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[2011] NSWCA 59
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Holmes a Court v Papaconstuntinos [2011] NSWCA 59 (21 March 2011)
Last Updated: 30 March 2011
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Case Title:
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Holmes a Court v Papaconstuntinos
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Medium Neutral Citation:
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Hearing Date(s):
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Decision Date:
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Jurisdiction:
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Allsop P [1] Beazley JA [11] Giles JA
[12] Tobias JA [14] McColl JA [19]
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Decision:
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(a) Appeal allowed with costs. (b) Set aside the
orders of McCallum J entered on 4 September 2009. (c) Verdict and judgment
for the appellant. (d) Respondent to have a certificate under the Suitors'
Fund Act 1951 (NSW) if otherwise qualified. [Note: The Uniform Civil
Procedure Rules 2005 provide (Rule 36.11) that unless the Court otherwise
orders, a judgment or order is taken to be entered when it is recorded in the
Court's computerised
court record system. Setting aside and variation of
judgments or orders is dealt with by Rules 36.15, 36.16, 36.17 and 36.18.
Parties should in particular note the time limit of fourteen days in Rule
36.16.]
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Catchwords:
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DEFAMATION - Defences - Qualified Privilege -
Common Law - appellant published defamatory imputations alleging respondent had
repeated
misleading information and was reasonably suspected by the appellant of
corrupt conduct - no evidence of the truth of those allegations
- whether
communication made on occasion of qualified privilege - relevance of voluntary
nature of publication and its timing in
determining defence
DEFAMATION - Defences - Qualified Privilege - Common Law - whether
reciprocity of interest between appellant and recipient of communication
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whether community of interest proven
DEFAMATION - Defences - Qualified Privilege - Common Law - whether
defamatory matter sufficiently connected to the privileged occasion
WORDS AND PHRASES - "community of interest", "occasion of qualified
privilege", "reciprocity of interest"
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Legislation Cited:
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Cases Cited:
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Texts Cited:
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Gatley, Law and Practice of Libel and Slander in a
Civil Action, 1st ed (1924) Sweet & Maxwell Ltd George Paton and
Professor Sawer, "Ratio Decidendi and Obiter Dictum in Appellate Courts" (1947)
63 Law Quarterly Review N Duxford, The Nature and Authority of Precedent,
(2008) Cambridge University Press Odgers, A Digest of the Law of Libel and
Slander, 5th ed (1911) Stevens and Sons Limited P Lewis, Gatley on Libel and
Slander, 8th ed (1981) Sweet & Maxwell P Milmo and WVH Rogers, Gatley on
Libel and Slander, 11th ed (2008) Sweet & Maxwell Sir Rupert Cross,
Precedent in English Law, 4th ed (1991) Clarendon Press Oxford Professor
Raymond Brown, The Law of Defamation in Canada, 2nd ed (1994)
Carswell Spencer Bower, A Code of the Law of Actionable Defamation, 2nd ed
(1923) Butterworth & Co
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Category:
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Parties:
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Peter Holmes a Court - Appellant Tony
Papaconstuntinos - Respondent
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Representation
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Counsel: BR McClintock SC with RW Potter -
Appellant TK Tobin QC with RK Weaver - Respondent
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- Solicitors:
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Solicitors: Baker & McKenzie -
Appellant Slater & Gordon - Respondent
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File number(s):
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Decision Under Appeal
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- Court / Tribunal:
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- Date of Decision:
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- Citation:
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- Court File Number(s)
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Publication Restriction:
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Judgment
- ALLSOP
P: I have read the reasons in draft of McColl JA. I agree with the orders
that her Honour proposes. I agree with her Honour's reasons,
but I would prefer
also to state my own reasons shortly, which I am able to do without repeating
the necessary factual and legal
context discussed by her Honour.
- McHugh
J in Bashford v Information Australia (Newsletters) Pty Limited [2004]
HCA 5; (2004) 218 CLR 366 was in dissent. It is unnecessary to consider whether
all the statements of principle by his Honour accorded with the majority's
approach to the matter. That they do not do so entirely can be deduced from the
strength of his Honour's expression of views, especially
in the opening
paragraph of his reasons.
- As
a general rule, there is no justification in point of precedent in applying a
dissenting judgment in the High Court as an exposition
of the principle embodied
in the common law of Australia, at least in the absence of clear adoption of it
by a majority of the High
Court or in the absence of it being clearly understood
as a statement of uncontested principle. No doubt many dissenting judgments
in
the High Court, or in an intermediate appellate court, may contain valuable
discussions of legal principle. That, however, is
a different thing to being
taken as an exposition of the common law to be applied.
- It
was submitted that cases in this Court (in particular, Bennette v Cohen
[2009] NSWCA 60 and Goyan v Motyka [2008] NSWCA 28) have applied
McHugh J in Bashford to engraft on to the law of qualified privilege a
consideration that even if an interest existed in a publisher, if the
publication
was "voluntary", as opposed to being responsive, there would have to
be demonstrated a further factor of "pressing need". This was
a view that
appeared to have been accepted in the profession and by trial judges. The
primary judge appears to have decided this
matter on this basis. For the reasons
given by McColl JA and below that approach was, with the utmost respect to the
primary judge,
erroneous. It was submitted that this view could be taken from
[20] and [21] of the reasons of Ipp JA in Bennette and from the reasons
of Tobias JA in Goyan. If this is what Ipp JA and Tobias JA were saying,
it does not, in my view, properly arise either from what McHugh J (or the
majority
for that matter) said in Bashford or from any other proper
foundation. I do not think, however, that either Ipp JA in Bennette or
Tobias JA in Goyan should be so understood. In Goyan Tobias JA at
[43] recited the clear (if I may say so) expression of principle by McColl JA in
Moit v Bristow [2005] NSWCA 322 (at [73] - [79]). There was a reference
by her Honour to the judgment of McHugh J in Bashford at [55], but it was
only to McHugh J's reference to Jordan CJ in Andreyevich v Kosovich
(1947) 47 SR (NSW) 357 (at 363). If, however, Bennette and Goyan
are (contrary to my view) to be taken to require (from the reasons of McHugh
J in Bashford ) a superadded requirement of pressing need if the
publication were voluntary, even if an interest in the publisher has been
demonstrated,
in my view, the reasons of McHugh J have been misunderstood and
taken beyond their intended reach. The place of "pressing need" can,
as Mr Tobin
suggested, be traced back to cases in which the defendant had no personal
interest or duty, but the need in question
might have created a form of social
duty to speak: see for example Coxhead v Richards [1846] EngR 379; (1846) 2 CB 569; 135 ER
1069 and the discussion by McColl JA of the concept and its fate in later cases.
- Pressing
need is not a superadded precondition for qualified privilege, even if there be
an interest in the publisher, if the publication
is voluntary. Rather, it may be
the foundation of a social duty for publication or to publish if neither duty
nor interest otherwise
arises. For instance, in circumstances such as those in
Coxhead v Richards , the fact that the publisher had no interest in the
ship or cargo might not prevent the statement about the master's propensity to
drink being protected by qualified privilege based on the perceived need in the
"volunteer" to speak given the danger to ship and
crew posed by the master. The
question whether a social duty arises in circumstances where no pre-existing
duty or interest exists
will be analysed by reference to all the circumstances.
To such an analysis the voluntariness of the statement may be relevant, as
it
may be in the assessment as to whether the statement was fairly warranted by the
occasion: Macintosh v Dun [1908] AC 390 (at 399).
- It
is therefore wrong, in my view, having once found interest in the publisher, to
label the communication voluntary and then require
super-added proof of
"pressing need". To the extent that previous decisions of this Court could be
understood as saying this (of
which I am not persuaded) they would be plainly
wrong and should not be followed.
- That
error, in my respectful view, did affect the primary judge's reasoning. Her
Honour concluded, correctly in my respectful view,
that Mr Ferguson had a clear
interest in receiving the letter as an officeholder of the union: see [64] -
[67] of her Honour's reasons.
The primary judge then proceeded to analyse Mr
Holmes a Court's interest and position (at [68] - [72]) of her reasons. There
were
three related and interconnected reasons for rejecting the claim to
qualified privilege. First, her Honour looked (at [69]) for the
"pressing need"
for the protection of Mr Holmes a Court's interests by the sending of the
letter. It is at this point, most clearly,
that her Honour posits an interest of
Mr Holmes a Court, but requires an additional factor of pressing need. As I have
already said,
it goes without saying that all the circumstances of the occasion
should be examined in order to assess the interest or duty of the
publisher and
the recipient and whether the publication was fairly warranted by any reasonable
occasion or exigency. But the primary
judge here added a qualification, or
gloss, to the fundamental social evaluation that is based on the respective
interests of Mr
Holmes a Court as publisher and Mr Ferguson as recipient.
- Secondly,
counsel for Mr Papaconstuntinos conceded below that Mr Holmes a Court had an
interest in conveying the information set out
in the letter: see [62] of the
primary judge's reasons. The primary judge came to the opposite view, expressing
her reasons at [70].
Involved in that conclusion was the evaluation of pressing
need. This can be seen in the sentence in [70]: "That ... was a tenuous
connection that afforded no basis for volunteering information on the
subject to Mr Ferguson." (Emphasis added.)
- With
respect, Mr Holmes a Court had a clear interest in the vote at the coming
Extraordinary General Meeting. What was in effect an
election or vote at that
meeting concerned control of the affairs of an important social and community
sporting institution. Mr Papaconstuntinos
was an active opponent of Mr Holmes a
Court's interests. The interest in the sending of the matter complained of was
the real possibility
or expectation that doing so would bring about the
intervention of Mr Ferguson, or create circumstances to make it more likely that
the intervention of Mr Ferguson would be brought about, in order to stop Mr
Papaconstuntinos ringing and contacting people. Mr Ferguson
had previously said
that the affairs of the club were not union business. The letter might
reasonably be seen to make them so and
cause Mr Ferguson to attempt to bring Mr
Papaconstuntinos to heel. That the matter complained of was sent two days before
the vote
at the meeting did not deprive it of possible effect. Any intervention
by Mr Ferguson in those two days may well have had some effect;
in a close vote,
some effect might be decisive.
- Thirdly,
the primary judge did not accept that the publication was fairly warranted in
furtherance or protection of Mr Holmes a Court's
interests. I do not think that
this conclusion can be separated from her Honour's erroneous giving of weight to
pressing need and
erroneous assessment of interest. As stated above, this was a
vote at a meeting concerning an important social and sporting community
institution in the relevant area of Sydney. The opposition of Mr
Papaconstuntinos was viewed by Mr Holmes a Court as possibly explained
by the
serious matters that he raised, without malice. Their possible gravity would
have been of clear interest to a senior union
official and his colleagues
anxious for the good name of the union and for honest conduct in connection with
the union's affairs.
The judgment of what was fairly warranted is a value
judgment of a contemporaneous social question. The judgment should be made by
reference to all the circumstances and contemporary social and moral values. In
my view, the occasion fairly warranted the statement.
The letter was not out of
proportion to the importance of the interests of Mr Ferguson and Mr Holmes a
Court. This was an occasion
of qualified privilege.
- BEAZLEY
JA : I agree with the reasons of McColl JA and the orders proposed by her
Honour. I also agree with the additional comments of Allsop
P.
- GILES
JA : For the reasons given by McColl JA, the primary judge was in error in
finding that the appellant did not establish the defence of
qualified privilege.
To the extent to which my agreement with Tobias JA in Goyan v Motyka
[2008] NSWCA 28, in which his Honour's recording of the law (as agreed by
the parties) which included paras [73] and [77] of the reasons of McHugh
J in
Bashford v Information Australia (Newsletters) Pty Ltd [2004] HCA 5;
(2004) 218 CLR 366, carried acceptance of McHugh J's views concerning the
decisiveness of voluntariness and "pressing need", I do not adhere to it.
Voluntariness can nonetheless be a relevant matter, and the decision on Goyan
v Motyka is unaffected.
- I
agree with the orders proposed by McColl JA.
