney in this case, before you take any further action, you should contact an attorney (either me or someone else) to discuss your matter in more detail. Only then will you be able to rely on the advice. I will be happy to assist you. However, you need to call me at 856-546-8010. If you mention LawGuru, there will be no charge for your first consultation. Good luck! Rob Gleaner

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Answered on 12/27/00, 10:00 am
Walter LeVine Walter D. LeVine, Esq.

Re: Can a person be held liable for trashing the reputation of a company?

There are multiple claims that could be raised, including defamation, slander (if only verbal attacks) or libel (if in writing). You might also want to consider possible intentional torts such as intentional interference with business relationships. I suggest talking to a local attorney familiar with civil actions including torts, and write a letter to the owner of the business (certified mail) spelling out what has been happening, plus asking that there be immediate cessation of this activity, plus a written letter of apology (that you can send to customers and lost customers). If necessary, if it doesn't stop, have the attorney file for an injunction on the conversations and also file for the claim. If there is an intentional tort found to exist, not only can you get damages for loss of business, but possibly punitive damages as well.

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Answered on 12/27/00, 1:19 pm
Stuart G. Brecher Law Offices of Stuart G. Brecher, LLC

Re: Can a person be held liable for trashing the reputation of a company?

He may be subject to a claim of common law defamation and slander against your company if he has made false and defamatory remarks about your company and its product.

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Answered on 12/26/00, 11:40 pm


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