Been following the Webster Bank/McMahon dispute?
McMahon claims that her opponent, Chris Murphy, received a sweetheart deal from Webster Bank because of his political connections. Murphy then voted in support of a federal bank bailout that ultimately benefited Webster.
Webster for its part has vehemently denied McMahon’s accusations.
Can Webster sue McMahon?
Yes – but it would be difficult to prevail.
The cause of action would be a very specific type of defamation: trade libel or commercial disparagement.
The general elements of such a claim are:
- The statement is false;
- The publisher (person making the statement) intends to cause financial loss or reasonably should know that the statement would result in financial loss; and
- The statement causes financial loss.
The last prong would be very challenging to establish. How has Webster suffered financial loss? Would they be able to show that McMahon’s statements caused a decline in profits? The number of mortgage applications? Decreased revenue? All of this would have to be directly related to the McMahon claim.
Very tough.
Below is a recent Connecticut Post article on the topic.
I am quoted on page 2. Shameless self-promotion for sure.
Webster Bank demands McMahon retract claims – Connecticut Post