Have I been slandered?

[Centexcoog]

What is the name of your state? Texas

Background: I worked for a locally-owned company for 20 years until I resigned last July to pursue other opportunities. I served in an upper management role and worked for the owner.

Problem: Last week I received a call from a former employee of mine who had just received a call from a current employee. Current employee had just got out of a meeting with the company owner, and said that he was convinced that I had been stealing from his company while I worked there.

My side: I never stole a dime from the company, and I don't know where he's gotten his information. The reason I left the company is that it is failing, and has been insolvent for the last two years. The company owner is an egomaniac, and doesn't take responsibility for his actions (he owns 100% of the company). The main reason for the financial failure of his company is that he filed suit against another company and spent millions of dollars on the lawsuit. He also has made tactical mistakes for at least the last five years that caused sales to drop to 20% of what they were just a few years ago.

Question: How should I react? Has he committed slander? Do I have to prove specific damages if I file suit? I'd sue him personally, and he does have assets that I could go after other than his protected homestead.

Any input would be greatly appreciated!

 

[BelizeBreeze]

What is the name of your state? Texas

Question: How should I react?

That's a personal decision

Has he committed slander?

That's a question of fact for a judge/jury.

Do I have to prove specific damages if I file suit?

Yep, sure do, unless you're famous or a public figure.

 

[Centexcoog]

Thanks Belize...

I appreciate your comments.

Does something have to have already occurred in order to be considered as damages? In other words, do I have to have potential clients testify that they didn't hire my consulting services because they were concerned about my honesty? Can't I demonstrate that my future earnings potential has been damaged, and project damages?

Thanks again.

 

[seniorjudge]

Q: Does something have to have already occurred in order to be considered as damages?

A: Yes, you would have to prove actual damages, not speculative damages.


Q: In other words, do I have to have potential clients testify that they didn't hire my consulting services because they were concerned about my honesty?

A: If you could prove this, there may be actual damages.


Q: Can't I demonstrate that my future earnings potential has been damaged, and project damages?

A: This is usually done in personal injury cases; I frankly am not sure how you would prove this in an intentional tort case. You could certainly try.

 

[Centexcoog]

Lying boss...

Thanks for your insight, seniorjudge.

My take on this is that my former boss can say what he wants about me, but unless I can demonstrate financial damages to the satisfaction of a jury, there are no consequences for his remarks that I stole money from his company. Since he knows that he's made the comments to people that used to work for me, and not future clients, the damages will never occur.

It doesn't seem right that he can feel free to lie about me, and not worry about any consequences.

 

[seniorjudge]

Thanks for your insight, seniorjudge.

You are welcome.

 

[badapple40]

If this were written, this would be a defamation per se case. However, I think, if I recall correctly, because it was spoken, you have to prove actual damages. At least in the libel world, words tending to injure a person in his profesion or trade are actionable without proof of actual damages, and damages are presumed. He has also alleged that you committed theft an act that is punishable as a felony and is thus similarly defamation per se if it were written. Some states abolish the distinction. You may want to see a local attorney.

You have the burden to prove truth. Assuming you can, have at him.

If you can prove that he made the statements without any basis whatsoever, then you get into knowingly false/reckless disregard of the truth, and punitive damages.

Have fun.

 

[rmet4nzkx]

If you were to sue and win would you be able to collect if the company is failing?

 

[Centexcoog]

Centexcoog

Thanks, badapple40!

I do feel that his comments are without basis, so maybe that's where I'll head with this. His comments have so far just been verbal--nothing that he would put down on paper. Now email, that's where I may discover more; but at a cost that's more than it's worth if I have to prove damages. I don't know how I'd obtain his email correspondence without filing and then discovery. I really appreciate your thoughts on this--I'll keep thinking about it.

To rmet4nzkx: I thought about that as well, and would sue him personally.

 

[meganproser]

When did Texas change the statute? They were still recognizing presumed damages in defamation per se as of 2002.

I couldn't find a copy of the actual opinion on line, but I found an article that summarizes it: http://www.gaycitynews.com/gcn32/notthat.html

From Texas Court of Appeals, San Antonio Division, as articulated in an opinion by Justice Karen Angelini released on December 18, 2002.

"Justice Angelini found that the trial court erred by accepting Bynum’s argument that Thomas failed to show any actual damages as a result of being called “*****.” Normally, a plaintiff is required to allege that they suffered actual economic losses as a result of name-calling in order to bring a slander action, but courts have traditionally treated certain words as automatically damaging. Among those are words falsely suggesting that the target of the statement is a criminal."

Presumed damages aside, perhaps the following will settle this question of proving damages in defamation cases:

In Dun & Bradstreet, Inc.v. Greenmoss Builders, Inc., 472 U.S. 749, 759 (1985), the Supreme Court broadened the definition of Actual Damages; it no longer is limited to a showing of financial loss or loss of something of value; it may include humiliation or emotional distress.

Finally Centexcoog, the company could have insurance for a law suit such as this.

 

[seniorjudge]

Finally Centexcoog, the company could have insurance for a law suit such as this.

Please name one insurance carrier that issues insurance covering intentional torts.

 

[badapple40]

Please name one insurance carrier that issues insurance covering intentional torts.

CNA, Travelers, AIG, etc. etc. etc., they consider them advertizing torts and do cover libel/slander.

 

[Centexcoog]

Centexcoog

meganproser,

Thanks...great research performed on your part. Obviously, I like the fact that I may not have to prove actual damages. And I know the company is required by certain vendors to have a General Liability policy for a minimum of $2,000,000. As mentioned in other comments, I don't know whether or not that's part of the coverages. The owner probably carries a personal umbrella policy which may benefit me as well-so maybe both the company and he would be named if a suit is filed.

Another question that I have is this: Am I required to notify him formally that I think he has slandered me, or can I just file a suit and surprise him with it?

Thanks for continuing to comment regarding my questions!

 

[seniorjudge]

meganproser,

Thanks...great research performed on your part. Obviously, I like the fact that I may not have to prove actual damages. And I know the company is required by certain vendors to have a General Liability policy for a minimum of $2,000,000. As mentioned in other comments, I don't know whether or not that's part of the coverages. The owner probably carries a personal umbrella policy which may benefit me as well-so maybe both the company and he would be named if a suit is filed.

Another question that I have is this: Am I required to notify him formally that I think he has slandered me, or can I just file a suit and surprise him with it?

Thanks for continuing to comment regarding my questions!

It is fairly clear that in most cases there will be no coverage for the employee's individual liability for his own intentional torts.

http://www.haynesboone.com/knowledge/knowledge_detail.asp?groupid=all&page=pubs&pubid=575

This article deals with an employee's coverage under an employer's liability policy for intentional torts. But, apparently, in Texas, there is no coverage for an employer's intentional torts under a general liability policy.

 

[stephenk]

all you have is one former employee telling you he was told by someone else that your former boss said you stole. Did the person who heard the statement believe it? If yes, does it matter that this person believes the statement? What proof do you have that your former boss said the statement to anyone else?