Etihad Airways, Manchester City’s principal sponsor, is considering legal action against the Premier League over how it communicated findings that do not even name the airline. It raises a question more businesses face than you might expect: what can you do when someone else’s case damages your reputation? Below, we explain when a business can bring a defamation claim without being named, what it must prove and the steps worth taking early.
What has happened?
On 29 September, the Premier League published a redacted decision of an independent commission finding Manchester City guilty of serious breaches of its financial rules between 2009/10 and 2017/18. The club denies wrongdoing and has said it will appeal. Any sanction will be decided separately.
Etihad, City’s principal shirt sponsor since 2009, is not named in the decision. Even so, in a statement the next day it said it “categorically rejects” any suggestion that it was involved in improper commercial arrangements and that the league’s communication of the findings had damaged it. It also says it was never given the chance to respond during the process and that it is now taking legal advice.
Can a business be defamed if it isn’t named?
Yes. The test is whether people who know the surrounding facts would reasonably understand a statement to refer to that business. The House of Lords confirmed this in Morgan v Odhams Press [1971], adding that it makes no difference whether the publisher meant to refer to the claimant, or even knew it existed.
So a business can be identified by its role rather than its name – “the main contractor”, say, or “a supplier to the council”. If customers, lenders or partners would connect the dots, that part of the test may be met. Our guide to businesses and defamation covers the wider basics.
What does a business have to prove?
Identification is only the first hurdle. Under section 1 of the Defamation Act 2013, a statement is not defamatory unless it has caused, or is likely to cause, serious harm to reputation. For a business that trades for profit, that means provable financial loss.
The courts expect evidence, not assumptions. Lost contracts, cancelled orders or a fall in enquiries can all help, so record the impact early. We’ve explained how the courts approach proving serious harm in more detail.
What about reports of someone else’s findings?
Damage often spreads through coverage rather than the decision itself. Under the Defamation Act 1996 (as updated by the Defamation Act 2013), fair and accurate reports of findings by certain bodies – including sports governing bodies and trade and professional associations – can be protected by qualified privilege, a defence that applies unless the publisher acted maliciously.
There is a condition, though. If the business affected asks the publisher to publish a reasonable statement of explanation or contradiction and the publisher refuses or fails to do so, it loses the defence. That request is often a quicker, cheaper first step than litigation and it puts your side of the story on record.
Practical steps if you’re caught in the crossfire
If a statement, report or decision in someone else’s case is damaging your business:
- Act quickly. Claims must generally be brought within a year of publication (section 4A of the Limitation Act 1980), as we noted in Marinakis v Crystal Palace.
- Keep a record. Save what was published, where and when, plus any evidence of lost business.
- Take advice before responding. A measured response, or a request for a correction, often limits the damage; a hasty one can create new problems.
- Review your commercial contracts. Notification, cooperation and reputation clauses in agreements with key partners can give you information and options if a partner comes under scrutiny.
Our view
Whatever the merits of Etihad’s position, its statement is a reminder that reputational risk rarely respects the boundaries of a dispute. The law gives businesses tools to respond, but they work best when used early and backed by evidence.
How can we help?
Kevin Modiri is a Partner in our expert Dispute Resolution team, specialising in privacy disputes, data breach claims and defamation claims. We advise businesses on whether a statement meets the legal test, on securing corrections and published responses and on pre-action letters and claims.
If your business has been affected by a damaging statement or report, please contact Kevin or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online enquiry form.
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