Libel Suits: Will Small Claims Court Accept Your Suit?

What is Libel?

Libel is one of two forms of defamation most commonly associated with civil lawsuits. It can be defined as any untrue written or published statement that causes harm to the reputation of an individual, business, or entity. Because the spoken form of defamation is slander, often the two terms are used interchangeably, but legally, they are separate forms of defamation and are treated as such during a civil case.
Although you might think that libel cases are prevalent, they have relatively low success rates. For example, figures show that only about 2 percent of civil lawsuits are successful in court. While libelous statements have been made across all types of literature and digital resources, journalists are often the most named defendants in libel cases.
As noted above , most libel cases do involve a written or printed statement. Although a statement made on a website, blog, or even social media can be liable for libel charges, inferring that a person did something wrong or associating them with a certain group, can also result in a libel accusation. Libel has long been a form of defamation, dating back to centuries ago when writers were prosecuted for their content.
The legal system has attempted to put a variety of libel proofing systems in place for the past several decades, and several programs have claimed to be successful. These systems included state-run bodies, other regulatory bodies, and programs controlled by libel plaintiffs themselves. However, these programs have fewer visible means of recourse.

Small Claims Court Authority

Small claims court was created as a simplified court for individuals to bring low-dollar amount claims to seek compensation. To help navigate this process, the small claims court provides a handbook covering the basic information needed to pursue a claim. Your small claims booklets are available in the clerk’s office of your local district court, or you can find it online. The District Court of Maryland also has a guide available online.
Small claims court is limited to awarding money judgments of $5,000 or less. Not only must your claim fall within this jurisdictional limit, but it is also important to consider the practical implications of bringing your case in small claims court when seeking money damages. Specifically, the value provided by certain damages may exceed the jurisdictional limit. For example, cases for specific performance of a business contract may be barred because the damages would amount to more than $5,000, but you cannot bring your claim to small claims court because the court does not have the power to order specific performance.
The jurisdiction of small claims court is not limited to monetary claims alone. Pursuant to the "Uniform Commercial Code" (UCC) and other statutes, small claims courts are given jurisdiction to adjudicate certain types of non-monetary disputes and actions affecting property rights. For example, you can seek to foreclose an equitable lien in small claims court by filing an action called a "Bill in Equity." Such an action may be filed when a contractual agreement places a property in the possession of the other party. A Bill in Equity seeks a court order that returns possession of the property to the plaintiff and transfers the ownership interest in the property to the plaintiff to prevent an unjust result.
Q: Can I file a libel or slander case in small claims court?
A: No. Cases alleging damage to your reputation or claiming defamation are governed by the courts of general jurisdiction and may not be brought in small claims court.

Can I Sue for Libel in Small Claims Court?

Despite the speed and formality of the general Ontario Small Claims Court process, defamation and libel cases have been successfully litigated there, and are not automatically dismissed for want of jurisdiction. Such cases may meet the requirements of the Small Claims Court with respect to simplicity, the question of fact nature, the amount of damages sought, and the low cost of $150 per hearing. Readers should consider the following small claims court case law on the possibility of suing there for libel:
Friesen v. First Choice Courier System, 2004 CanLII 46734 (ON SC) In this case, the plaintiff sued a courier company, claiming that one of its drivers had made false statements that were damaging to the Plaintiff’s reputation, and in circumstances to support an award of punitive and aggravated damages. The presiding judge was inclined to exercise territorial jurisdiction to allow to case to proceed subject to later review (or, perhaps, appeal) as to whether or not he should have done so. The question was deemed to be unresolved in some of the cases that had considered it generally; while the decision was made to allow the case to proceed subject to appeal, the presiding judge noted that "…The issue is not a simple on, and I express no opinion as to whether this action is or is not one that a Small Claims Court would take jurisdiction over."
Brown v. Bennett, 2002 CanLII 14629 (ON SC) The Plaintiff did not set out that the Defendant had defamed him, and that was a short coming of the Statement of Claim. However, later on, in the Plaintiff’s affidavit sworn to confirm the Statement of Claim, there were allegations of defamation. Further, the Plaintiff claimed that the representations complained of by the Defendant in their defence, amounted to defamation. The Defendant claimed the defence of qualified privilege (meaning they had no reason to know that the representation was not true), and that they had not libeled the Plaintiff and had acted responsibly and in good faith in making the representation. While the presiding judge considered the claims of defamation a "signifacant complicating factor", the case was nonetheless deemed to be one of simple procedure, location and subject matter, and hence, properly triable.

