An ex-employee, whether in an attempt to gain a customer’s business or to harm a previous employer, may be tempted to “badmouth” a former employer by spreading rumors and making untrue statements about the former employer to others. Not so fast, warns employment lawyer Keith Clouse.
In Texas, an individual can be held liable for the tort of business disparagement. This tort allows a company to recover damages from a person who spreads falsehoods about the company. To prove a claim for business disparagement, a company must show that: (1) an individual published disparaging words about the company’s economic interests; (2) the words were false; (3) the individual published the words with malice; (4) the individual published the words without privilege; and (5) the publication caused special damages, such as the loss of sales or credit. If a company can prove these elements, the company can recover economic damages. A company may also recover exemplary damages. Exemplary damages are designed to punish the individual for his actions.
To speak with Mr. Clouse or another attorney at a Dallas employment law firm, please contact the employment law lawyers at Clouse Dunn Khoshbin LLP at [email protected].
