1731. Trade Libel—Essential Factual Elements

Plaintiff claims that Defendant harmed him/her by making a statement that disparaged Plaintiff’s specify product. To establish this claim, Plaintiff must prove all of the following:

  1. That Defendant made a statement that disparaged the quality of Plaintiff’s product/service;
  2. That the statement was made to a person other than Plaintiff;
  3. That the statement was untrue;
  4. That Defendant knew that the statement was untrue/acted with reckless disregard of the truth or falsity of the statement;
  5. That Defendant knew or should have recognized that someone else might act in reliance on the statement, causing Plaintiff financial loss;
  6. That Plaintiff suffered direct financial harm because someone else acted in reliance on the statement;
  7. That Defendant’s conduct was a substantial factor in causing Plaintiff’s harm.