Real Safety AI Foundation / Research

Disability, Accessibility, and Civil Rights

Make It Make Cents: How Defamation's Economic Filter Abandons the Disability Class

Publisher: Real Safety AI Foundation

Working paper. Not peer reviewed.

Written
August 2026
Pages
28

Abstract

American defamation converts a dignitary injury into a property injury, and the conversion decides who has a remedy. Two filters run in sequence: whether the statement was of and concerning an ascertainable plaintiff, which eliminates statements aimed at classes, and whether the plaintiff can locate the injury on a ledger. Disparagement of a disability is definitionally class directed, since nobody asserts that a named individual lacks a diagnosis; the assertion is that the category itself is fictitious. The first filter therefore extinguishes the claim before the second is reached, and where a plaintiff clears the first, the second sorts claimants by whether they sell the identity rather than by whether they were injured. The advocate who earns a living speaking about a condition can plead injury to trade or business; the worker who merely has it cannot. Three corrections follow from the sources. The decision universally cited for the size rule is two opinions, and neither holds what it is said to hold. The modern test is qualitative, asking the intensity of suspicion cast upon the plaintiff, and it has permitted suit by one of sixty football players while barring one of twelve parking operators. The economic filter reaches written defamation notwithstanding a jurisdictional split over libel per quod, because the constitutional actual injury requirement runs across both from above. And the Americans with Disabilities Act already forbids the inference the disparagement rests on: substantial limitation is assessed without regard to learned adaptive modifications, and coverage extends to a person regarded as impaired whether or not any limitation exists. The Article then reaches the empirical premise underneath the size rule, stated on the face of the controlling authority: that no reasonable reader draws an inference about any individual from a statement about a large class. The research on generic language contradicts it, including the work most skeptical of that literature, which finds that hearing a property predicated of a novel category leads adult listeners to attribute it to an unencountered member. This Article proposes no group libel regime and takes no side in that debate. Its claim is internal. A remedy that scales inversely with the size of the injured class leaves the widest harms with the fewest doors; hostile environment doctrine reaches class directed statements only inside a covered relationship; and a system capable of delivering an identical class disparagement to millions of individual recipients now sits precisely in the gap.

Keywords

  • libel
  • group libel
  • of and concerning
  • ascertainability
  • special damages
  • presumed damages
  • relationship gate
  • generic language
  • ableism
  • hostile environment
  • large language models
  • Neiman-Marcus v. Lait

Plain language slides

First slide of the plain language summary of Make It Make Cents: How Defamation's Economic Filter Abandons the Disability ClassOpen the 36-slide summary (PDF)

Suggested citation

Gilly, Travis. "Make It Make Cents: How Defamation's Economic Filter Abandons the Disability Class." Real Safety AI Foundation Working Paper, August 2026. https://realsafetyai.org/research/make-it-make-cents/

Other versions

This paper is also posted on SSRN.

SSRN version

References (84)

