Legal Updates

Publishing contention in a legal dispute to entities that are not parties to the dispute may be deemed defamation

May 20, 2019
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Two business partners were involved in a business dispute and decided to dissolve their partnership. In the course of their dispute, one of the parties began to update the employees of the other party, its other business partners and service providers, while making allegations of fraud, embezzlement, forgery of documents, and more.
The Court accepted the case and held that the fact that a legal proceeding was being conducted did not constitute a defense. The fact that abusive exchanges between parties are carried out in the framework of a business dispute, even those that have a great public interest, does not allows publications that constitutes defamation and vice versa, when dealing with a businessman, his reputation enable him to conduct in the business world. The publication of defamation to parties that are not a direct party to the conflict and who do not serve the purpose of the contact, such as employees, lawyers, accountants or banks connected with the same business entity, constitutes defamation entitling the victim to compensation prescribed by law.