Suing someone or business for spreading false rumors about my Auto Mechanic business

Well, can you sue?  Sure.  Will you win?  Well, that’s the tough part.  A cause of action for defamation requires the following: 1. The Defendant published a false statement; 2. About the Plaintiff; 3. To a third party; and 4. The falsity of the statement caused injury to the plaintiff. So, the next step is to see if your facts fit the elements for the cause of action.  Publication can be made by telling another person.  The key to this is whether the statement that was made is false because truth is an absolute defense to a claim for defamation.  You mention it is a rumor involving drugs.  Without more facts, all I can say is to be sure it is false.  Next, does the statement involve you or your business (or both)?  Was it made to a third party?  It sounds like it was made to a third party, so you should know to whom it was made.  Finally, and this is often the sticking point, has it caused injury to you or your business?  …and what is that injury?  Generally, we’re talking about dollar signs here and that can be difficult to determine, but it is an important element.  Not to be too long-winded here, but you may also have a business tort against the potential Defendant.  You mention that the cause for spreading these statements is that the potential Defendant became a competitor of your business; therefore, you may have a tortious inference claim.  Facts are extremely important here so I would highly suggest setting up a consultation with an attorney sooner rather than later.