Business Defamation — a Claim Against False Facts
Defamation means direct monetary loss for a business: lost clients, cancelled contracts, damaged partnerships. The Georgian Civil Code gives this situation full judicial protection, and this page explains how a business-defamation claim is built: what the company demands, on which grounds, and how the false fact and the damage are proven. Every provision on which this page rests comes directly from the text of the Code.
The Legal Basis — What the Code Protects
The legal basis consists of three provisions. Article 18 of the Civil Code governs personal non-property rights: a person is entitled, through the court and in the manner established by law, to protect his honour, dignity, privacy of personal life, personal inviolability or business reputation from infringement. Where infringing statements have been disseminated through mass information media, their refutation must take place through the same media; where such data are contained in a document issued by an organization, the document must be replaced and interested persons informed. The injured person is also entitled to publish a reply in the same media.
Refutation, Reply and Correction of Documents
Under the same provision, the protection of this good operates regardless of the infringer's fault; where the violation results from a culpable act, the person may claim compensation for damage, including in the form of the profit the infringer obtained, and also compensation for non-pecuniary (moral) damage — independently of pecuniary damage. Where authorship or name is misused, the person may demand that the infringer cease the act; publication of a person's image without consent is likewise recognized as an infringement, subject to enumerated exceptions.
Grounds for Compensation of Damage
Article 992 sets the general ground: a person who, by an unlawful, intentional or negligent act, causes damage to another person is obliged to compensate it. Article 993 addresses pecuniary damage caused by defamation specifically: a person who intentionally or negligently disseminates or publicizes facts bringing pecuniary damage to another person must compensate the resulting damage if the facts are clearly incorrect. No obligation arises with respect to statements serving the protection of lawful public interests — this boundary sets the balance between free expression and the protection of reputation.
The practical conclusion is simple: there are two levels of protection. The first — the demands of cessation, refutation and correction — does not depend on the infringer fault and gives the injured party a rapid result. The second — monetary claims — requires culpability: pecuniary damage, profit and moral damage. Each level calls for its own evidence: without fault the first level works, while the second requires full-fledged court litigation. That is why the injured party must fix all circumstances in a timely manner and deploy the legal instruments before the evidentiary base erodes and the scale of the damage grows further. Finally, the Code recognizes authorship and the right to bear a name as objects of protection too: a person whose right to bear a name is infringed, or whose interests are infringed by unauthorized use of the name, may demand that the infringer cease the act — a norm that protects the commercial value of a name as well.
What the Company Demands in the Claim
When false facts are disseminated, the company's claims run in several directions: refutation of the infringing statements through the same mass medium through which they were disseminated; publication of a reply; cessation of the infringing act where the harm continues; and, in case of culpability, compensation of pecuniary damage — including in the form of the profit obtained by the infringer — and even compensation of non-pecuniary damage. Where the infringement stems from a document issued by an organization, the company may demand replacement of the document and notification of interested persons.
Two things are decisive in terms of proof: establishing the factually false content and demonstrating the damage and causation. That is where cases are won: a statement that is an assessment rather than an assertion of fact belongs to a different category; a defamation claim is built on false "facts", and under Article 993 compensation arises only where the facts are clearly incorrect.
Frequently Asked Questions
What is the difference between a fact and an assessment?
Article 993 covers false facts — concrete, verifiable assertions. A subjective assessment is not subject to the defamation norm in the same way, though presenting an assessment as fact is different.
Can a company claim moral damage?
Yes — with culpable infringement, compensation of non-pecuniary damage is claimed independently of pecuniary damage, and business reputation is a good protected by Article 18.
How does refutation take place?
Statements disseminated through mass media must be refuted through the same media; the injured person is also entitled to publish a reply.
What is exempt from liability?
Statements serving the protection of lawful public interests — a boundary essential for the protection of freedom of expression in each individual case.
How We Help on Legal.ge
The Legal.ge team conducts business-defamation cases: drafting claims with every available demand — from refutation to disgorgement of profit — preparing evidence, and analysing the factual nature of the statements. Contact us for an assessment of your case grounded in the Code's specific provisions.