In California, defamation—whether spoken (slander) or written (libel)—is not just an issue of reputation. It can result in significant legal consequences, including economic loss, emotional distress, and long-term professional damage. With lawsuits that may lead to substantial monetary damages and even affect a person's livelihood or a company’s business opportunities, defamation is treated as a serious legal matter.
Understanding the Legal Definition of Defamation in California
California law divides defamation into two categories:
- Libel is written or otherwise permanently published false statements—such as in articles, emails, texts, or online reviews. Because of its lasting and wide-reaching impact, libel is often viewed by courts as more damaging than slander. For instance, a blogger falsely accusing a restaurant of using expired ingredients, causing a drop in sales, could be liable for libel.
- Slander is a spoken false statement. Since it is fleeting in nature, plaintiffs must typically prove actual harm—except in four specific categories where damages are presumed. These include false accusations of:
- Criminal conduct
- Having a contagious disease
- Professional incompetence
- Immoral behavior (particularly targeting women)
Spreading false corruption rumors about a company executive at a business convention, for example, may constitute slander per se, meaning harm is presumed without the need for further proof.
Defamation Per Se vs. Per Quod
- Defamation Per Se refers to statements that are clearly damaging on their face (e.g., allegations of criminal acts or professional misconduct). Plaintiffs do not need to show actual damages.
- Defamation Per Quod requires plaintiffs to prove the harm caused by the statement, such as lost income or job offers.
Time Limits: The One-Year Rule
California imposes a strict one-year statute of limitations for filing a defamation claim, as outlined in California Code of Civil Procedure § 340(c). Under the Single Publication Rule, the clock starts ticking from the date the statement was first made public—even if it's reposted or reshared later.
However, under the Discovery Rule, this time limit may begin when the plaintiff first discovers (or reasonably should have discovered) the defamatory statement. This applies to cases where the defamation is concealed, such as false records in a confidential personnel file.
Types of Damages in Defamation Cases
Victims of defamation may seek up to three categories of damages:
- General Damages – For intangible losses such as harm to reputation, shame, and emotional distress. Courts may consider the reach of the statement and the social standing of the plaintiff.
- Special Damages – For tangible, documentable economic losses such as lost contracts or salary from a rejected job offer. Plaintiffs must present evidence like financial records or customer testimony. One notable case awarded $3 million to a construction firm falsely accused of using substandard materials, costing them a government contract.
- Punitive Damages – Awarded when the defendant acted with actual malice or reckless disregard for the truth. For example, a content creator knowingly publishing false claims that a food product contains cancer-causing substances may face punitive damages in addition to compensatory ones.
Legal Defense and Preventive Strategies
For potential plaintiffs, it is crucial to act quickly:
- Preserve evidence (e.g., screenshots, voice recordings)
- Send a Cease and Desist Letter
- File suit within the one-year window
Businesses should also adopt internal policies to prevent defamatory statements from employees that may trigger liability.
For defendants, responses may include:
- Demanding specifics of the alleged defamatory statements
- Asserting constitutional or privilege defenses (such as fair comment or opinion)
- Filing an Anti-SLAPP Motion if the lawsuit is intended to silence free speech
Note: Most insurance policies do not cover intentional defamation, but some Commercial General Liability (CGL) policies may cover negligent statements made in the course of business.
Why Legal Counsel Matters
Defamation law in California requires a careful balance between freedom of speech and protection of reputation. Whether you’re protecting your name or defending your words, every case demands precision in evidence gathering, timing, and defense strategy.
For public figures, such as politicians or celebrities, prevailing in defamation suits requires proving "actual malice"—a notably high standard. For corporate officers pursuing claims against former employees, it’s vital to consider the risk of a retaliatory Anti-SLAPP motion.
At the Law Offices of Paul P. Cheng, our litigation team offers comprehensive defamation representation—from cease-and-desist strategy to courtroom litigation. With extensive courtroom experience and a sharp understanding of media law, we provide tailored legal strategies to protect your name and business reputation.
If you believe your reputation has been harmed, or if you're facing defamation claims, contact us for a confidential consultation.
Your rights deserve strong advocacy.
Paul P. Cheng, Esq. is a seasoned trial attorney, former Deputy City Attorney, and founder of the Law Offices of Paul P. Cheng. He frequently represents clients in high-stakes civil litigation and has been featured in numerous legal publications for his work in defamation, employment, and commercial law.