LEGAL PRINCIPLE: COMPANY LAW — Corporate Personality — Right to Sue for Injury to Reputation and Goodwill
PRINCIPLE STATEMENT
A corporate body can sue for defamation. It has reputation and goodwill which can be protected. An injury to its reputation can lead to loss of its goodwill. Courts will protect a company's reputation and goodwill by award of damages and injunction.
RATIO DECIDENDI (SOURCE)
Per Ogwuegbu, JSC, in Oduntan v. General Oil Limited (1995) NLC-731992(SC) at pp. 9–10; Paras. D–A.
"It is a wrong proposition of the law that a corporate body such as the respondent can only be redressed or compensated for loss of revenue as opposed to intangible losses of goodwill and reputation. A company can sue for defamation. It has reputation and goodwill which can be protected. An injury to its reputation can lead to loss of its goodwill. The courts will in appropriate cases protect the reputation and goodwill of a company by award of damages and injunction."
EXPLANATION / SCOPE
Companies have legal personality and can sue for defamation. They have reputation and goodwill that deserve protection. The principle applies to all corporate bodies. The court may award damages for injury to reputation. An injunction may also be granted. The rule recognises that companies have intangible assets. The principle is well-established in company law. The company may also claim for loss of revenue. The court will protect corporate reputation.