- TOBIAS
JA : I have had the benefit of reading in draft the reasons of Allsop P,
Giles JA and McColl JA. I agree with each of them and with the
orders proposed
by McColl JA. I particularly commend the depth of scholarship exhibited in the
reasons of McColl JA. However, without
being unduly oversensitive, I would wish
to clarify in my own words what I said in Bennette v Cohen [2009] NSWCA
60 and Goyan v Motyka [2008] NSWCA 28.
- In
Bennette v Cohen (at [145]) I cited extensively from the judgment of
McHugh J in Bashford. That citation included, as McColl JA has observed
at [105] of her reasons, the impugned [73] and [77] of McHugh J's judgment. At
[151]
I took into account as one of the relevant circumstances the fact that the
defamatory statements had been volunteered. I made no
mention of any question of
" pressing need ". I did not intend my reference to the defamatory
statement being volunteered as being other than a factor to be taken into
account
together with all other material considerations in determining whether
the occasion attracted the privilege. Nor, I believe, did
Ipp JA at [21] of his
reasons in Bennette .
- In
Goyan v Motyka (at [86]), I recorded four paragraphs from McHugh J's
reasons in Bashford including [73] and [77] and which the parties had
accepted as an accurate statement of the law on the subject of common law
qualified
privilege. At [87] I added a reference to [55] of McHugh J's reasons.
- As
McColl JA points out at [103] of her reasons in the present matter, at [88] of
my reasons in Goyan I made reference to three points or factors of which
one was that the defamatory information was " volunteered ". Again, I
made no reference to a " pressing need " to communicate that information,
although at [92] I stated that as the information was " stale ", it did
not constitute a relevant matter of interest. That was so on the facts of that
case and I do not resile from that finding.
But it went no further than the
particular circumstances of that case. As McColl JA also observes, I did not
treat the fact that
the defamatory statements were volunteered or that they were
" stale " as being " decisive " to my conclusion that the defence
of qualified privilege failed.
- If
my remarks in Goyan or, for that matter, Bennette , have been
understood as going any further than indicating that the fact that the
defamatory statement is volunteered is a relevant
matter to be taken into
account along with all other material circumstances, then that has been due to
my infelicity of expression.
I certainly never intended to convey that such a
factor was " decisive ", ordinarily or otherwise. It was relevant but not
decisive in the two cases in question as I think my reasons in each make clear.
- McCOLL
JA: Mr Peter Holmes a Court, the appellant, appeals from a decision of
McCallum J in which her Honour found that Mr Tony Papaconstuntinos,
the
respondent, had successfully established that a letter sent by the appellant on
17 March 2006 conveyed three imputations that
were defamatory of him and awarded
him general damages of $25,000 plus costs: Papaconstuntinos v Holmes a Court
[2009] NSWSC 903 ("primary judgment").
- The
issue on appeal concerns the primary judge's finding (at [72]) that the
appellant had failed to make out the defence of qualified
privilege at common
law. In making that finding the appellant contends her Honour erroneously
applied the dissenting judgment of
McHugh J in Bashford v Information
Australia (Newsletters) Pty Ltd [2004] HCA 5; (2004) 218 CLR 366.
- The
matter was initially listed as a concurrent leave/appeal hearing before three
judges of the Court. On hearing the application
for leave to appeal it became
apparent that the appellant sought to contend that two previous decisions of
this Court - Bennette v Cohen [2009] NSWCA 60 (special leave refused:
Cohen v Bennette [2009] HCATrans 291) and Goyan v Motyka [2008]
NSWCA 28 - were incorrectly decided and ought be overruled insofar as it was
said that they had also applied McHugh J's dissenting judgment
in Bashford
.
- Leave
to appeal on the issue of qualified privilege was granted at that stage but
because of the challenge to the two decisions of
this Court the matter was fixed
for hearing before five judges of appeal: Holmes a Court v Papaconstuntinos
[2010] NSWCA 329.
- I
have concluded that the primary judge erred in finding the matter complained of
was not published on an occasion of qualified privilege.
The appeal should be
allowed, the primary judge's orders set aside and verdict should be entered for
the appellant.
Legislative context
- As
the matter complained of was published on 17 March 2006, the proceedings were
governed by the Defamation Act 2005 (NSW). The only matter relevant to
note from that legislation is that s 24, which appears in Division 2 dealing
with "Defences", preserved any other defence or exclusion of liability available
to the respondent
apart from that Act (including under the general law). It was
common ground that the appellant was entitled to rely in the common
law defence
of qualified privilege. He did not rely on the statutory defence of qualified
privilege: Defamation Act 2005, s 30.
Background
- In
2005 Mr Russell Crowe and the appellant made a bid for the controlling interest
in the South Sydney District Rugby League Football
Club ("Souths"). Their bid
involved injecting $3 million into Souths in exchange for a controlling interest
in its management. The
proposal contemplated substantial changes to the
corporate structure of the club. Its implementation required the approval of the
members in general meeting: primary judgment (at [2]). At the time Mr Holmes a
Court and Mr Crowe forwarded their proposal the respondent
(who was often
referred to in every day parlance as "Tony Papa") was one of the directors of
the Souths Sydney Leagues Club, a licensed
club associated with Souths: primary
judgment (at [3]). He was also an employee of the Construction, Forestry, Mining
and Energy
Union (the "CFMEU"): primary judgment (at [1]).
- The
respondent was also a keen Souths' supporter. He was staunchly opposed to the
proposed takeover of Souths. An Extraordinary General
Meeting ("EGM") at which
the proposal was to be put to the members' vote was called for Sunday, 19 March
2006. The venue of the meeting
was Sydney Olympic Park, as many members were
expected to attend : primary judgment (at [4]).
- The
appellant sent the matter complained of to Mr Andrew Ferguson, the State
Secretary of the CFMEU, on 17 March 2006. It was written
on the letterhead of
Whitebull Holdings Pty Ltd, the appellant's company and read:
"Dear Andrew,
Pursuant to our conversations recently, I would like to formally complain
about the behaviour of an official of the CFMEU, Mr Tony
Papa.
I have spoken to you previously about my concerns about Mr Papa's use of the
South Sydney District Rugby League Football Club for
his own advancement and I
am afraid I am under the impression that it has continued.
As recently as last weekend, half an hour before the kick off of the
Rabbitohs-Roosters match, Mr Papa called at least one voting
SSDRLFC Member to
repeat misleading information about the proposal which is being put to Members.
I am, frankly, at a loss to understand why Mr Papa has worked so hard to
spread misinformation about the proposal.
I am also aware that another CFMEU member, Mr Tony Bleasdale has joined the
board of the South Sydney Leagues Club. I have been informed
by a senior member
of those opposing our bid that Mr Bleasdale bought $20,000 of funding to pay for
activities of the 'No Camp'.
I am concerned that CFMEU funds may have been
commingled with Mr Bleasdale's funds in supporting the No Camp.
Perhaps most seriously, I am concerned that Mr Papa has personally benefited
from funds meant for the Football Club through the employment
of his son Jamie
in an assistant coaching staff position. Jamie Papa was employed by the club by
Mr George Piggins in an assistant
coaching position and his employment was
terminated by Shane Richardson when Mr Richardson became aware of the
overpayments.
Having reviewed the accounts of the club, reconciled Mr Papa's CV and job
description with other coaching staff, and having personally
interviewed senior
members of the management of the Club, there is no doubt in my mind that Mr
Jamie Papa was paid a salary many
times the going salary for a person of his
experience and for the position that he was performing. Specifically, Mr Jamie
Papa was
paid a salary of approximately $60,000 when the going rate for the role
he was performing was closer to $4,000. I do not know whether
these funds that
were paid to Mr Papa at a premium were a reward for other activities, or a
method of channelling funds to the CFMEU,
or indeed to Mr Tony Papa.
I am concerned that this chapter of Souths history is going to continue,
partially as a result of Mr Tony Papa's efforts and well
funded campaign to
spread misinformation.
I am seeking your assistance in checking the facts that I have presented,
which are based on our very extensive due diligence of the
Football Club's
records collaborated with statements and telephone records of voting members
(which I can supply at the appropriate
time).
Finally, I would reiterate the request I made last week that the CFMEU remove
the Green Ban on the redevelopment of Redfern Oval.
The Football Club has
written to you to ask that the CFMEU now support the redevelopment plans as they
provide the Football Club
with badly needed professional training facilities
(see attached) and drop the green ban. If the CFMEU lifts the ban now, these
facilities
will be ready in time for the 2008 season.
I couldn't think of a more fitting gesture than to see the Rabbitohs return
to Redfern in 2008, the centenary of Rugby League in Australia.
I would respectfully request that I hear from you today.
Yours sincerely,
Peter Holmes a Court
Cc: Nicholas Pappas
Attached: Richardson letter to Ferguson re Redfern Oval redevelopment".
- The
appellant copied the letter to Mr Nicholas Pappas, a solicitor and former
Chairman of Souths. The primary judge was satisfied
that the letter was
published to both Mr Ferguson and Mr Pappas, as well as to Mr Brian Parker, the
respondent's immediate supervisor
at the CFMEU. Her Honour was also satisfied
that Mr Ferguson's personal assistant, Jennifer Class, read it briefly: primary
judgment
(at [8] - [9]).
- In
about August 2005 the appellant and those associated with the bid undertook a
due diligence examination of Souths as part of the
bid process. In the course of
due diligence examination, and certainly by December 2005, the appellant had
become aware of the allegations
concerning the respondent's son's employment at
Souths to which he referred in the matter complained of. He learned no new
information
about this matter between December 2005 and when he sent the matter
complained. He said at trial that he did not correspond with
Mr Ferguson about
the allegations even though he was in communication with him in late 2005/early
2006 as there was no reason to
do so because no one from the CFMEU was actively
opposing the bid.
- The
primary judge found (at [70]) that while the information obtained as a result of
the due diligence "was, on its face, highly suspicious
[h]owever, those were
events which had emerged, and been dealt with by the club, some time earlier."
This appears to have been a
reference to the fact (referred to in the matter
complained of) that Mr Richardson (who was the Chief Executive Officer of
Souths)
had terminated the respondent's son's contract in 2004 when he became
aware of the overpayments.
- On
receipt of the matter complained of Mr Ferguson tried to contact the appellant.
He left a number of telephone messages for him
to which he received no response.
The men finally met to discuss the allegations in the week of 29 March 2006. The
appellant and
his associates in due course took control of Souths. The appellant
did not take any steps thereafter to investigate the allegation
that the
respondent had channelled club funds to the CFMEU.
- It
should be noted that the respondent gave what appears to have been unchallenged
evidence at trial that he had been unaware that
his son's employment with Souths
involved individual sponsorship. There was no defence of truth: primary judgment
(at [65]).
The primary judgment
- The
primary judge found that the matter complained of conveyed the following
imputations of and concerning the respondent and that
they were defamatory of
him:
(a) that the plaintiff, a board member of the South Sydney Leagues
Club, repeated information he knew to be misleading about the defendant's
proposal to take a controlling interest in the South Sydney Rugby League
Football Club (at [18]);
(b) that the plaintiff, a board member of South Sydney Leagues Club, was
reasonably suspected by the defendant of corruptly arranging
for funds meant for
the South Sydney Rugby League Football Club to be channelled to himself (at
[32]); and
(c) that the plaintiff, a board member of the South Sydney Leagues Club, and
an official of the CFMEU, was reasonably suspected by
the defendant of corruptly
channelling overpayments by the South Sydney Rugby League Football Club to the
CFMEU (at [30]).
I will adopt the respondent's approach of referring to imputation (a) as the
"misleading allegation" and to (b) and to (c) as the
"corruption allegations".
- At
trial, the appellant sought to rely on two defences: first, that the matter
complained of was published on an occasion of qualified
privilege at common law,
and secondly, that it was published in circumstances where the plaintiff was
unlikely to suffer harm. He
failed on both defences. Having regard to the
limited issue on appeal, it is only necessary to consider the primary judge's
reasons
on the qualified privilege issue. It is important to record at the
outset, however, that her Honour recorded her findings of fact
on the issue of
malice in case her conclusion that the letter was not published on an occasion
of qualified privilege was wrong.