  1. Albright v. Morton, 321 F. Supp. 2d 130 (D. Mass. 2004).
  2. Benitez, J., Leshin, R., & Rhodes, M. (2022). The influence of linguistic form and causal explanations on the development of social essentialism. Cognition, 229, 105246. https://doi.org/10.1016/j.cognition.2022.105246.
  3. Beukeboom, C. J., & Burgers, C. (2019). How stereotypes are shared through language: A review and introduction of the Social Categories and Stereotypes Communication (SCSC) framework. Rev. Comm. Rsch., 7, 1–37. https://doi.org/10.12840/issn.2255-4165.017.
  4. Burgers, C., & Beukeboom, C. J. (2020). How language contributes to stereotype formation: Combined effects of label types and negation use in behavior descriptions. J. Language & Soc. Psych., 39(4), 438–456. https://doi.org/10.1177/0261927X20933320.
  5. Alexis v. District of Columbia, 77 F. Supp. 2d 35 (D.D.C. 1999).
  6. Arcand v. Evening Call Publishing Co., 567 F.2d 1163 (1st Cir. 1977).
  7. Barendt, E. (2019). What is the harm of hate speech? Ethical Theory & Moral Prac., 22(3), 539–553. https://doi.org/10.1007/s10677-019-10002-0.
  8. Beauharnais v. Illinois, 343 U.S. 250 (1952).
  9. Calise v. Meta Platforms, Inc., 103 F.4th 732 (9th Cir. 2024).
  10. Biondi v. Nassimos, 692 A.2d 103 (N.J. Super. Ct. App. Div. 1997).
  11. Bornmann v. Star Co., 174 N.Y. 212, 66 N.E. 723 (1903).
  12. Brandenburg v. Ohio, 395 U.S. 444 (1969).
  13. Brady v. Ottaway Newspapers, Inc., 84 A.D.2d 226, 445 N.Y.S.2d 786 (N.Y. App. Div. 1981).
  14. Chapa v. Abernethy, 175 S.W. 166 (Tex. Civ. App. 1915).
  15. Ciolino v. Simon, 2021 IL 126024, 192 N.E.3d 579.
  16. Collin v. Smith, 447 F. Supp. 676 (N.D. Ill. 1978).
  17. Collin v. Smith, 578 F.2d 1197 (7th Cir. 1978).
  18. Davis ex rel. LaShonda D. v. Monroe County Board of Education, 526 U.S. 629 (1999).
  19. Delgado, R. (1982). Words that wound: A tort action for racial insults, epithets, and name-calling. Harv. C.R.-C.L. L. Rev., 17, 133–181.
  20. Dworkin v. Hustler Magazine, Inc., 867 F.2d 1188 (9th Cir. 1989).
  21. Clemente v. Espinosa, 749 F. Supp. 672 (E.D. Pa. 1990).
  22. Dun & Bradstreet, Inc. v. Greenmoss Builders, Inc., 472 U.S. 749 (1985).
  23. Excellus Health Plan, Inc. v. Tran, 287 F. Supp. 2d 167 (W.D.N.Y. 2003).
  24. Gamble v. City of Escondido, 104 F.3d 300 (9th Cir. 1997).
  25. Garrison v. Louisiana, 379 U.S. 64 (1964).
  26. Fair Housing Council of San Fernando Valley v. Roommates.Com, LLC, 521 F.3d 1157 (9th Cir. 2008).
  27. Fawcett Publications, Inc. v. Morris, 377 P.2d 42 (Okla. 1962).
  28. Firth v. State, 98 N.Y.2d 365, 775 N.E.2d 463 (2002).
  29. Flowers v. Southern Regional Physician Services Inc., 247 F.3d 229 (5th Cir. 2001).
  30. Foster-Hanson, E., Leslie, S.-J., & Rhodes, M. (2022). Speaking of kinds: How correcting generic statements can shape children’s concepts. Cognitive Sci., 46, e13223. https://doi.org/10.1111/cogs.13223.
  31. Force v. Facebook, Inc., 934 F.3d 53 (2d Cir. 2019).
  32. Fox v. Costco Wholesale Corp., 918 F.3d 65 (2d Cir. 2019).
  33. General Motors Corp. v. Piskor, 340 A.2d 767 (Md. Ct. Spec. App. 1975).
  34. Gintert v. Howard Publications, Inc., 565 F. Supp. 829 (N.D. Ind. 1983).
  35. Hoicka, E., Saul, J., & Prouten, E. (2021). Language signaling high proportions and generics lead to generalizing, but not essentializing, for novel social kinds. Cognitive Sci., 45(11), e13051. https://doi.org/10.1111/cogs.13051.
  36. Leshin, R. A., Leslie, S.-J., & Rhodes, M. (2021). Does it matter how we speak about social kinds? A large, preregistered, online experimental study of how language shapes the development of essentialist beliefs. Child Dev., 92(4), e531–e547. https://doi.org/10.1111/cdev.13527.
  37. Fowler v. Curtis Publishing Co., 78 F. Supp. 303 (D.D.C. 1948), aff’d, 182 F.2d 377 (D.C. Cir. 1950).
  38. Garcia v. Character Technologies, Inc., No. 6:24-cv-01903 (M.D. Fla. May 21, 2025).
  39. Gertz v. Robert Welch, Inc., 418 U.S. 323 (1974).
