Can You Sue Over an Unfair, Bad Reference

[dumbfounded in SD]

My question involves defamation in the state of: South Dakota.
I worked for a company as a bookkeeper. It was part time, I only worked two days a week and was employed there for 8 months. A group of investors started the company and the Chairman of the Board lived nearby and would stop in each day for about 5 minutes a day to check on everyone. I liked working there, never had anyone complain about my work or say that I was not getting things done on time. The company has a vast amount of debt due to poor management and they went through employees like water. I quit due to the fact that my husband's shift changed to days and I lost my babysitter. I am now looking for employment as a bookkeeper again and a future employer called the Chairman and asked him some questions about me. It just happened that he took this phone call while at the office and a former coworker of mine overheard the conversation. This Chairman said that I was a poor employee, needed direct supervision and was not qualified to be a bookkeeper. When I quit, on the last day, the Chairman thanked me for doing a great job. Also, they have gone through two bookkeepers since I left last fall and the general manager (not the Chairman) would call me in to help do the state and federal taxes and clean up the books since the two bookkeepers they had were messing everything up. I live near a small town, there are not very many higher level accounting jobs in this area. I did not put this Chairman down as a reference, in fact, I did not give any references when I interviewed, they must have just called my former employment and the secretary must have given his name and cell phone number. Is he qualified to even make such remarks when he did not even directly work with me? This Chairman is a horrible, grumpy old man and no one ever does a good enough job for him. He even fired his own son in law from the company. I just feel like I have been blindsided and this is going to hurt me from even getting a job.

[KeyWestDan]

Yes, you could have a case, but proving it will be very difficult as well as proving actual damages, at least at this point.

Most employers will only give out very basic information, for fear of being sued.

I would consult an attorney and have the attorney write a letter to the "Chairman" explaining that providing untrue information to your potential employers constitutes slander and defamation of character and demand that he cease and desist or face a civil action for major damages.

[Mr. Knowitall]

It sounds like all he gave was an opinion. An opinion won't ordinarily support a defamation case, even if it is wrong or unfair.

The big question, though, is whether you got the job. If so, you have no economic damages.

[dumbfounded in SD]

So, if I do not get the job, than what?

[Mr. Knowitall]

Then you have what sounds like a very weak potential claim, as an opinion won't ordinarily support a defamation case, even if it is wrong or unfair.

[cbg]

Then you would still have a hard time with a lawsuit because he gave his opinion, which is protected, even if he is mistaken.

[Betty3]

In SD, employers who give information about job performance of current or former employees are presumed to be acting in good faith and may not be held liable for their disclosure. Good faith isn't presumed though only when employers act recklessly, knowingly, or with malicious purpose to disclose false information.