She held that malice was not established. The
respondent does not challenge that finding.
- The
primary judge commenced her consideration of the defence of qualified legal
privilege by noting that while "[t]he principles to
be applied in determining
whether a defamatory statement was published on an occasion of qualified
privilege are well settled and
may be stated in relatively simply terms", the
"complexity lies in their application" (at [40]). Her Honour described McHugh
J's
judgment in Bashford as having considered "[t]he proper approach to
the Court's task", and set out his Honour's statement (at [53]):
"At common law, a defamatory statement receives qualified
protection when it is made in discharge of a duty or the furtherance or
protection of an interest of the maker of the statement or some person with whom
the publisher has a direct, business or social connection,
and the recipient of
the statement has a corresponding duty to receive or interest in receiving it."
- After
referring to the necessity to examine all the circumstances of the case in
determining whether the matter was complained of
was published on an occasion of
qualified privilege the primary judge (at [44]) cited Bennette v Cohen ,
stating that Ipp JA's judgment provided a useful summary of the principles that
must be applied by the Court when it is undertaking
that task. Her Honour noted
that Ipp JA listed the fact that the defamatory statement was volunteered as a
relevant circumstance,
then said (at [44] - [45]):
"On that
subject, McHugh J said in Bashford at [73]:
'Different considerations apply when the defendant volunteers defamatory
information. Ordinarily the occasion for making a volunteered
statement will be
privileged only where there is a pressing need to protect the interests of the
defendant or a third party or where
the defendant has a duty to make the
statement to the recipient. The common law has generally perceived no advantage
to society in
giving qualified privilege to volunteered statements in the
absence of a pre-existing reciprocity of interest between the defendant
and the
recipient. It has taken the view that the reputation of the defamed should be
preferred over the freedom to publish volunteered
but defamatory statements that
may or may not be true.'
45 His Honour discussed the distinction with cases where the defendant is
responding to a request and continued, at [77]:
'But where neither life is in immediate danger nor harm to the person or
injury to property imminent, the fact that the defendant
has volunteered
defamatory matter is likely to be decisive against a finding of qualified
privilege.'"
- Her
Honour recognised (at [46]) that McHugh J's judgment in Bashford was a
dissenting one, but observed that she did "not think that his dissent turned on
a different view of the principle that the fact that the defamatory statement
has been volunteered is a relevant factor " (emphasis added). In this
respect she noted his Honour's statements had been cited with approval in
Goyan v Motyka (at [86]) by Tobias JA (with whom Giles JA and Handley AJA
generally agreed); in Lindholdt v Hyer [2008] NSWCA 264 (at [92]) by
McColl JA; and in Bennettev Cohen by Ipp JA (at [21]) (with whose reasons
on qualified privilege Campbell JA agreed) and by Tobias JA (at [145]).
The primary judgment: findings on the question of qualified
privilege
- At
trial the appellant submitted that the occasion of qualified privilege extended
to all material in the matter complained of: primary
judgment (at [60]).
Alternatively, he argued there was a "narrower" occasion of qualified privilege,
namely his interest in passing
on information to Mr Ferguson and Mr Pappas about
the respondent repeating misleading information concerning the appellant's
proposal
with respect to Souths. He submitted that if her Honour was satisfied
only on the narrower basis, the balance of the information
in the matter
complained of which did not directly touch on the Souths' takeover issue was
relevant to that occasion because it was
the reason which aroused the
appellant's concern: primary judgment (at [60]).
- The
appellant's case was that the matter complained of was published on occasion of
qualified privilege because there was the necessary
reciprocity of interest
between him and its recipients which warranted communicating its contents. He
identified the following three
matters as establishing his interest (primary
judgment (at [47])):
"1. Mr Holmes a Court's participation in the
proposal to be voted on on 19 March 2006 and the campaign surrounding that
proposal,
including the fact that Mr Papaconstuntinos was a prominent and
passionate opponent of the yes campaign.
2. The fact that Mr Holmes a Court obtained information as a result of the
due diligence which, on its face, was highly suspicious
and demanded to be
checked.
3. The fact that Mr Holmes a Court had information that Mr Papaconstuntinos
had engaged in misleading prospective voters."
- The
appellant submitted at trial that Mr Ferguson had an interest in receiving the
information in the matter complained of for the
following reasons (primary
judgment (at [48])):
"1. The CFMEU were in effect stakeholders in
Souths and the campaign because of their long association with that club.
2. Mr Ferguson had undertaken to Mr Holmes a Court not to take a position in
the vote and invited Mr Holmes a Court to come back to
him if he learned
anything to the contrary.
3. The information in so far as it involved Mr Papaconstuntinos' son's
employment may have involved Mr Papaconstuntinos' conduct as
a CFMEU organiser.
4. Mr Ferguson was in a position to exert influence over Mr Papaconstuntinos'
conduct in relation to the vote and the campaign.
5. Mr Ferguson was Mr Papaconstuntinos' employer and had therefore an
interest in knowing the information in question.
6. He invited Mr Holmes a Court to contact him."
The matters raised in 2 and 6 turned on a conversation between Mr Ferguson
and the appellant in early 2006: primary judgment (at [49]
- [51]). There
appears to have been no controversy at trial that publication to Mr Pappas was
on an occasion of qualified privilege.
The primary judgment is silent as to that
issue. The respondent has not raised it on appeal.
- The
respondent at trial accepted that the appellant had an interest in conveying the
information in the matter complained of due to
his interest in the vote on the
proposal to be held at the EGM and the campaign surrounding the proposal, but
argued that Mr Ferguson
had no correlative interest in receiving the
information. The primary judge reached the opposite conclusion on each of those
issues:
primary judgment (at [62]).
- The
primary judge first rejected the appellant's submission that the defamatory
statements in the matter complained of were not volunteered,
but had been made
in response to an invitation Mr Ferguson made in the conversation in 2006 .
While her Honour noted that Mr Ferguson
had previously met with the appellant
and assured him that the CFMEU would remain neutral in relation to the vote
about the takeover,
she did not accept that the CFMEU had, through Mr Ferguson,
requested the information in the letter which "suggested otherwise":
primary
judgment (at [51] - [52]).
- The
primary judge then turned to the issue of the recipients' interest in receiving
the matter complained of. Her Honour rejected
the appellant's submission that
the CFMEU was a "stakeholder" in Souths: primary judgment (at [54]). She
accepted Mr Ferguson's evidence
to the contrary: that "members of the CFMEU who
took an interest in the Leagues Club did so in their personal capacity, not as
spokespersons
for the union." Accordingly she rejected (primary judgment (at
[55])) the appellant's contention that Mr Ferguson had a special interest
in
receiving the matter complained of because the "CFMEU were in effect
stakeholders in Souths and the campaign because of their
long association with
that club".
- Her
Honour was also of the view (at [55]) that the proposition that Mr Ferguson had
"undertaken" to the appellant not to take a position
in the vote overstated the
effect of the conversation between the two men. She found that the CFMEU did not
have any special interest
in receiving information about the Souths' campaign
whether on account of a long association with the club, or as a result of
anything
said at the meeting between Mr Ferguson and the appellant.
- After
referring again to the need to examine all of the circumstances of the case, the
primary judge said:
"57 The principal subject of the letter was the conduct of Mr
Papaconstuntinos, as to which the letter was pitched as a formal complaint.
The
gist of the complaint was that Mr Papaconstuntinos was spreading misinformation
about Mr Holmes a Court's bid for a controlling
interest in the Football Club.
In apparent support of the complaint, or to explain the conduct complained of,
Mr Holmes a Court provided
the information about the former employment of Mr
Papaconstuntinos' son, and ventured to speculate some past misuse of funds on
the
part of Mr Papaconstuntinos.
58 As I have already indicated, in my view the letter displays careful
composition. The publisher, Mr Holmes a Court, is a well-known
Sydney
businessman. I have regard to the fact that the letter was written on the
letterhead of Whitebull Holdings Pty Ltd, noting Mr Holmes a Court's
contention
that the statement was made in furtherance or protection of his interest in the
South's proposal (and, by implication,
the interest of that company in the
proposal).
59 I accept that the letter was published only to a small number of
recipients, three of whom were officers or employees of the CFMEU.
All of
those are factors consistent with the occasion being one to attract the cloak of
qualified privilege . (emphasis added)
- The
primary judge then returned to the question whether the appellant had "an
interest that justified making the defamatory publication
and whether the
recipients had an interest in receiving it".
- Her
Honour referred to her earlier findings that Mr Ferguson had not requested
information on the subject of the conduct of the campaign
and that she did not
think the CFMEU had any special interest in receiving information about the
campaign on account of a long association
with the club. She concluded (primary
judgment (at [63])) that there was no occasion for Mr Ferguson to receive
information about
the alleged misinformation that the appellant believed the
respondent was spreading in relation to the proposal.
- Her
Honour accepted (primary judgment (at [64])), however, that Mr Ferguson and Mr
Parker had an interest in receiving the information
in so far as it concerned
the respondent's conduct as a CFMEU officer and that they also had an interest
as his employers. She rejected
the respondent's submission that "the information
held by Mr Holmes a Court did not 'hit the mark' of being worth communicating to
Mr Ferguson". She found (primary judgment (at [65])) that "at the time the
information became available to Mr Holmes a Court, it
was ... such as to arouse
suspicion in a reasonable mind", then said:
"66 Mr Papaconstuntinos was an official of the CFMEU. As its name
suggests, that is the union for workers in the construction industry.
The
information uncovered by Mr Holmes a Court was that Mr Jamie Papaconstuntinos
was being paid a salary well in excess of the usual
salary for coaches in the
lower divisions at the South Sydney Football Club. Further, Mr Shane Richardson,
Chief Executive Officer
of the Football Club, had told Mr Holmes a Court that,
when he first learned about the salary being paid, and questioned it, he was
told not to worry because the salary was to be met by sponsors of the club. The
sponsors were construction companies, who may be
assumed to have a motive for
keeping the construction workers' union happy. In my view, those facts were
inherently suspicious.
67 The test is whether the recipients of the letter had an interest in
receiving that information on the assumption that it was true.
Plainly, if
true, the misuse of funds suspected by Mr Holmes a Court on account of those
events warranted consideration by the secretary
of the CFMEU ." (emphasis
added)
- The
primary judge then turned to the issue of the timing of publication of the
matter complained of. On this subject her Honour said:
"68 What I find more difficult to accept is that Mr Holmes a
Court had an interest that justified his publishing information on that subject
to Mr Ferguson at the time that he did . I accept, as submitted by Mr
McClintock, that it is not necessary for the defendant to establish that the
publisher and the recipient
had a common interest arising out of the same set of
circumstances. The interests of the parties can be quite different in kind,
but
the occasion may still be privileged: Aspro Travel v Owners Abroad Group
[1996] 1 WLR 132 at 143; cited in Gatley on Libel and Slander (11 th
ed) at 14.42.
69. The difficulty I have is that I do not think there was a pressing need
for Mr Holmes a Court to protect his interests (or those of
Mr Crowe or
Whitebull Holdings Pty Ltd) by volunteering the defamatory information about the
events surrounding the employment of
Mr Jamie Papaconstuntinos several years
earlier (or expressing his "concerns" in relation to that information).
70 As already indicated, I accept, as submitted by Mr McClintock, that the
information obtained as a result of the due diligence conducted
by Mr Holmes a
Court and his team was, on its face, highly suspicious. However, those were
events which had emerged, and been dealt with by the club, some time earlier
. The premise of Mr Holmes a Court's communication of those events to Mr
Ferguson was that, in his mind, they afforded the explanation
for Mr
Papaconstuntinos' vigorous opposition to the proposal and the misinformation
that Mr Papaconstuntinos had been spreading about
it (according to Mr Holmes a
Court). That, in my view, was a tenuous connection that afforded no basis for
volunteering information on the subject to Mr Ferguson . I do not accept
that Mr Papaconstuntinos' campaign against the bid, even if he was spreading
what was perceived by Mr Holmes a Court
as misleading information, was
'inexplicable' unless one considered the circumstances surrounding the
employment of Mr Jamie Papaconstuntinos.
