In what circumstances will a court sustain a demurrer to a defamation cause of action brought by a plaintiff who alleges that an employee of a service credit company made false statements about his qualifications for service credit?

Although plaintiff alleged actual malice, the second amended complaint did not allege facts that would establish ill will towards him, or that defendants lacked a reasonable belief that the statements in their internal communications regarding his qualifications for service credit were true. The complaint must set forth fact showing that actual malice existed at the time the communication was published. (Locke v. Mitchell (1936) 7 Cal.2d 599, 603.) Conclusory allegations of malice are insufficient. (Ibid.) Although not necessary to our decision that the demurrer was properly sustained to the defamation cause of action, we conclude the complaint was insufficient for failure to plead facts showing actual malice. The trial court properly sustained the demurrer to the defamation cause of action.