DAMAGE TO GOODWILL. JUDICIAL PROTECTION OF A LEGAL ENTITY’S GOODWILL.
The notion of goodwill is one of the most complex notions in the legal practice. To defend one’s rights and obtain compensation you need a professional lawyer and a proper proof.
Goodwill is part of a company’s market value and is an intangible asset. The image of a legal entity is formed from the information about its business activities. The assessment is given by those who are dealing with the company: counterparties, customers, consumers and partners.
If inaccurate, discreditable information about a company is disseminated, public opinion deteriorates and other adverse consequences appear. These are the factors which cause financial damage.
In court, compensation for damage to goodwill is awarded similarly to moral damages in the case of individuals. The compensation takes tangible form and thus restores the plaintiff’s tarnished business reputation and makes the respondent liable under civil law.
The amount of compensation depends on the proof submitted. Information is recognized as harmful to the goodwill of a legal entity if it:
— is of a discreditable nature;
— is disseminated through public media and becomes known to third parties;
— is made public by a specific person, i.e. the respondent;
— is inaccurate.
If there is no proof for even one of the above criteria, the civil law claim must be rejected.
As described above, damage to and protection of goodwill are tightly linked to public opinion which can be a source of information on how the company is perceived. In a significant number of cases a survey of business partners or consumers is needed to prove that damage has been caused and, more importantly, to properly assess the extent of such damage. A sociological expert evaluation allows determining the extent of the damage that was caused or could have been caused to the goodwill of a company.
Generally, our customers do not intend the disclosure of information regarding their dealings with us in connection with the evaluation of damage to goodwill and, consequently, subject to our code of ethics we do not provide any links to such cases. We suggest that you first use our free services in order to see how we can help you in your particular situation. Based on the result of a pilot survey, it will be easier for you to decide whether or not you should go to court. Examples of using of sociological surveys as evidence in court in other cases may be found here or may be requested through the “Ask a Question” form or by telephone.
See details on “Damage to Goodwill. Judicial Protection of a Legal Entity’s Goodwill. Court Practice”, please call 8-800-500-97-95
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