An objective bystander, with no
personal investment in the bid, would readily have accepted that the two camps
simply had vastly
different perspectives as to the merits of the bid and the
best interests of the Rabbitohs.
71 Further, I do not accept that the publication of those defamatory
statements was warranted in furtherance or protection of Mr Holmes
a Court's
interest. The letter sought Mr Ferguson's 'assistance in checking the facts'
presented, but there was no practicable opportunity
for that to occur between
receipt of the letter on the Friday before the vote and the Sunday when the vote
occurred.
72 Accordingly, adopting the words of Parke B in Toogood v Spyring
cited in Bashford at [54], I do not think the publication of the
defamatory statements as to Mr Holmes a Court's concerns about misuse of funds
was
fairly warranted by any reasonable occasion or exigency. For those reasons,
I am not satisfied that the letter was published on an
occasion of qualified
privilege." (emphasis added)
- Although,
as I have said, the respondent does not challenge the primary judge's finding
that he failed to establish malice, some of
the evidence her Honour considered
in reaching that conclusion should be set out. It explains the appellant's
purpose in sending
the matter complained of, reasons which assumed importance in
the submissions on appeal.
- The
primary judge was satisfied (primary judgment (at [80])) that the appellant held
an honest belief in the truth of what he published.
She extracted (primary
judgment (at [78])) a passage of his cross-examination on this issue as follows:
" 'Q. I put it to you squarely it was the case, wasn't it, that in
writing the letter you were embarking on a matter of tit for tat,
weren't you?
A. No, absolutely not.
Q. Are you saying that you only sent the letter to Mr Ferguson because of the
misinformation you believed Mr Papa was spreading?
A. Absolutely. That's what we were trying to do. We were trying to stop
him spreading information which was incorrect and misleading,
leading up to the
vote.
Q. And that was the sole basis for you sending this letter, wasn't it?
A. I think so. I don't think there is anything else that it was about.
Q. And it had absolutely nothing to do with the belief on your part that Mr
Papa had benefited personally from funds that were meant
to go to the football
club, did it?'
[After an objection, the cross-examination continued]
'Q. It is the case, isn't it, Mr Holmes a Court, that it was never a reason
for you sending a letter to Mr Ferguson that you had any
belief that Mr Papa had
personally benefited from funds meant for the football club?
A. On - on the contrary. It's - that is why we thought he was going to the
extraordinary lengths that he was going to, to prevent
two people putting money
into the football club. We couldn't understand how - what was going on and why
he was working so hard to
prevent money going in. We thought it must have been,
as I believe I have said before, to prevent us getting control, for getting
us -
to prevent us getting to have a deeper look inside the - inside the organisation
and the way it had run and the way money had
moved around the club.
Q. Your sole purpose in sending the matter complained of was to damage Mr
Papa personally to assist your yes campaign, wasn't it?
A. No. It was to stop him making telephone calls. It couldn't have done any
damage on a Friday to Mr Papa that would have helped our
campaign. We were only
trying to stop the misinformation being spread.
Q. And that purpose had nothing to do with any belief on your part that he
had personally benefited from funds meant for the football
club?
A. Sorry if I wasn't clear before when I answered that question but we
believed that the reason that he was making these telephone
calls was because he
had personally benefited from football club funds or sponsor funds and he did
not want us to get in control
of the football club and either change the way it
operates or investigate what had happened in the past. ' " (emphasis added)
- A
further passage was extracted (at [86]) when her Honour considered the
respondent's argument that the appellant's purpose was to
discredit the
respondent:
" 'Q. You sent the letter to Andrew Ferguson using the
information you had or say you had on 20 December 2005 for the purpose of
discrediting
Tony Papa; isn't that correct?
A. Okay, I'll see if I understand the question. I sent the letter on 17 March
2006 for the purpose of discrediting Tony Papa? Is that
the question?
Q. It was, yes?
A. No, I sent the letter to Andrew Ferguson to try and get Andrew Ferguson
to understand that he should do something about investigating
these telephone
calls that were taking place and hopefully bringing them to an end.' "
(emphasis added)
- The
appellant's evidence that he was trying to get Mr Ferguson to stop the
respondent making his telephone calls was not challenged
in cross-examination.
While her Honour confessed to having "some difficulty understanding what basis
[the appellant] had for expecting
Mr Ferguson to intervene to 'stop the calls'
within the short time frame between the sending of the letter and the
Extraordinary
General Meeting", in the absence of cross-examination she
concluded it was not appropriate for her to draw the inference, in substance,
that the appellant's purpose in publishing the mater complained of was to
discredit the respondent: primary judgment (at [98], [100]).
Issues on Appeal
- The
grounds of appeal are:
"1. Her Honour erred in rejecting the defence of common law
qualified privilege.
2. Her Honour erred in finding that the fact the publication was voluntary
was a significant if not determinative factor in determining
the issue of
qualified privilege.
3. Her Honour erred in finding that the appellant did not have the requisite
interest to communicate information about the respondent's
son as there was no
pressing need to do so.
4. Her Honour erred in finding that the appellant did not have the requisite
interest to communicate information concerning the respondent's
alleged
spreading of misinformation.
5. Her Honour erred in finding that the recipients did not have the requisite
interest in receiving information concerning the respondent's
alleged spreading
of misinformation."
- The
respondent has filed a notice of contention seeking to support the primary
judgment on the basis that the primary judge correctly
held that the appellant
had failed to prove the reciprocity of interest necessary to make good his
defence of qualified privilege,
irrespective of whether McHugh J's statement of
principle in Bashford correctly stated the law.
Appellant's submissions
- Mr
B R McClintock of Senior Counsel, who appeared for the appellant on appeal and
at trial with Mr R W Potter, submitted that the
matter complained of was made in
furtherance or protection of the appellant's interests and that its recipients
had a corresponding
interest in receiving it in the following respects (as set
out in the written submissions):
"a. interest of the appellant in conveying information concerning
the conduct of the respondent's son;
b. interest of the appellant in conveying information concerning the conduct
of the respondent in repeating misleading information;
c. interest of the recipients in receiving information concerning the conduct
of the respondent's son;
d. interest of the recipients in receiving information concerning the conduct
of the respondent in repeating misleading information."
- Mr
McClintock expanded on the subject of the interests said to sustain a finding of
qualified privilege in oral submissions which
bore more resemblance to the case
advanced at trial. First, he contended that the Souths' bid was analogous to an
election campaign
in which the respondent was one of the appellant's principal
opponents in the contest as to who would control Souths. The appellant
had an
interest in gaining control of Souths and the respondent had an interest in
opposing that eventuality. Secondly, he pointed
to what he said was the
appellant's recent discovery of the respondent's misleading conduct in relation
to that campaign - a discovery
which put a different complexion on the
information about the respondent's son of which he had become aware during the
due diligence
process. Thirdly, he contended the appellant had an interest in
trying to have the respondent's misleading conduct stopped because
of the
campaign in which he was engaged to gain control of Souths. Fourthly, he
contended there was no rational reading of the matter
complained of other than
that the appellant wanted to stop the respondent spreading misleading
information in relation to the campaign.
Finally, in what he described as an
independent and stand-alone point, Mr McClintock submitted that Bashford
established that the mere possession of information without anything else
was sufficient to found an interest if the information was
given to someone who
had an interest in receiving it - and that that analysis applied to the
appellant.
- Mr
McClintock submitted that, properly understood, the primary judge found against
the appellant on the narrow basis that he had no
interest in publishing the
matter complained of because there was no pressing need at the time to do so,
notwithstanding that her
Honour accepted the recipients had an interest in
receiving the matter complained of - despite there being no pressing need to
convey
it to them.
- Mr
McClintock argued that McHugh J's dissenting judgment in Bashford (at
[73]) insofar as it proposed that "[o]rdinarily the occasion for making a
volunteered statement will be privileged only where
there is a pressing need to
protect the interests of the defendant or a third party" was "diametrically at
odds" with the majority
view in that case (at [25]) that an occasion can be
privileged "where both maker and recipient of the matter complained of have
voluntarily
undertaken the reciprocal duties which make the occasion
privileged." He contended that McHugh J's dissenting judgment in Bashford
should not be followed. He also submitted it was not supported by the
authorities to which McHugh J referred.
- Mr
McClintock's submissions as to the relevance of the fact a defamatory statement
had been volunteered tended to fluctuate between
extremes. At times he argued
that fact was never relevant in determining a defence of qualified privilege. At
others he urged that
even if it was a relevant factor, McHugh J's proposition
that the fact the defendant volunteered defamatory matter was likely to
be
decisive against a finding of qualified privilege was not supported by
authority.
- Mr
McClintock argued that, in any event, it was wrong to ask whether a defamatory
publication was volunteered. Rather, the question
was whether the defendant had
an "interest" in communicating the defamatory publication at the time it was
made. If there was such
an interest, the fact the statement was volunteered was
irrelevant. If there was no interest, there was no occasion of qualified
privilege.
- Mr
McClintock contended that the notion of a "pressing need" introduced an
uncertain temporal issue as to when such a need existed
and also whether an
existing interest could expire and in what circumstances, as to which there was
little or no satisfactory authority.
He argued that the better view was that
delay, if found, went to malice not interest.
- Mr
McClintock argued, in the alternative, that even if it was relevant that the
communication was voluntary and that it must be necessary
that there be a
pressing need to communicate the defamatory allegation, the fact that the
appellant had had prior knowledge of the
information relating to Mr Jamie
Papaconstuntinos did not mean that there was no pressing need to protect his
interests at the time
of publication. Rather, he contended the appellant had a
pressing need to protect his interest by securing a favourable vote at the
EGM -
two days later. It was in his interest to stop the respondent communicating the
misleading information prior to that meeting.
- Mr
McClintock further contended that i f the primary judge had not been influenced
by the issue of voluntariness and pressing need,
her Honour would have found the
appellant had an interest in publishing the corruption allegations which,
coupled with the unchallenged
findings that the CFMEU had an interest in
receiving those allegations, meant the defence of qualified privilege was
established
in that respect.
- Next
Mr McClintock submitted that given that the appellant believed the corruption
allegations explained why the respondent was spreading
misinformation about the
bid which he believed Mr Ferguson could stop, he also had an interest in
communicating the misleading allegation.
Alternatively he argued that the
misleading allegation was germane and reasonably appropriate to the occasion of
qualified privilege
so as to attract protection. He argued that the misleading
allegation was inextricably linked with the corruption allegations. He
pointed
out that while the primary judge found (primary judgment (at [70])) the
connection to be tenuous for the purpose of creating
an interest in the
recipients, her Honour did not find they were completely unconnected.
- Finally,
insofar as the appellant had submitted on the leave application that the Court
of Appeal decisions to which the primary judge
referred (primary judgment (at
[46])) were wrongly decided, Mr McClintock adopted the analysis of those
decisions in Megna v Marshall [2010] NSWSC 686 (at [153] - [166]) and
contended that the voluntariness/pressing need proposition was not a part of the
central findings in any of
them. He also drew the Court's attention to two other
cases - Mundine v Brown (No 6) [2010] NSWSC 1285 and Ryan v
Premachandran [2009] NSWSC 1186, in which he said judges of the Common Law
Division had applied the three Court of Appeal decisions. He did not make any
submission
as to whether or not those two cases misapplied the voluntariness
principle identified by McHugh J.
Respondent's submissions
- Mr
T K Tobin of Queens Counsel, who appeared for the respondent on appeal but not
at trial, with Mr R K Weaver, submitted that the
primary judge correctly
concluded that the appellant failed to prove the existence of the necessary
reciprocity of interest to establish
a defence of qualified privilege at common
law.
- Mr
Tobin contended that the primary judge's judgment in the respondent's favour was
sustainable whether or not the concept of voluntariness
her Honour extracted
from McHugh J's reasons in Bashford was good law. He accepted that her
Honour correctly concluded that the recipients of the matter complained of had
no interest in the
misleading allegation, but did have an interest in the
corruption allegations. However he argued that if the CFMEU did not have an
interest in the Souths campaign, there could be no reciprocity of interest - no
matter what the appellant's interest was.