  40. Gross v. Cantor, 270 N.Y. 93, 200 N.E. 592 (1936).
  41. Hayes v. Smith, 832 P.2d 1022 (Colo. App. 1992).
  42. Guess, Inc. v. Superior Court, 176 Cal. App. 3d 473, 222 Cal. Rptr. 79 (1986).
  43. Harris v. Forklift Systems, Inc., 510 U.S. 17 (1993).
  44. Henderson v. Source for Public Data, L.P., 53 F.4th 110 (4th Cir. 2022).
  45. Lawrence, C. R., III (1990). If he hollers let him go: Regulating racist speech on campus. Duke L.J., 1990, 431–483.
  46. Louisville Times v. Stivers, 252 Ky. 843, 68 S.W.2d 411 (1934).
  47. Martin v. Outboard Marine Corp., 15 Wis. 2d 452, 113 N.W.2d 135 (1962).
  48. Matal v. Tam, 582 U.S. 218 (2017).
  49. Matsuda, M. J. (1989). Public response to racist speech: Considering the victim’s story. Mich. L. Rev., 87, 2320–2381.
  50. Mattioda v. Nelson, 98 F.4th 1164 (9th Cir. 2024).
  51. Milkovich v. Lorain Journal Co., 497 U.S. 1 (1990).
  52. Neiman-Marcus Co. v. Lait, 107 F. Supp. 96 (S.D.N.Y. 1952).
  53. Neiman-Marcus v. Lait, 13 F.R.D. 311 (S.D.N.Y. 1952).
  54. McCullough v. Cities Service Co., 676 P.2d 833 (Okla. 1984).
  55. Nazeri v. Missouri Valley College, 860 S.W.2d 303 (Mo. 1993).
  56. Newsom v. Brod, 89 S.W.3d 732 (Tex. App. 2002).
  57. Note, Group libel laws: Abortive efforts to combat hate propaganda. (1952). Yale L.J., 61(2), 252. https://doi.org/10.2307/793682.
  58. Neufeld, E., Bosse, A., Del Pinal, G., & Sterken, R. (2025). Giving generic language another thought. WIREs Cognitive Sci., 16(1), e70000. https://doi.org/10.1002/wcs.70000.
  59. New York Times Co. v. Sullivan, 376 U.S. 254 (1964).
  60. Noral v. Hearst Publications, Inc., 40 Cal. App. 2d 348, 104 P.2d 860 (1940).
  61. Noyes, A., & Keil, F. C. (2020). There is no privileged link between kinds and essences early in development. Proc. Nat’l Acad. Sci., 117, 10633. https://doi.org/10.1073/pnas.2003627117.
  62. Park, D., Schaeffer, M. W., & Nolla, K. (2017). How do generic statements impact performance? Evidence for entity beliefs. Developmental Sci., 20(2), e12396. https://doi.org/10.1111/desc.12396.
  63. Spence v. Funk, 396 A.2d 967 (Del. 1978).
  64. Strossen, N. (1990). Regulating racist speech on campus: A modest proposal? Duke L.J., 1990, 484–573. https://doi.org/10.2307/1372555.
  65. Tanenhaus, J. (1950). Group libel. Cornell L.Q., 35, 261.
  66. Tollett v. United States, 485 F.2d 1087 (8th Cir. 1973).
  67. Three Amigos SJL Rest., Inc. v. CBS News Inc., 132 A.D.3d 82, 15 N.Y.S.3d 36 (N.Y. App. Div. 2015).
  68. United States v. Hurt, 676 F.3d 649 (8th Cir. 2012).
  69. 24 C.F.R. §100.600 (2016).
  70. 42 U.S.C. §§12101, 12102.
  71. 47 U.S.C. §230.
  72. Waldron, J. (2010). Dignity and defamation: The visibility of hate. Harv. L. Rev., 123, 1596.
  73. Ward v. Zelikovsky, 136 N.J. 516, 643 A.2d 972 (1994).
  74. Post, R. C. (2018). Racist speech, democracy, and the First Amendment. In Speech and Harm (pp. 247–307). Routledge. https://doi.org/10.4324/9781315053615-9.
  75. Petro-Lubricant Testing Laboratories, Inc. v. Adelman, 233 N.J. 236, 184 A.3d 457 (2018).
  76. Quigley v. Winter, 598 F.3d 938 (8th Cir. 2010).
  77. R.A.V. v. City of St. Paul, 505 U.S. 377 (1992).
  78. Restatement of Torts §564 cmt. c (Am. L. Inst. 1938).
  79. Restatement (Second) of Torts §§564, 564A, 570–575, 577A, 623A (Am. L. Inst. 1977).
  80. Rhodes, M., Leslie, S.-J., & Tworek, C. M. (2012). Cultural transmission of social essentialism. Proc. Nat’l Acad. Sci., 109, 13526. https://doi.org/10.1073/pnas.1208951109.
  81. Riesman, D. (1942). Democracy and defamation: Control of group libel. Colum. L. Rev., 42(5), 727. https://doi.org/10.2307/1117690.
  82. Service Parking Corp. v. Washington Times Co., 67 App. D.C. 351, 92 F.2d 502 (1937).
  83. Simpson, R. M. (2012). Dignity, harm, and hate speech. Law & Phil., 32(6), 701–728. https://doi.org/10.1007/s10982-012-9164-z.
  84. Weston v. Commercial Advertiser Ass’n, 184 N.Y. 479, 77 N.E. 660 (1906).

All research