If it is true that Monica did owe Bob 500, then the Monica can't
recover anything. The fact the Monica is a PUBLIC FIGURE brings
another element of her trying to sue for Defamation under Michigan
Law, and that element is that Monica must prove Bob's comments were
not only not true, but made with intentional MALICE. Monica, in
this scenario, doesn't have a case. She also has no case because
Bob did not make any comments about Monica's character, only
alleged that she owed him $500....perhaps Monica would have a case
if that not true and Bob further called her names defaming her
character, for example, a "crook", "theif", and that name calling
could be proved that Bob intended malice, since Monica is a public
figure. Short answer.....NOPE! If it is true that Monica did owe
Bob 500, then the Monica can't recover anything. The fact the
Monica is a PUBLIC FIGURE brings another element of her trying to
sue for Defamation under Michigan Law, and that element is that
Monica must prove Bob's comments were not only not true, but made
with intentional MALICE. Monica, in this scenario, doesn't have a
case. She also has no case because Bob did not make any comments
about Monica's character, only alleged that she owed him
$500....perhaps Monica would have a case if that not true and Bob
further called her names defaming her character, for example, a
"crook", "theif", and that name calling could be proved that Bob
intended malice, since Monica is a public figure. Short
answer.....NOPE!