- Mr
Tobin submitted that in the light of the primary judge's conclusion that the
CFMEU did not have a legitimate interest with respect
to the conduct of the
respondent in Souths' affairs, the appellant had to prove that he had a
legitimate interest in communicating
the corruption allegations in order to have
Mr Ferguson stop the respondent's telephone campaign against the yes vote.
- Mr
Tobin argued that the primary judge correctly concluded that the appellant had
not proved that interest having regard to the lapse
of time since the
respondent's son was employed by Souths (primary judgment (at [69])), the fact
Souths had dealt with those events
some time earlier (primary judgment (at
[70])), the tenuous connection between the misleading allegation and the
corruption allegations
(primary judgment (at [70])) and the fact there was no
practicable opportunity for Mr Ferguson to check the facts between when the
letter was sent and the EGM: primary judgment (at [71]).
- While
he accepted that the primary judge referred to volunteering of the information
and pressing need, Mr Tobin submitted that those
factors were not decisive in
her rejection of the defence.
- Mr
Tobin submitted that, properly understood, Gleeson CJ, Hayne and Heydon JJ in
their joint judgment and Gummow J in Bashford , found that the defendant
in that case had a duty to publish the matter complained of and that its
recipients had an interest in
the information it contained. On that approach, he
argued that the passages in McHugh J's dissenting judgment dealing with the
volunteering
of defamatory matter were not at odds with that conclusion. He
further argued that McHugh J did not apply an absolute test that,
absent
pressing need, volunteered statements were not privileged - only that it was "an
important - often decisive - factor": Bashford (at [74]).
- In
any event, Mr Tobin submitted that the principle with regard to voluntary
statements was long established in Australian jurisprudence
and was upheld by
the majority in Bashford as being a relevant factor in determining an
issue of qualified privilege.
- Mr
Tobin further submitted that because the primary judge found there was no
pre-existing reciprocity of interest between the appellant
and Mr Ferguson (the
CFMEU) in relation to the misleading allegation, the appellant had to prove
something more than a "tenuous link"
between the vote to be taken at the EGM and
the corruption allegations.
- Finally,
Mr Tobin contended that the primary judge's finding that there was only a
"tenuous link" between the corruption allegations
and the respondent's
opposition to the bid should be understood as a finding that the appellant had
not established the requisite
interest to convey the corruption allegations.
Nor, he contended, should the primary judgment be understood as finding that any
interest
the appellant might have about the corruption allegations had expired.
Rather the judgment should be understood as meaning the appellant
had not
established that he had an interest in communicating the corruption allegations
"on this occasion".
- Because
the appellant was unsuccessful in linking the two kinds of defamatory
allegations, Mr Tobin submitted the defence of qualified
privilege should fail
irrespective of the issue of voluntariness. This appeared to be a submission
that the misleading allegation
could not be said to be "germane and reasonably
appropriate to the occasion" of the publication of the corruption allegations.
The rationale for the defence of qualified privilege
There is no debate about the broad principles of the defence of qualified
privilege. They can be briefly stated, albeit with emphasis
on the underlying
rationale for the privilege. What should be emphasised at the outset is that
"'the circumstances that constitute
a privileged occasion can themselves never
be catalogued and rendered exact' [and] ... that in order to apply the
principles, a court
must 'make a close scrutiny of the circumstances of the
case, of the situation of the parties, of the relations of all concerned
and of
the events leading up to and surrounding the publication'": Bashford (at
[10]) per Gleeson CJ, Hayne and Heydon JJ (with whose reasons on qualified
privilege Kirby J agreed (at [178]); (at [139]) per
Gummow J; see also Guise
v Kouvelis [1947] HCA 13; (1947) 74 CLR 102 (at 116) per Dixon J. Griffith
CJ (with whom Barton J agreed) spoke to like effect in Howe & McColough v
Lees [1910] HCA 67; (1910) 11 CLR 361 (at 369), saying "[i]t is obviously
impossible to lay down a priori an exhaustive list of such occasions. The
rule being founded upon the general welfare of society, new occasions for its
application
will necessarily arise with continually changing conditions."
- McHugh
J also recognised in Bashford (at [72]) that "the categories of duty are
not closed [and] [t]he law will recognise a duty whenever 'the great mass of
right-minded
men in the position of the defendant would have considered it their
duty, under the circumstances, [to make the communications]'".
He too, as the
primary judge acknowledged, emphasised (at [63]) the necessity to "consider all
the circumstances and ask whether
this publisher had a duty to publish or
an interest in publishing this defamatory communication to this
recipient." (emphasis in original)
- As
Parke B explained in Toogood v Spyring [1834] EngR 363; (1834) 1 Cr M & R 181 (at
193); [1834] EngR 363; 149 ER 1044 (at 1049-1050) qualified privilege protects:
"...the malicious publication of statements which are false in
fact, and injurious to the character of another (within the well-known
limits as
to verbal slander), and the law considers such publication as malicious,
unless it is fairly made by a person in the discharge of some public or private
duty,
whether legal or moral, or in the conduct of his own affairs, in matters
where his interest is concerned. In such cases, the occasion prevents the
inference of malice, which the law draws from unauthorized communications, and
affords a
qualified defence depending upon the absence of actual malice. If
fairly warranted by any reasonable occasion or exigency, and honestly made, such
communications are protected for the common convenience
and welfare of society;
and the law has not restricted the right to make them within any narrow limits
." (emphasis added)
- The
cases in which Parke B's statement has been applied are legion. As the majority
(French CJ, Gummow and Hayne JJ) in Aktas v Westpac Banking Corporation
Limited [2010] HCA 25; (2010) 84 ALJR 551 (at [15]) recognised, it is the
"generally accepted statement of principle". It was quoted in the joint reasons
(Gleeson CJ, Hayne
and Heydon JJ) in Bashford (at [9]) with the
observation, "[r]eciprocity of duty or interest is essential" (see also Gummow J
(at [136]), a proposition to which
I will return.
- The
doctrine of qualified privilege, as Evatt J (with whom Rich and McTiernan JJ
agreed) observed in Telegraph Newspaper Co Ltd v Bedford [1934] HCA 15;
(1934) 50 CLR 632 (at 654), has "only been developed in comparatively modern
times, Lord Mansfield being largely responsible"; see also Bashford (at
[123]) per Gummow J. Evatt J also noted ( Telegraph Newspaper Co Ltd v
Bedford (at 657)), that in London Association for Protection of Trade v
Greenlands Ltd [1916] 2 AC 15 (at 22), Lord Buckmaster observed:
"...I do not think that any of the subsequent explanations, or
definitions [since Toogood v Spyring ], have made any variation in the
principle thus enunciated, nor added anything by way of explanation to this
clear exposition of
the law. The long list of subsequent authorities to which
your Lordships were referred do nothing but afford illustrations of the
different circumstances to which this principle may be applied."
- The
rationale for the defence of qualified privilege was discussed in Aktas
(at [22]) , where the majority said (footnotes omitted):
"In Justin v Associated Newspapers Ltd , Walsh JA said that
the 'broad principle' underlying qualified privilege is that occasions exist in
which it is desirable as a matter
of public policy that freedom of communication
should be given priority over the right of the individual to protection against
loss
of reputation. It also has been said that the categories (if there be
utility in a system of categories) of occasions of qualified
privilege are not
closed and cannot be rendered exact. Cases of reciprocity, or as Griffith CJ
put it, 'community of interest', supply a recognised category, which in turn has
an indeterminate
reference. The limits of that range of reference in a given
case are to be placed by regard to the 'broad principle' identified by Walsh JA
and
to the remarks of Dixon J in Guise v Kouvelis as follows:
'But the very width of the principles governing qualified privilege for
defamation makes it more necessary, in deciding how they apply,
to make a close
scrutiny of the circumstances of the case, of the situation of the parties, of
the relations of all concerned and
of the events leading up to and surrounding
the publication." (emphasis added)
- Dixon
J's judgment in Guise v Kouvelis was a dissenting one but, as the
reference in Aktas indicates, it commands acceptance. It was cited in
Bashford (at [139]) by Gummow J (who formed part of the majority) and by
McHugh J (at [73]) in dissent. As Gummow J pointed out in Bashford (at
[141]), the necessity in cases where a defence of qualified privilege is raised,
to focus closely on the circumstances of each
case may lead to the consequence
(as illustrated in his Honour's view by Guise v Kouvelis ) that
"different minds, whilst informed of the legal principles, nevertheless may
differ as to the outcomes in particular cases".
Evatt J noted statements to like
effect in Telegraph Newspaper Co Ltd v Bedford (at 657).
The notion of duty and interest
- There
is no bright line rule separating the concepts of duty and interest to which
Parke B referred in Toogood v Spyring . As Griffith CJ (with whom Barton
J agreed) said in Howe & McColough v Lees (at 368 - 370):
"The words 'some social or moral duty' and 'on the ground of an
interest in the party making or receiving it' have been sometimes
taken as
laying down a sharp line of demarcation between what is spoken of as 'duty' and
what is spoken of as 'interest.' But when
the real principle on which the rule
is founded is understood it becomes apparent that the two matters often overlap.
The words of
Parke B. in Toogood v. Spyring : -'If fairly warranted by
any reasonable occasion or exigency, and honestly made, such communications are
protected for the common
convenience and welfare of society' - supply the key.
The reference to society does not mean that the person who makes the
communication
is under any obligation to publish, and is justified in
publishing, it to the public at large, but that the interests of society
in
general require that a communication made under such circumstances to the
particular person should be protected. The term 'moral duty' is not used in a
sense implying that a man who failed to make the communication under the
circumstances would
necessarily be regarded by his fellows as open to censure,
but in the sense implying that it was made on an occasion on which a man
who
desired to do his duty to his neighbour would reasonably believe that he ought
to make it. ... With regard to the privilege founded upon what is called
interest it is contended that the person who makes the communication and
the
person to whom it is made must have a common interest. 'Community of interest'
is, I think, a more accurate term .
...
The term 'community of interest' does not connote a joint pecuniary interest
in property. Any legitimate object for the exercise of human faculties
pursued by several persons in association with one another may be sufficient
to
establish community of interest. Again: 'interest' does not mean an interest
in the particular subject matter as to which the communication is made, but an
interest
in knowing the fact communicated, in other words, an interest in the
subject matter to which the communication is relevant, as for instance the
solvency of a probable customer ."
- O'Connor
J ( Howe & McColough v Lees (at 377)) also observed:
"The interest relied on as the foundation of privilege must be
definite. It may be direct or indirect, but it must not be vague or
unsubstantial. So long as the interest is of so tangible a nature that for the
common convenience and welfare of society it is expedient
to protect it, it will
come within the rule."
- Higgins
J ( Howe & McColough v Lees (at 396)), also explained the nature of
the "interest" involved, and matters of timing, as follows:
"What kind of interest is required? It certainly is not any
proprietary interest; it need not even be any pecuniary interest. In Whiteley
v. Adams a rector used defamatory words of a curate, not of his parish, to
another curate, and to a lady; and the occasion was privileged,
though there was
no money or property possibly involved. In Clark v. Molyneux a vicar told
his curate what he had heard about another curate, and asked his advice what to
do. There was no pecuniary interest;
and yet there was privilege. In Harrison
v. Bush the statement was made to the Secretary of State with regard to a
justice of the peace, and the statement was privileged, on the ground
of the
interest of the Queen in having worthy justices. In Child v. Affleck a
lady wrote about the conduct of a discharged servant to persons who had
recommended the servant to her, and the statement was held
to be privileged.
It is urged, however, that no dealing was imminent or in contemplation
between Lees and any of the other auctioneers. I cannot see
why this fact should
prevent the communication from being 'fairly warranted by a reasonable occasion
or exigency.' The occasion may
be reasonable, even if a dealing is not actually
proposed. " (emphasis added) ...
