What Happens in a Lawsuit for Libel or Slander?

In a lawsuit for libel or slander, also known as a defamation lawsuit, a person or a business alleges that they were harmed by a false statement made by another party. While the terms are often used interchangeably, libel is a written or broadcast false statement, while slander is a spoken false statement. A lawsuit for libel or slander can be a financially and emotionally draining experience, and it is one of the most common types of lawsuits that a business or an individual can face.

A lawsuit for libel or slander begins when the plaintiff (the person who was harmed) files a complaint against the defendant (the person who made the false statement). The plaintiff must prove that the defendant made a false and damaging statement, that the statement was published to a third party, and that the statement caused the plaintiff to suffer harm. The harm can include a loss of income, damage to their reputation, or emotional distress.

Once the lawsuit is filed, the defendant will be served with a summons and a copy of the complaint. At this point, the defendant must hire an attorney and begin the process of defending themselves in court. The legal process can be long and expensive, and it will include a series of steps:

• Discovery: Both parties will exchange information, including documents, emails, and witness testimonies.
• Depositions: The parties will interview witnesses under oath.
• Mediation: The parties may attempt to settle the lawsuit out of court.
• Trial: If the lawsuit does not settle, it will proceed to a trial, where a judge or a jury will hear the evidence and issue a verdict.

Without a liability insurance policy, a person or a business would be financially responsible for all of the legal defense costs and any resulting damages. However, a liability policy, such as a Commercial General Liability (CGL) policy for a business or a personal umbrella liability policy for an individual, will provide a crucial safeguard. A liability policy will cover the legal fees and any settlements or judgments that result from a lawsuit for libel or slander.

A lawsuit for libel or slander can have devastating consequences for a business or an individual, including a loss of reputation, a loss of income, and a financial judgment that can lead to bankruptcy. The best way to mitigate these risks is to be careful about what you say or write about others and to have the right insurance policy in place. A liability policy is not just a safeguard against a physical accident; it is also a vital protection against the high costs of a defamation lawsuit.