Process of Claim

When the decision is made to sue for libel, initiating the action is like starting any other lawsuit. The plaintiff must file a complaint against the defendant in a court of competent jurisdiction. A lawsuit for libel may be filed in a Small Claims Court in certain jurisdictions, which usually limit recovery to a couple thousand dollars. Different states have different limits that determine whether a specific action may be filed in a Small Claims Court or a regular trial court. In most cases, when determining jurisdiction based on the amount of the recovery that the plaintiff is seeking, the plaintiff need not have the exact amount in mind when the action is filed. As long as enough damages are pled to fall within the jurisdictional limits for the Small Claims Court, the fact that the plaintiff recovers less than the jurisdictional amount will not preclude the recovery.
The defendant should be served with a copy of the summons and complaint. Many locations have an additional process beyond the sheriff’s service to facilitate service upon a defendant. Sometimes this additional service involves the defendant being sent the summons and complaint with an appropriate cover letter by registered or certified mail , return receipt requested. The defendant can be asked to sign the return receipt and send it back in a prepaid envelope, or simply have the return receipt sent back unopened. In some locations there is also a process similar to the old "tag" jurisdiction that involves service on the defendant wherever he or she may be. That is often accomplished by handing the summons and complaint to the defendants’ employer and requesting the employer to bring the summons and complaint to the defendant’s attention within a few days.
The defendant may file an answer to the complaint. In some cases there may be a counterclaim filed by the defendant. Often the defendant’s counterclaim, if any, will also request damages.
The defendant will also have the right to make discovery requests upon the plaintiff.
Depending on local court rules, there may be various other procedures applicable.

Potential Outcomes and Alternatives

After filing your claim, you will receive notice of your trial date in Small Claims Court. If the defendant appears and presents a successful defense, your case may be dismissed. The defendant could also present evidence that the defamatory statement is indeed true. While truth is an absolute defense against a defamation claim, the truth must be more than "substantially correct" to win. Because of First Amendment protection that allows individuals to express themselves freely, courts have also recognized a policy against awarding excessive damage awards. A public figure must prove by "clear and convincing" evidence that the defendant published the false statement to a third party with a high degree of knowledge that the statement was false. It is unlikely that the plaintiff will bear the burden of proof successfully in small claims court, as there is not as much of a public interest at stake, because it is not a matter of public concern. An experienced libel defamation attorney can help you navigate through the process.
You may want to consider several other alternatives to pursuing your claim in court. Depending on the speed of the process, you might find that local, state, or federal authorities already have a process in place for the review of libel and slander claims. A cease and desist letter may be all you need to begin to have the defamatory statements removed. You might also consider using the trust and mediation system. In mediation, you and a neutral third-party mediator discuss any disputes in order to come up with a resolution. Even if the mediator is unable to completely resolve the issue, you still have the option to go to court. While not always possible, contacting the original publisher might be an option. You may also want to consider bringing the issue to the attention of various internet watchdog agencies and voluntary agencies.

Get Legal Help

Not every small case is worth taking to Small Claims Court, including small libel claims. Hiring a lawyer is the best way to ensure that your case gets a fair hearing, especially in light of the extreme complexity of the legal rules at play. Libel is not simply a case of who can afford the most expensive legal team.
Here are just a few reasons why consulting with a legal expert is necessary before suing for libel. An experienced attorney will be able to tell you whether you have a case worth pursuing, help determine the viability of a suit against a particular person or organization, and set realistic expectations for your case.
A lawyer won’t necessarily cost as much money as you think. Libel cases don’t always require immediate up-front payment. Instead, a lawyer might take your case on contingency or have some other reasonable payment plan to follow. That’s actually a big factor in determining whether a client should be suing at all, because if he can’t pay legal fees now, it means that he is saddled with the case for the foreseeable future . It’s equivalent to living in a house with an unpaid mortgage.
Lawyers also come with useful skill sets: persuasion, negotiation, mediation, settlement proposals, and litigation. But before they ever pick up a phone or argue in court, they first take some time to think through their options and strategize a course of action. This is usually done through a series of meetings and discussions with the client or clients, to discuss the potential pros and cons of different avenues of litigation and/or conflict resolution. These are not decisions that lawyers make on their own. Lawyers work closely with their clients to develop a long-term strategy, and guide them through each step of the process.
Libel cases are also time-consuming, both in and out of court. Clients can often expect pre-Trial proceedings and paperwork to last months, if not years. If the case goes to Trial, a whole new set of challenges arise. Unless you’re prepared to dedicate yourself for many months to the idea of pursuing justice and vindication, hiring a lawyer may be the best option.