(at 398) The truth seems to be that the word 'interest,' as used in the
cases, is not used in any technical sense. It is used in the
broadest popular
sense, as when we say that a man is 'interested' in knowing a fact-not
interested in it as a matter of gossip or
curiosity, but as a matter of
substance apart from its mere quality as news." (emphasis added)
- In
all of the cases to which Higgins J referred as having been successfully
defended on the basis of qualified privilege, the defamatory
statement was
volunteered.
- The
duty to convey the information is not confined to legal duties which may be
enforced by curial remedy, "but must include moral
and social duties of
imperfect obligation": Bashford (at [137], [145]) per Gummow J; see also
Ronald v Harper [1910] HCA 43; (1910) 11 CLR 63 (at 74) per Griffith CJ;
Aktas (at [68]) per Heydon J citing Harrison v Bush [1855] EngR 41; (1855) 5 El
& Bl 344 (at 349); [1855] EngR 41; 119 ER 509 (at 512) per Lord Campbell CJ; Watt v
Longsdon [1930] 1 KB 130 (at 144) per Scrutton LJ ("moral or social
duties").
- In
Watt v Longsdon (at 144) in the passage to which Heydon J referred,
Scrutton LJ discussed the difficulty of determining the issue of qualified
privilege
when the question was whether the defendant had a moral or social duty
to publish. His Lordship said:
"As to legal duty the judge should have no difficulty; the judge
should know the law; but as to moral or social duties of imperfect
obligation,
the task is far more troublesome. The judge has no evidence as to the view the
community takes of moral or social duties.
All the help the Court of Appeal can
give him is contained in the judgment of Lindley LJ in Stuart v. Bell
[1891] 2 Q.B. 341, 350: 'The question of moral or social duty being for the
judge, each judge must decide it as best he can for himself. I take moral
or
social duty to mean a duty recognized by English people of ordinary intelligence
and moral principle, but at the same time not
a duty enforceable by legal
proceedings, whether civil or criminal.'"
- The
duty or interest must exist in fact. A mere belief in its existence is not
sufficient: Adam v Ward [1917] AC 309 (at 334); see also Bonette v
Woolworths Ltd (1937) 37 SR (NSW) 142 (at 148) per Jordan CJ.
Reciprocity of interest or duty
- According
to Scrutton LJ ( Watt v Longsdon (at 146)) , the proposition that
"both parties, the writer and the recipient, must have a corresponding interest
or duty" was first articulated
by Lord Campbell CJ in Harrison v Bush (at
348) who, when giving the judgment of the Court of Queen's Bench, accepted a
principle stated by counsel as:
"A communication made bona fide upon any subject matter in which
the party communicating has an interest, or in reference to which
he has a duty,
is privileged, if made to a person having a corresponding interest or duty,
although it contain criminatory matter
which, without this privilege, would be
slanderous and actionable."
- According
to Scrutton LJ ( Watt v Langsdon (at 147)):
"...except in the case of communications based on common interest,
the principle is that either there must be interest in the recipient
and a duty
to communicate in the speaker, or an interest to be protected in the speaker and
a duty to protect it in the recipient.
Except in the case of common interest
justifying intercommunication, the correspondence must be between duty and
interest. There
may, in the common interest cases, be also a common or
reciprocal duty. It is not every interest which will create a duty in a stranger
or volunteer."
- Because
reciprocity of interest or duty is essential to a claim of qualified privilege
at common law, ordinarily that defence only
lies in relation to limited
publications: Lange v Australian Broadcasting Corporation [1997] HCA 25;
(1997) 189 CLR 520 (at 570, 572). As Callinan J observed in Roberts v Bass
[2002] HCA 57; (2002) 212 CLR 1 (at [215]); see also Telegraph Newspaper
Co Ltd v Bedford (at 658 - 660), prior to Lange , that proposition
had held good in all but a "few exceptional cases" - to which "exceptional"
class, I would observe, Bashford might now be added. As the primary judge
recognised, however, the matter complained of fell into the unexceptional class
- having
been published, relevantly, only to three people all of whom worked for
the CFMEU, the respondent's employer.
- No
doubt in recognition of Parke B's final proposition in Toogood v Spyring
[1834] EngR 363; (1 Cr M&R 181 (at 193); [1834] EngR 363; 149 ER 1044 (at 1050)) that "the law has not
restricted the right to make [such publications] within any narrow limits",
Dixon J said in Mowlds v Fergusson [1940] HCA 38; (1940) 64 CLR 206 (at
214 - 215) that "[w]here the defamatory matter is published in ... protection of
an interest ..., the conception of a corresponding
duty or interest in the
recipient must be very widely interpreted". After noting that Parke B in
Toogood v Spyring spoke of communications "fairly made by a person ...in
the conduct of his own affairs, in matters where his interest is concerned",
Dixon J added, "...and demands no community, reciprocity or correspondency
either of interest or duty". His Honour repeated these
statements in Guise v
Kouvelis (at 125).
Voluntary communications
- The
primary judge (at [44] - [46]) was strongly influenced by McHugh J's statements
in Bashford in respect of a voluntarily published statement, as well as
the fact his Honour's remarks had been referred to in this Court. Her
Honour
expressed the view (at [46]) that although "McHugh J dissented in the result, I
do not think that his dissent turned on a
different view of the principle that
the fact that the defamatory statement has been volunteered is a relevant
factor". That statement
is true, as far as it goes.
- I
analysed Bashford in Linholdt (at [85] - [93]) in terms which do
not require repetition. Suffice it to say that the majority decision in
Bashford does not stand for the proposition for which Mr McClintock
contended, that voluntariness is never a relevant factor in determining
a
question of qualified privilege. Rather, the joint judgment recognised (
Bashford , at [25], see Linholdt (at [89])) that "[t]here will be
cases where an occasion is privileged but where both maker and recipient of the
matter complained
of have voluntarily undertaken the reciprocal duties which
make the occasion privileged." Their Honours were careful ( Bashford at
[26]) to distinguish the facts of that case from other paid (and sub
silentio, volunteered) publications on the basis of "the narrow focus of
both its subject matter and its readership [those with an interest
in workplace
health and safety]", and, too, from "the general news media."
- Two
matters did clearly separate the majority approach in Bashford from
McHugh J and - in my view - were the matters on which the primary judge's
decision adverse to the appellant in large part rested.
- One
was McHugh J's statement that "[o]rdinarily the occasion for making a
volunteered statement will be privileged only where there
is a pressing need to
protect the interests of the defendant or a third party or where the defendant
has a duty to make the statement
to the recipient": Bashford (at [73]) -
the question of "pressing need" was a matter to which the majority made no
reference.
- The
other was his Honour's further, and clearly related, view that, absent immediate
danger or harm to the person or injury to property,
the fact the defendant
volunteered the statement was "an important - often decisive - factor in
determining whether the occasion
was privileged": Bashford (at [74],
[77], [81], [94]). This might be contrasted with his Honour's statement in
Stephens v West Australian Newspapers Ltd [1994] HCA 45; (1994) 182 CLR
211 (at 266) that "[t]he officiousness of the person publishing the information
can never be decisive against the existence of an occasion
of qualified
privilege, although it may be relevant in determining whether there was a duty
to publish to the world at large."
- Although
both matters were expressed in McHugh J's dissenting reasons, they require
careful scrutiny. McHugh J's reputation as an
expert in the law of defamation
cannot be gainsaid. Dissenting opinions, it has been said, can sometimes take on
a life of their
own - even, sometimes, becoming more "authoritative" than the
precedent itself: N Duxford, The Nature and Authority of Precedent ,
(2008) Cambridge University Press at 62, footnote 19, citing Justice Holmes's
dissent in Lochner v New York [1905] USSC 100; 198 US 45 (1905). This is particularly the
case where "the judge delivering the opinion is a renowned expert in the
relevant area of law":
ibid . I have already referred to the authority
Dixon J's dissenting opinion in Guise v Kouvelis has attained. Another
recent illustration can be seen in Aktas v Westpac Banking Corp Ltd (No 2)
[2010] HCA 47; (2010) 85 ALJR 302 (at [6]) where the majority (French CJ,
Gummow and Hayne JJ) cited Mason CJ's dissenting reasons in Autodesk Inc v
Dyason [No 2] [1993] HCA 6; (1993) 176 CLR 300 (at 301 - 302) on the
jurisdiction to reopen a judgment, observing that the fact his Honour dissented
in the result did not deny
the accuracy of the propositions he advanced.
- Sir
Rupert Cross has said of the exercise of discerning the ratio decidendi ,
"perhaps we should not make a shibboleth of any requirement that there may be in
this context that dissenting judgments should be
disregarded; they may at least
contain weighty dicta": Precedent in English Law , 4th ed (1991)
Clarendon Press Oxford at 92 cited by Gummow and Hayne JJ in Jones v Bartlett
[2000] HCA 56; (2000) 205 CLR 166 (at [206]). However, it would not be
proper to seek to extract a binding authority from an opinion expressed in a
dissenting judgment:
Federation Insurance Ltd v Wasson [1987] HCA 34;
(1987) 163 CLR 303 (at 314) per Mason CJ, Wilson, Dawson and Toohey JJ.
Nevertheless, "there is force in the statement that 'from the realistic point
of
view, we are not sure of the ratio of a decision until we can discover its
reception and its treatment by subsequent cases'":
Jones v Bartlett (at
[206]) per Gummow and Hayne JJ, citing George Paton and Professor Sawer, "
Ratio Decidendi and Obiter Dictum in Appellate Courts " (1947) 63 Law
Quarterly Review 461, 480.
The challenged Court of Appeal authorities
- Recognition
of McHugh J's expertise in the defamation field is seen, in my view, in the
decisions of this Court referred to earlier
in these reasons in which his
Honour's reasons in Bashford have been cited, which the appellant
suggests should be overruled.
- Goyan
v Motyka concerned defamatory statements in a number of letters the
defendants wrote to members of the Ukrainian community and in a book written
in
both Ukrainian and English in which some of the letters were reproduced. The
primary judge had rejected a defence of common law
qualified privilege. Tobias
JA wrote the leading judgment dismissing the appeal, with which Giles JA agreed.
Handley AJA generally
agreed with Tobias JA's reasons and added some comments to
which I will return. Tobias JA referred at length (at [86]) to McHugh
J's
judgment in Bashford (at [65], [71], [73] and [77]) noting his Honour
"dissent[ed] on the facts" and that the parties in Goyan accepted that
judgment as an accurate statement of the law on common law qualified privilege.
For the reasons I have given it cannot,
in my view with respect, be said that
McHugh J only "dissent[ed] on the facts" in Bashford . Tobias JA (at
[88]) regarded the fact that the defendants volunteered the defamatory
information as a relevant factor in considering
the defence of qualified
privilege. His Honour also referred (at [92]) to the fact that two of the
letters "referred to events relating
to a third party which had occurred some
six or seven years prior to their publication" which, in his view "...was stale
and did
not constitute a relevant matter of interest." His Honour did not treat
either factor as "decisive" or uphold the rejection of the
defence of qualified
privilege on that ground alone. In his additional comments, Handley AJA remarked
(at [120]):
"In my opinion the time that has elapsed since events referred to
in a defamatory publication does not necessarily take that publication
outside
the scope of common law qualified privilege, or afford evidence of malice. An
allegation of sexual abuse by a teacher many
years before would not, for that
reason alone, be outside the privilege, and the same would apply to allegations
of past financial
misconduct by a person in a position of trust."
