Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm News

Damages in Defamation Suits Restricted by NJ Supreme Court Ruling

Author: Joel N. Kreizman

Date: June 12, 2015

Key Contacts

Back

The Supreme Court of New Jersey recently held that plaintiffs in a defamation suit couldn’t recover both actual and presumed damages.

The Supreme Court of New Jersey recently held that plaintiffs in a defamation suit couldn’t recover both actual and presumed damages. The case is NuWave Investment Corp. v. Hyman Beck & Co.

The Facts of the Case

Plaintiffs Troy Buckner and John Ryan, who served as principles of NuWave Investment Corporation (NuWave) filed a New Jersey defamation suit against First Advantage Litigation Consulting, LLC, formerly BackTrack Reports, Inc. (BackTrack), regarding the content of background investigative reports prepared for clients considering investment opportunities. The reports on Buckner, Ryan and NuWave included many statements attributed to Hyman Beck & Company (Hyman Beck) and its employees, Alexander Hyman and Richard DeFalco, all of whom were also named as defendants in the suit.

The plaintiffs’ initial complaint asserted various causes of action, including trade libel and defamation, against all defendants. Summary judgment proceedings and dismissals left only the defamation claim against BackTrack for trial. The jury found BackTrack liable and awarded the following amounts as “presumed damages”: $1 million (NuWave), $150,000 (Buckner); $50,000 (Ryan). The jury further determined that NuWave suffered $1.406 million in “actual damages” as a proximate result of BackTrack’s defamatory statements, but neither Buckner nor Ryan suffered actual damages.

>On appeal, the Appellate Division agreed with the trial court that the challenged statements were largely defamatory, but determined that a jury cannot award both presumed nominal damages and other “actual damages.” Its decision largely relied on W.J.A. v. D.A., 210 N.J. 229 (2012), a decision entered while the appeal was pending in which the New Jersey Supreme Court confirmed the limited role of presumed damages.

The Court’s Decision – Damages in Defamation Suits

The New Jersey Supreme Court upheld the Appellate Division’s decision. As explained by the court, “Presumed damages is a procedural device that allows a defamation case to go to the jury in the absence of proof of actual damages. If the jury finds the statement defamatory, without proof of actual damages, only nominal damages can be awarded. Presumed damages may not be awarded in any higher amount.

In reaching its decision, the court clarified the distinctions between actual, punitive, and nominal damages with regard to defamation suits. As explained by the panel:

Actual damages can include harm caused by “impairment to reputation and standing in the community,” along with personal humiliation, mental anguish, and suffering to the extent that they flow from the reputational injury. All compensatory damages, whether considered special or general, depend on showings of actual harm, demonstrated through competent evidence, and may not include a damage award presumed by the jury. By way of contrast, “nominal” damages, including those that may be presumed, are not to be awarded as compensation and are not appropriate when compensatory damages are otherwise available to the plaintiff.

Because the court deemed it was “unclear whether the entirety of the jury award was influenced by the inadequate instruction on the proper roles of the various categories of damages and the circumstances under which they are available to plaintiffs,” it remanded the case for a new trial on damages.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Scarinci Hollenbeck Attorneys Named to New Jersey Super Lawyers 2026 post image

Scarinci Hollenbeck Attorneys Named to New Jersey Super Lawyers 2026

Scarinci Hollenbeck Attorneys Named to New Jersey Super Lawyers 2026 and Rising Stars Lists Scarinci Hollenbeck is pleased to announce that several of its attorneys have been selected for inclusion in the New Jersey Super Lawyers 2026 and Rising Stars lists. The annual recognition highlights attorneys who have attained a high degree of peer recognition […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Scarinci Hollenbeck Attorneys Named to New Jersey Super Lawyers 2026"
Donald M. Pepe and Donald Scarinci Named to 2026 ROI-NJ Influencers: Law List post image

Donald M. Pepe and Donald Scarinci Named to 2026 ROI-NJ Influencers: Law List

ROI-NJ Continues to Feature Donald Scarinci and Donald M. Pepe on Annual Influencers in Law List Donald M. Pepe and Donald Scarinci of Scarinci Hollenbeck have once again been named to ROI-NJ’s 2026 Influencers: Law List, recognizing attorneys who continue to shape New Jersey’s legal and business landscape. The annual list highlights legal professionals whose […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Donald M. Pepe and Donald Scarinci Named to 2026 ROI-NJ Influencers: Law List"
Monmouth Bar Golden Gala Honors Two Scarinci Hollenbeck Attorneys post image

Monmouth Bar Golden Gala Honors Two Scarinci Hollenbeck Attorneys

Scarinci Hollenbeck is proud to share that two highly acclaimed retired judges who now serve as Of Counsel to the firm, Hon. Ira E. Kreizman, J.S.C. and Hon. Ronald Lee Reisner, J.S.C., will be honored at the Monmouth Bar Association’s Golden Gala. The event recognizes members of the Monmouth Bar Association who have practiced law […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Monmouth Bar Golden Gala Honors Two Scarinci Hollenbeck Attorneys"
NJ Real Estate Attorney Joe DeMarco Named in 2026 NJBIZ Leaders in Law List post image

NJ Real Estate Attorney Joe DeMarco Named in 2026 NJBIZ Leaders in Law List

Scarinci Hollenbeck is pleased to announce that NJ Real Estate Partner, Joe DeMarco, has been named a 2026 Leaders in Law Award Honoree by NJBIZ in the Real Estate: Construction, Environmental, Leasing category. The NJBIZ Leaders in Law program recognizes attorneys and general counsels whose professional accomplishments, leadership, and service to their communities demonstrate a […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "NJ Real Estate Attorney Joe DeMarco Named in 2026 NJBIZ Leaders in Law List"
John M. Scagnelli Re-Elected to LSRPA Board of Trustees post image

John M. Scagnelli Re-Elected to LSRPA Board of Trustees

Scarinci Hollenbeck is pleased to announce that Partner John M. Scagnelli has been re-elected to serve on the Board of Trustees of the Licensed Site Remediation Professionals Association (LSRPA) for an additional two-year term. LSRPA is the statewide professional organization representing New Jersey’s Licensed Site Remediation Professionals (LSRPs), playing a central role in advancing environmental […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "John M. Scagnelli Re-Elected to LSRPA Board of Trustees"
Robert E. Levy Re-Certified as Civil Trial Attorney by the Supreme Court of New Jersey post image

Robert E. Levy Re-Certified as Civil Trial Attorney by the Supreme Court of New Jersey

Scarinci Hollenbeck is pleased to announce that Robert E. Levy has been re-certified as a Certified Civil Trial Attorney by the Supreme Court of New Jersey. This re-certification, combined with Levy’s existing designation as a Certified Criminal Trial Attorney, places him among less than one percent of all certified attorneys in New Jersey to hold […]

Author: Scarinci Hollenbeck, LLC

Link to post with title - "Robert E. Levy Re-Certified as Civil Trial Attorney by the Supreme Court of New Jersey"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!