Legal Question in Personal Injury in South Dakota

Re: Defamation of Character?

First I should mention that your description of the circumstances surrounding this question suggests that you were temporarily suspended and have been offered the opportunity to return to work in the same position that you had previous to your suspension. Since your question asks specifically about the possibility of a "defamation of character" lawsuit, I will provide you information about that type of claim only. You should be aware that a more thorough evaluation of the facts by a qualified attorney may suggest that other causes of action should be considered besides defamation of character.

In South Dakota the cause of action for defamation rests on statute. The statutes are contained in Chapter 20-11 of the South Dakota Codified Laws (SDCL). The basic statement of the law is that "every person is obligated to refrain from infringing upon the right of others not to be defamed." Defamation can be either by libel or slander. Basically, libel is defamation by means of writing or other fixed representation to the eye. Slander is defamation that is not libel, essentially verbal communication though not always.

Defamation requires that the statements made be false and unprivileged. In the circumstances you describe, the defamation would also need to directly injure you in your profession, trade, or business by imputing to you a general disqualification that the occupation peculiarly requries or by imputing to you something with reference to your trade or business that has a natural tendency to lessen its profit. If the employer communicated with anyone in writing, it would be defamation if the publication exposed you to hatred, contempt, ridicule, or obloquy or which caused you to be shunned or avoided, or which had a tendency to injury you in your occupation.

As you can see from these definitions, a cause of action for defamation does not arise from your personal sense of injury or insult. Rather the cause of action arises from the impact on you by reason of the communication of false information to others and the impact on you from their reaction to that information.

The facts that you describe do not give enough information to determine whether you have a cause of action for defamation. Evaluation of this question would require more information about just what the employer said, how that information was communicated, to whom it was communicated, under what circumstances it was communicated, and what the impact has been on your employment relationships or income.

There is authority in South Dakota for the proposition that communications between interested parties, made without malice, will not support a claim for defamation. That may very well be the case in the context of your employment relationship.

My gut reaction without knowing all the facts is that you would not have a good claim for defamation unless there is some further consequence to you than what you describe.

I hope this is helpful.