A new client of ours, Cortese Conservation, has requested we sell to it on 60-day credit terms.It is being sued for defamation.I would like to know if this claim has any merit before we ship product to Cortese on credit.

Cortese Conservation, as you may know, restores museum-grade paintings.It terminated one of its restorers, an employee named Dr. Genevieve Porter.She was fired after she told the online edition of the National Fine Arts Journal thatCortese may have"botched" its restoration of a noted baroque painting by Torromino, known as "The Idyll".

In a follow up article in the NFAJ, Cesar Cortese, the CEO, was interviewed and responded to Porter's claim.He said that all the work done by Cortese was professionally proper. He said Dr. Porter is just "a disgruntled employee" who was a "poor performer" and she was let go because she "submitted numerous false appraisal reports." He said her report on 'The Idyll" contained serious errors, including the year it was painted (she said 1609, instead of 1619) and her report stated that "chalk should have been mixed into the oil paint as an impasto extender" which Cortese said was "preposterous."

Porter has sued Cortese Conservation and Cesar Cortese for defamation. She is claiming damages of $100m.I am concerned about extending credit to Cortese.With this expensive litigation, possible reputational damage, and exposure to a big verdict, Cortese Conservation may be unable to pay our bills.

Does her defamation claim have any chance of success?Thoughts?

Regards.