LEGAL PRINCIPLE: EVIDENCE LAW — Defamation — Libel — Trading Corporation — Right of Action
PRINCIPLE STATEMENT
A trading corporation has a trading character, the defamation of which may adversely affect or ruin it. It may maintain an action for libel in respect of words calculated to injure its reputation in the way of its trade or business, with or without proof of special damage.
RATIO DECIDENDI (SOURCE)
Per Iguh, JSC, in Edem & Anor v. Orpheo Nigeria Limited & Anor (2003) NLC-1711999(SC) at pp. 12–13; Paras E–B.
"A trading corporation or company, naturally, has a trading character, the defamation of which may adversely affect and may, indeed ruin it. Accordingly, a corporation or company may maintain an action for libel or slander in respect of any words which are calculated to injure its reputation in the way of its trade or business. This it may rightly do with or without any proof of special damage."
EXPLANATION / SCOPE
A trading corporation has a right to sue for defamation affecting its business reputation. The principle applies to defamation law. No proof of special damage is required. The rule protects commercial reputation. The court may award damages. The principle is well-established.