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Injurious falsehood is defined as a fallacious statement, either written or spoken, that causes intentional damage to a business’ commercial or economic relations - pecuniary loss or “actual damage” to a business. It is a civil wrong which belongs to the torts family.

Defamation and Injurious Falsehood are both concerned with the protection of reputation, either of an individual (defamation) or of a business entity (injurious falsehood). In Australia, both are based on a collection of Common Law Torts and state legislation including the Defamation Act 1974 (NSW).

An action in injurious falsehood is distinguished from an action in defamation, although the actions of injurious falsehood and defamation share similarities.

An Injurious Falsehood claim may be available if the person who is the subject of the statement can prove the following four elements of the tort:

1)      The statement was published to someone other than the plaintiff;

2)      The plaintiff must prove that the statement was “false”;

3)      The plaintiff must prove that the statement was “malicious”; and

4)      The plaintiff must prove that “actual damage” was the natural and probable consequence of the publication of the false and malicious statement.

At Navado, we are able to advise our clients of the legislative restrictions on companies bringing defamation actions and also advise whether an action in misleading or deceptive conduct may concurrently exist.

If you require assistance regarding Injurious Falsehood, you should make an appointment to see one of our solicitors. Please contact us by telephone on (02) 9233 4048 or send an email to info@navado.com.au.

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