Defamation is constituted by unlawful, intentional publication of defamatory matter (by word or conduct) referring to the plaintiff, which causes his reputation to be impaired. To establish defamation, the plaintiff must prove: (1) publication of defamatory words or conduct; (2) that the words referred to the plaintiff; (3) unlawfulness; and (4) intention. Where idiomatic or metaphorical language is used, the court must examine the context and the understanding of the audience to determine whether the words carried a defamatory imputation (innuendo). Words that impute theft, embezzlement, or dishonesty to a professional person in a position of trust are defamatory per se. The defendant bears the burden of proving defenses excluding unlawfulness, such as truth for public benefit, fair comment, privilege, or consent. In assessing damages for defamation, the court must balance aggravating factors (plaintiff's character and standing, extent of publication, nature of imputation, lack of retraction) against mitigating factors (partial justification, plaintiff's existing reputation issues). The assessment of damages is a matter of impression rather than mathematical calculation, focused on compensating the plaintiff rather than punishing the defendant.