How should I respond to being threatened by another company's VP?

Question

I was threatened by another company's VP for "willfully and wrongfully withholding payment" and he stated that " it will fall on me and word is going to spread in the industry"  if I do not pay an invoice that is 5 years old. I started working at the my company 5 months ago as Operations Director - despite my title, I do not have access to company finances and only the owner pays invoices. The owner refuses to pay this invoice despite owing it. I saw an email from this company pleading for resolution, and I responded to try to understand the situation. I am the first person to respond to them in 5 years. I told the VP that I would try to convince the owner to pay but that I would not be able to do so since I do not have access to company finances. They were grateful at first, but I have not been successful in getting the owner to pay. Now the VP sent me this threatening email. Isn't the false statement of withholding payment slander? Isn't "word is going to spread"threat of defamation?

Cesar Mejia Duenas · Answer

The situation you describe involves potential legal claims related to defamation and coercion. Here’s how you might approach this: 
 
(i) Slander and Defamation: Slander refers to a false spoken statement that damages a person's reputation. If the VP's statement that you are "willfully and wrongfully withholding payment" is both false and communicated to others, you might have a slander claim. For a defamation claim to be successful, you would need to prove that the statement was made publicly, that it was false, and that it caused you reputational harm. The statement in the email itself may not constitute slander unless it is shared with others in a way that damages your reputation. 
 
(ii) Threat of Defamation: The VP's statement that "word is going to spread in the industry" could be considered a threat of defamation. However, unless the statement is actually made to others, it's not yet defamation. Still, the threat could be seen as coercive and potentially actionable under tort law if it causes you harm or unduly pressures you. 
 
Given your limited role in handling company finances and the nature of the threat, you should (i) document everything, including all communications with the VP, (ii) consult with an attorney experienced in business law or defamation in Florida to assess whether you have grounds for a legal claim, and (iii) respond professionally to the VP, reiterating your lack of access to company finances and directing any legal or financial matters to the company's owner. 
 
Best of luck, and I hope everything goes well.

Phillip William Gunthert · Answer

I would add that most debts in the State of Florida related to contracts have a 5-year statute of limitations attached to them, it would appear based on what you have reported and if correct, that the ability to collect this debt may have expired (thus the threats), you should review the statute of limitations and or speak with a debt collection attorney and they will be able to more precisely advise you. The company could file a lawsuit to collect the debt, the defense would be that the statute of limitations has expired to collect the debt, if you are correct on the amount of time that has passed.

Q: How should I respond to being threatened by another company's VP?