- Linholdt
v Hyer concerned a publication called Cabbie , which was concerned
with the taxicab industry and which was distributed free of charge by delivery
to places like taxi depots and
washes and LPG service stations frequented
principally by taxi drivers: see [32]. The primary judge concluded the matters
complained
of were published on occasions of qualified privilege, but that the
defendants were actuated by malice in their publication. On appeal
I considered
both the issue of qualified privilege and malice, finding the primary judge had
erred in his decision on the former
question but not on the latter. Giles JA and
Basten JA agreed that the appeal should be dismissed, but only on the basis that
the
primary judge had not erred in his malice finding. As I have said I analysed
Bashford, in the course of which I referred both to the joint reasons and
the concurring judgments of Gummow and Kirby JJ and to McHugh J's
dissenting
judgment. I concluded (at [161]) that the primary judge had erred in finding the
matter complained of was published on
an occasion of qualified privilege because
Cabbie was published to the general public and that Bashford was
distinguishable on this basis. I also (at [162]) regarded it as significant
"that the statements made in Cabbie were voluntary",
observing that they were
not published in any of the circumstances to which McHugh J referred to in
Bashford (at [77]) and stating that Goyan had acknowledged that
that was "almost a decisive factor against a conclusion of qualified privilege".
My reconsideration of Goyan has not identified the source of that
comment. To the extent that Bashford (at [77]) referred to the fact that
"neither life is in immediate danger nor harm to the person or injury to
property imminent" as
"likely to be decisive against a finding of qualified
privilege", I now accept that that is not supported by authority as will be
apparent from the following discussion. However my reasons in Linholdt on
the qualified privilege issue were not necessary to the resolution of that
appeal.
- Bennette
v Cohen concerned defamatory statements made at two public meetings. Both
Ipp and Tobias JJA dealt with the issue of qualified privilege.
Both cited the
impugned passage from McHugh J's reasons in Bashford (at [73]); Ipp JA
(at [21]); Tobias JA (at [145]). Campbell JA (at [206]) agreed with Ipp JA's
reasons insofar as they concerned qualified
privilege. After a review of many
authorities about common law qualified privilege, Ipp JA (at [25]) summarised
the propositions
which, in his view, they supported. Point (d(iv)) quoted the
second sentence in McHugh J's reasons in Bashford (at [73]), that
"[o]rdinarily, a volunteered statement is privileged only where there is a
pressing need to protect the interests
of the defendant or a third party, or
where the defendant has a duty to make the statement". That being said, his
Honour examined
all the circumstances of the defamatory publications in reaching
his conclusion (at [55]) that there was no reciprocity of interest
between the
defendant and the audiences at the meetings. One of the factors he considered
relevant (at [60]) was the fact that the
defendant volunteered the defamatory
statements. Tobias JA also referred to that factor (at [151]). However neither
Ipp JA nor Tobias
JA treated the fact that the defendant's statements were
volunteered as decisive of the issue of qualified privilege, nor was their
timing of any relevance in their Honours' rejection of the defence.
- There
is no doubt, however, that trial judges and members of the profession would be
entitled to regard the imprimatur given to McHugh
J's statement by judges of
appeal as significant. That that is the case is illustrated not only by the
decision under appeal, but
by the cases to which Mr McClintock drew the Court's
attention (see [66]) and more recently in Haddon v Forsyth [2011] NSWSC
123 (at [329]) where Simpson J rejected a submission based on the "pressing
need" proposition. It would not be appropriate to do more
than note those
decisions. Whether or not they were correctly resolved should be determined in
the event of any appeal.
- As
is apparent from the foregoing analysis, however, none of the impugned Court of
Appeal decisions turned on the application of McHugh
J's dissenting judgment on
either the issue of voluntariness or "pressing need" being a decisive factor.
There is no occasion for
any of them to be overruled.
The
authorities to which McHugh J referred
- In
footnote (113) to his statement in Bashford (at [73]) that:
"Ordinarily the occasion for making a volunteered statement will be
privileged only where there is a pressing need to protect the
interests of the
defendant or a third party or where the defendant has a duty to make the
statement to the recipient. The common
law has generally perceived no advantage
to society in giving qualified privilege to volunteered statements in the
absence of a pre-existing
reciprocity of interest between the defendant and the
recipient"
McHugh J cited Wyatt v Gore [1816] EngR 671; (1816) Holt 299; 171 ER 250; Brooks v
Blanshard [1833] EngR 33; (1833) 1 C & M 779; 149 ER 613; Wenman v Ash [1853] EngR 692; (1853) 13
CB 836; 138 ER 1432; Dickeson v Hilliard (1874) LR 9 Exch 79; Thomas v
Moore [1918] 1 KB 555; Guise v Kouvelis ; Andreyevich v Kosovich
(1947) 47 SR (NSW) 357.
- There
was, with respect, no express statement of principle as to pressing need in the
terms his Honour articulated in the authorities
he cited in that footnote.
Although issues of timing were of some relevance in the older decisions, in
none, in my view is it apparent
that that issue was decisive in rejecting the
defence of qualified privilege.
- Wyatt
v Gore concerned a letter written by the Lieutenant-Governor of Upper Canada
to the Attorney-General concerning the conduct of the plaintiff,
the
Surveyor-General of Upper Canada. The defendant had suspended the plaintiff from
his employment in 1807. In 1809 the defendant
sent what was described as a
"pamphlet" to the Attorney-General which contained the alleged libel. It was
said to have "charged [the
plaintiff] with gross misconduct and an abuse of his
powers as surveyor-general of the province". That document had not been
generally
circulated but was held by "the principal civil officers of the
province" (Holt 299 (at [302]); [1816] EngR 671; 171 ER 250 (at 252)). Gibbs CJ appears to have
dealt with the issue of the timing of the publication as going to malice (Holt
299 (at [305]);
[1816] EngR 671; 171 ER 250 (at 253)). The pamphlet was not circulated until two
years after the plaintiff's suspension and made no specific reference to the
grounds of that suspension. It appears to have been accepted, however, that the
pamphlet was published on an occasion of qualified
privilege, but that the
plaintiff had demonstrated that the defendant was actuated by malice in its
publication.
- Brooks
v Blanshard concerned an opinion the defendant expressed about the
plaintiff, an engineer, in a letter to a third party C. The letter reflected
on
the plaintiff's conduct when he was an engineer to a railway company. The
defendant and C were both shareholders in the railway
company. A vacancy
occurred in the situation of engineer to the Commissioners for the improvement
of the River Wear - a position
which was apparently the subject of election. The
plaintiff became a candidate, but was unsuccessful in the first election. The
matter
complained of was written after that election and before another election
was contemplated. The plaintiff was unsuccessful at the
later election because
of the publication of the matter complained of. The principal issue debated
appears to have been whether the
record which set out the libel could be varied
to accord with the oral testimony of witnesses who gave evidence about its
contents,
the written record of the original having been destroyed. To the
extent that the issue of qualified privilege was the subject of
"reasons" (being
only discernible from parenthetical judicial observations made in the course of
argument), it is apparent that the
court considered it relevant in rejecting the
defence that the defendant had volunteered his opinion at a time when no
election,
at which presumably the plaintiff's qualities as an engineer could be
debated, was contemplated: [1833] EngR 33; (1 C & M 779 (at [783]); [1833] EngR 33; 149 ER 613 (at 616 -
617)). Brooks v Blanshard comes closest to supporting Bashford (at
[77]) as to the issue of voluntariness, but not as to the "pressing need"
proposition. So far as my researches reveal, Bashford is the only case in
which Brooks v Blanshard has been cited.
- Wenman
v Ash concerned a letter the defendant wrote to the plaintiff's wife
complaining in substance that the plaintiff had stolen goods from him
while he
was a tenant in their house. The defendant volunteered the matter complained of.
The substantial debate in the case appears
to have been as to whether there was
any publication, counsel for the defendant having submitted that "the sending
the letter to
the plaintiff's wife, was like sending it to the plaintiff
himself; for, husband and wife are for all legal purposes one", an argument
the
court rejected. The jury had found the defendant was not actuated by malice in
publishing the matter complained. The argument
as to qualified privilege appears
to have failed not because the defendant was a volunteer, or for any reason
connected to the timing
of the publication but because the defendant "could not
really and bon fide believe that [the plaintiff's wife] was the proper quarter
to address himself to for the purpose of obtaining redress for his supposed
grievance": per Jervis CJ [1853] EngR 692; (13 CB 836 (at [844]); [1853] EngR 692; 138 ER 1432 (at 1436)); Maule,
Cresswell and Talfourd JJ agreeing.
- Dickeson
v Hilliard concerned a publication two days after an election by the
chairman of a candidate's committee and his election agent to the agent
of a
rival candidate, "certifying" that the rival candidate had been personally
guilty of bribery. At the time of publication, the
21 days during which a
petition might have been presented under the Parliamentary Elections Act
1868 (32 & 33 Vict. c 125) s 6 had not elapsed. There was no evidence
that any such petition was in contemplation at the time
of publication. The
trial judge, Kelly CB, ruled as a matter of law that the matter complained of
was not privileged, but left it
to the jury to say whether it was as a matter of
fact and directed them if they thought there was and found no express malice to
find for the defendant. The jury found for the plaintiff. One of the defendants
moved for a new trial on the ground of misdirection
on the issue of privilege.
It is apparent that the fact that the matter complained of was volunteered and
its timing was relevant
to the court's determination that it was not published
on an occasion of qualified privilege. However neither factor could be said,
in
my view, to have been decisive. Rather it was of great significance to the
court, in my view, that the person to whom the matter
complained of was
addressed had no jurisdiction either to punish or inquire into the bribery of
which the plaintiff was accused:
see (at 82, 83) per Kelly CB; (at 85) per
Pigott B; (at 85) per Pollock B.
- Thomas
v Moore concerned statements made by six members of the Associated Society
of Locomotive Engineers and Firemen about the plaintiffs, eight
members of the
National Union of Railwaymen. In June 1915 the plaintiffs and defendants, as
representatives of their respective unions,
met representatives of railway
companies and sought a war bonus of 5s a week for railwaymen, a request which
was not then granted.
The war bonus was granted, at a later meeting in October
the same year. After the bonus was granted the defendants made speeches
at
meetings of railwaymen in substance saying that but for the plaintiffs' conduct
at the June meeting, the bonus would have been
granted then. The plaintiffs
brought an action alleging the defendants had conspired to injure them by
publishing defamatory matter
and that the matters complained of as slanders had
been published in pursuance of that conspiracy. They succeeded at trial, the
trial
judge having apparently ruled as a matter of law that the matters
complained of were not published on a privileged occasion. On appeal,
the issues
raised were whether the primary judge was correct in permitting the plaintiffs
to join the causes of action in conspiracy
to those of slander, whether the
action was maintainable without proof of special damage and a complaint about
whether a declaration
that the defendants had conspired to defame the plaintiffs
should have been made. The appeal was unsuccessful save that it was held
the
declaration should not have been made. Insofar as the defence of qualified
privilege was concerned, only Bankes LJ and Neville
J dealt with the issue
briefly saying (at 571, 572) that the evidence was insufficient to establish any
occasion of privilege. There
was no reference to the fact the slanders were
volunteered, or to their timing.
- In
Guise v Kouvelis , the defendant, who was a member of the Hellenic Club,
said loudly in a room of the club in which a number of people (members of
the
club and others) were present, words to the effect that the plaintiff (who was
not a member) had engaged in crooked behaviour
in playing cards. In an action
for damages for slander, the plaintiff succeeded at trial, but the Full Court
reversed that decision,
Davidson and Maxwell JJ, Jordan CJ dissenting, upholding
the defence of qualified privilege: Guise v Kouvelis (1946) 46 SR (NSW)
419. The High Court upheld the plaintiff's appeal (Latham CJ, Starke, McTiernan
and Williams JJ; Dixon J dissenting). McHugh J ( Bashford at [73])
referred in some detail to the reasons of Latham CJ and Starke J, as well as the
dissenting reasons of Dixon J. As is apparent,
the majority upheld the appeal
essentially on the basis that the defendant had no duty, legal, social or moral
to utter the words
to members of the club in general, and "[t]o hold the
contrary would amount to granting a wide licence to officious and interfering
mischief-makers": at (at 112) per Latham CJ (with whom McTiernan and Williams JJ
agreed); Starke J (at 114). While the fact the statement
was volunteered was
clearly of some significance, once again, there was no reference to the timing
of the slander.
