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Libeling Lawnmowers

BY Brian H. Corcoran
April 28, 2006

Is it possible to defame an inanimate object such as a plane, or a house, or a painting? Surprisingly, the answer to this question is 'yes.' This sort of claim, which is generically captured by the designation 'commercial disparagement,' has, on occasion, been pursued successfully at trial involving 'hard' assets and can even be employed when the damages are more prospective than actual. The tort falls generally within the penumbra of libel and slander-related claims, but has been overshadowed by the more commonly recognized types of claims asserted against individuals or corporate entities rather than tangible objects. Commercial disparagement claims, when understood, are a useful line of defense to an asset owner ' as well as a hazard for those unaware of the claim's contours.

The Restatement of Torts on Commercial Disparagement

Section 624 of the Restatement of Torts offers an outline that many jurisdictions have embraced as determinative on the topic of injurious falsehood. It states that liability arises for the (a) publication of a false statement disparaging another's property rights in land, chattels or intangible things, which (b) the publisher should recognize as likely to result in pecuniary harm to the other through the conduct of third persons in respect to the other's interests in the property. Any kind of legally protected interest in land, chattels, or intangible things may be disparaged, so long as the interest is transferable and therefore salable or otherwise capable of profitable disposal. The form of publication may be as a statement of fact; a statement in the form of an opinion is not actionable as defamation unless it is held to imply the existence of undisclosed defamatory facts that justify the derogatory opinion. Finally, the statement must be published under such circumstances as would lead a reasonable person to expect that the third person who has acted or refrained from acting in reliance upon the statement would do so or that its publication might deter some third person from buying or leasing the property that is disparaged.

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