Project44, Inc. v. FourKites, Inc.
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In a lawsuit between two competitors in the shipping logistics industry, Project44, Inc. and FourKites, Inc., Project44 alleged that FourKites agents sent defamatory emails to Project44's chief revenue officer and two members of its board of directors. FourKites argued that there was no publication to a third party because the emails were sent to members of the corporation who were, in effect, the corporation itself. The Cook County circuit court agreed with FourKites and dismissed Project44's complaint for failure to state a claim. On appeal, the appellate court reversed the decision, and the case was remanded for further proceedings.
The Supreme Court of the State of Illinois affirmed the decision of the appellate court, holding that there is publication to a third party when an allegedly defamatory statement is communicated to a member of a corporation’s executive leadership team. It was determined that a corporation has a distinct reputation from that of its management-level employees and an interest in protecting that reputation among its employees and the public at large. Therefore, defamatory statements made to corporate employees, even those with the power to act on behalf of the corporation, can harm the corporation’s business reputation among those employees. Communication of a defamatory statement regarding the corporation to these employees establishes the publication element for a defamation action brought by the corporation against the party that publishes the statement.
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