Q&As

When can you recover loss of profits for reputational harm? If you can recover loss of profits for reputational harm, how does the court calculate loss of profits, ie is there a specific methodology involved?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 18/12/2019

The following Dispute Resolution Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • When can you recover loss of profits for reputational harm? If you can recover loss of profits for reputational harm, how does the court calculate loss of profits, ie is there a specific methodology involved?

When can you recover loss of profits for reputational harm? If you can recover loss of profits for reputational harm, how does the court calculate loss of profits, ie is there a specific methodology involved?

A claim for loss of profits arising out of reputational harm can be a head of loss in a number of different actions. In defamation it is necessary for a claimant to establish that the meaning of a slander or libel is defamatory at common law but also that its publication has caused or is likely to cause serious harm to the reputation of the claimant (section 1(1) of the Defamation Act 2013). Additionally, bodies that trade for profit must show that serious financial loss has been caused or is likely to be caused in order for ‘serious harm’ to have been caused. This therefore requires proof of actual loss, for example a lost contract.

Claims can be brought for malicious falsehood, requiring the proof of malice and usually special damage—again, such as the loss of a contract or other work.

Claims can also be brought as a result

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