Answer: No, because Bob has the defense of truth.
Explanation: Defamation is passing on false and harmful information about someone to a third party. Because Monica does owe $500, he has the defense of truth which is an absolute defense as it renders what he has said, just fact and not defamation at all. For a defamation case to be proven, the information must be false.
Defamation laws exist to protect people’s reputation from false statements being made about them. The media used defines the type of Defamation. When it is in written form, it is libel and when spoken, it is slander.