defamation of character?

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cldbwin

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My family owned a business which suffered due to mis-management after many years. My son, who was an employee and minor shareholder, with no fiduciary responsiblity, became involved as manager on premises by default. The business was falling deeper in debt due to the inability to make improvements, and some rent payments were not made. My son's name was not on the lease, which had expired. He continuously attempted to "catch-up" and make payments, but the business coudn't support itself. My son & the landlord held several meetings during which my son was encouraged by the landlord to sign a new lease in his own name, close the existing business and then re-open as sole proprietor. Due to the family "situation," this was deemed legal & we were led to believe (by the landord) that the situation could be worked out. At the same time, the landlord was meeting with our opposing family members who intended to sell the business to an outside party, then to my son for dollar amount greater than the value of the business. We had secured an attorney and were seeking a way to reconcile all the differences. When it became evident that there was no solution, my son walked away from the business. The new lease agreement was never settled and therefore, never signed. My family members held an auction & sold the assests with the cooperation of the landlord. My son, legally, had no responsibility to any of the parties as he was merely an employee.

Now, several months later, my son has been faced with ugly rumors which were begun and perpetuated by the landlord. He is a somewhat well known person in the community as he owns a local tavern. He has told people that my son was responsible for the failure of the business. He also has told many people that my son owes him a lot of money in back rent. I will once again state that my son's name was not on the lease, and he never received any money from the asset sale of the business which my family member (the major shareholder & signer of the former lease) kept for himself.

The false statements made about my son, by the landlord, have done damage to his reputation and will certainly cause harm to his ablility to work in the area. His friends and his wife's family have heard the rumors, and have been told that the landlord is the source. He is a source of local gossip & is embarassed by the false statements.

Is this considered defamation of character? Is it slander? What recourse do we have?

Thank you for listening
 
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