- Andreyevich
v Kosovich was a case in which a publication to the world at large was held
not to be privileged. It concerned an article published in "Napredak",
a
newspaper printed in the Croatian language, which sold for sixpence a copy, of
which one defendant, Kosovich, was the publisher
and proprietor, the other the
printer. Kosovich was also the president of a Yugoslav club. Andreyevich was the
president of another
Yugoslav club. The article, in substance, imputed that the
plaintiff (and three others) "were 'cursers and destroyers' in relation
to a
campaign of liberation ... being conducted in Yugoslavia ... [and were] ...
traitors to their native country and to the Allies
in the war who were
supporting the struggle of the patriots in Yugoslavia ... struggling to win
freedom from the invader": Andreyevich v Kosovich (at 367). The trial
judge refused to direct the jury that the article was published on an occasion
of qualified privilege and the
jury found for the plaintiff. The defendants
moved the Full Court seeking an order that a verdict be entered in their favour.
Jordan
CJ (with whom Street J agreed) held (at 364) that "no one could
reasonably hold it to be expedient in the interest of the people
of New South
Wales as a whole that 'interest' of the kind indicated [in Howe v Lees ]
should justify the publication of such calumny with impunity." Davidson J (at
369) also concluded that the publication exceeded
the limits of a possible
occasion of privilege. Insofar as any issue of voluntariness might be discerned
(none having been expressly
referred to) it was clearly that which applies to
mass media generally. There was no issue of timing.
Coxhead v Richards
- Mr
Tobin referred to Coxhead v Richards [1846] EngR 379; (1846) 2 CB 569; 135 ER 1069 as the
origin of the proposition that the volunteering of defamatory matter will not be
protected by qualified privilege unless it
is an answer to a pressing need.
- In
Bashford , McHugh J (at [75]) cited Coxhead v Richards as
authority for the proposition that "where imminent injury to the person or loss
or damage to property is concerned, the common
law has given a wide protection
to defamatory communications initiated by a defendant where they are necessary
to protect the immediate
interests of a person - usually the recipient". That
statement should be understood by careful consideration of the source and its
subsequent reception.
- Coxhead
v Richards concerned the question whether a stranger had a defence of
qualified privilege in circumstances where he informed the owner of a ship
that
its captain was constantly drunk and unfit to command. He based his statement on
a letter he had received from a crew member
of the ship seeking his advice as to
what he should do with that information. He had no personal interest in the
subject matter of
the defamatory communication, but as Tindal CJ explained [1846] EngR 379; (2 CB
569 (at 595); [1846] EngR 379; 135 ER 1069 (at 1080)), considered it to be his duty to
communicate the information to the ship's owner so that he could "investigate
the truth
and take such steps as prudence and justice to the parties concerned
required".
- Tindal
CJ [1846] EngR 379; (2 CB 569 (at 595); [1846] EngR 379; 135 ER 1069 (at 1081)) accepted that if the defendant had
had a personal relationship with the defendant or even if the "danger disclosed
by
the letter, either to the ship or the cargo, had been so immediate as that
the disclosure to the ship-owner was necessary to avert
such danger", the
publication would have been protected. It was to this passage in Coxhead v
Richards that McHugh J appears to have been referring in Bashford (at
[75]). Tindal CJ rejected the plaintiff's submission that it was incumbent on
the defendant to investigate the charge himself.
He considered that although the
ship was not to sail for a month, the crew of the ship was exposed to a hazard,
even though the hazard
presented by the ship remaining in port was not as great
as if it had been at sea. The ship-owner was also injured by "the want of
discipline of the crew, and the bad example of such a master." Accordingly he
held [1846] EngR 379; (2 CB 569 (at 595); [1846] EngR 379; 135 ER 1069 (at 1081)) that the publication of the
defamatory material to the person best able to adopt "the most proper and
effective means
to avert the danger" was protected. Erle J [1846] EngR 379; (2 CB 569 (at 608);
[1846] EngR 379; 135 ER 1069 (at 1085)) expressed the view that there are cases where "the
protection appears ... to be derived from the relation in which the
receiver of
the information stands to the person who is the subject of it; as in the case of
information given to prevent danger
from misconduct; and for this class I think
it is not essential that the giver of the information should stand in any
relation to
other parties." He identified this rule as founded on a
consideration of the importance of the information to the receiver - in this
case of knowing the "character of a servant".
- Coltman
J's reason for finding against the defendant was expressed as follows [1846] EngR 379; (2 CB 569
(at 601); [1846] EngR 379; 135 ER 1069 (at 1082)):
"The duty of not slandering your neighbour on insufficient grounds,
is so clear, that a violation of that duty ought not to be sanctioned
in the
case of voluntary communications, except under circumstance of great urgency and
gravity."
- Cresswell
J [1846] EngR 379; (2 CB 569 (at 604); [1846] EngR 379; 135 ER 1069 (at 1084)) concluded that absent any
relationship with the owner, the defendant as a stranger was under no public or
private duty
to make the communication. In particular he found that the
defendant had no right to take on the vicarious duty to communicate matter
the
author of the letter may have had a moral duty to convey.
- At
the trial Tindal CJ had found the communication was protected by qualified
privilege and, there being no malice, the defendant
had succeeded. As the Court
was equally divided the rule nisi was dropped and the defendant's verdict stood.
- Coltman
J was the trial judge in Bennett v Deacon [1846] EngR 631; (1846) 2 CB 628, 135 ER 1093
where the defendant told a trader not to give credit to the plaintiff for the
price of some timber. The statement was volunteered.
Coltman J ruled [1846] EngR 631; (2 CB 628
(at 631); 145 ER 1093 (at 1095)), that "although the communication might have
been privileged if bon fide made in answer to inquiries addressed to the
defendant as to the credit and circumstances of the plaintiff, yet, inasmuch as
he had volunteered the information, the case did
not fall within the general
rule." On a motion for a new trial heard by the same bench as had heard
Coxhead v Richards , the judges maintained the position they had held in
that case so the plaintiff retained his verdict.
- In
Davies v Snead (1870) LR 5 QB 608 (at 611), a case which involved no
timing issue, Blackburn J described Tindal CJ and Erle J's opinions as authority
for the proposition
that "where a person is so situated that it becomes right in
the interests of society that he should tell to a third person certain
facts,
then if he bon fide and without malice does tell them it is a privileged
communication." McHugh J referred to Davies v Snead as supporting his
attribution of principle concerning "imminent injury" to Coxhead v Richards
: Bashford (at [75]). It is not apparent to me that Blackburn J was
passing any comment on the relevance of timing.
- As
is apparent from the following discussion, subsequent authorities have explained
Blackburn J's statement that "it becomes right
in the interests of society" as
synonymous with there having been a duty on the defendant in Coxhead v
Richards to make the communications in question.
- In
Watt v Longsdon (at 145) Scrutton LJ described Coxhead v Richards
as:
"[a] conspicuous instance of the difficulties which arise
when judges have to determine the existence of duties, not legal, but moral
or
social, by the inner light of their own conscience and judgment and knowledge of
the world."
- Scrutton
LJ (at 145) understood Tindal CJ to have considered the defendant's protection
to arise from " 'various social duties by
which men are bound to each other,'
and that it was the duty of the defendant to communicate this information to the
owner", a duty
his Lordship (at 146) described as of a "moral" nature; see also
(at 152) per Greer LJ: London Association for Protection of Trade v
Greenlands Limited (at 35) per Lord Atkinson.
The reception of Coxhead v Richards
- In
dealing with classes of occasions of qualified privilege Spencer Bower expressed
the view that cases in which a communication was
held not to attract a defence
of qualified privilege because it was volunteered could not by 1923 "be regarded
as sound, insofar
as they decide that the new factor voluntariness
negatives all possibility of protection" (emphasis in original): Spencer
Bower, A Code of the Law of Actionable Defamation , 2 nd ed (1923)
Butterworth & Co (at 112 ff).
- Spencer
Bower (at 115) identified as within the class of publications protected by
qualified privilege, being "a general publication"
made "by any person having
... [a] duty or interest." He illustrated that proposition (at footnote (gg)) by
reference to Coxhead v Richards and observed that at the time of writing
it was well established that the view of Tindal CJ and Erle J in Coxhead v
Richards was:
"... the correct one, and that the proper course for the judge to
adopt at the trial where it appears that the communication was not
in answer to
an inquiry, is to leave this fact, together with the other circumstances of the
case (where any of them are disputed),
to consideration of a jury, accompanied
by an adequate direction (as was done by Tindal CJ in the earlier case) or,
where there is
no such dispute, and it becomes, therefore, the duty of the judge
to rule on the question, to take this fact, with all the others,
into account
before so ruling, and not to direct the jury (as Coltman J did in the later
case) that the voluntariness of the communication
ipso facto excludes it
from immunity."
- Spencer
Bower cited Davies v Snead as articulating the proposition for which
Coxhead v Richards stood and referred to subsequent statements approving
and/or applying that proposition. He said (at 116, footnote (gg)), it could
be
accepted as law that, in the language of Jessel MR in Waller v Loch
(1881) 7 QBD 619 (at 621), "it is not necessary in all cases that the
information should be given in answer to an inquiry", adding:
"The question is not whether the communication was volunteered or
not, but whether, having regard to this and all the other circumstances
of a
particular case, it was in accordance with duty, and was made under a sense of
duty ... or fails to satisfy these requirements."
See also Odgers, A Digest of the Law of Libel and Slander , 5 th ed
(1911) Stevens and Sons Limited at 264, referring to Coxhead v Richards
and concluding (at 265) his consideration of the relevance of volunteered
statements absent a pre-existing confidential relationship
by saying:
"But in every case the test would appear to be, Did the defendant act under a
sense of duty, or from any motive of self-interest?
In the former case, whenever
a moral or legal duty exists, he is protected. In the latter he is not. (
Macintosh v Dun... )."
- McHugh
J referred to Jessel MR's statement in Waller v Loch ( Bashford
(at [74])), then added:
"In all cases, however, the fact that the defendant has volunteered
the statement is an important - often decisive - factor in determining
whether
the occasion was privileged."
- The
1 st edition of Gatley, Law and Practice of Libel and Slander , (1924)
Sweet & Maxwell Limited at 213 - 214 accepted that circumstances may exist
which made it A's moral duty to inform B of
facts derogatory of C, even though B
had made no inquiry of A in the matter and opined:
"Volunteered communications were formerly regarded with much less
favour than at the present day; indeed, according to some of the
earlier
decisions, no privilege attached to such communications when made to a stranger.
But later cases have established a more
liberal view. The officiousness of the
defendant in volunteering the communication, though an important element for
consideration
in determining whether the defendant acted under a sense of duty
or from an indirect motive, is not the decisive test in determining
whether the
occasion is privileged."
- The
cases Gatley cites as authority for the earlier view all predate Coxhead v
Richards . The authority Gatley appears to have relied upon to support the
proposition that there was a later more liberal view was Greenlands Ltd v
Wilmshurst & The London Association for Protection of Trade [1913] 3 KB
507 (at 535 - 536) where Hamilton LJ said:
"Though the fact that a communication is volunteered is material on
the question of malice - was the defendant a fussy busybody acting
'ultroneously' or a person discharging a genuine social duty? - it is not
conversely true that the issue of privilege can generally turn on this
circumstance . Privilege must depend on the relations of the parties, on the
duty thereout arising, and on the occasion which is used or abused,
not on the
mere accident who spoke first. When this is critical it is on account of the
nature of the duty, the discharge of which
may or may not be consistent with
volunteering the statement. There is no general rule that statements which
would be privileged if made in answer to an inquiry cease to be so when the
informant
has not waited to be asked. " (emphasis added)
The House of Lords reversed the Court of Appeal's decision in Greenlands
Ltd v Wilmshurst & The London Association for Protection of Trade , but
not in terms which detracted from the force of Hamilton LJ's statement.
- Gatley
concluded his section headed "Statements Volunteered in Pursuance of a Duty" by
echoing Odgers, and stating that the real test
as to whether the occasion was
privileged was "whether, having regard to this and to all other circumstances of
a particular case,
it was a moral or social duty of the defendant to volunteer
the communication": Gatley, Law and Practice of Libel and Slander in a Civil
Action , Sweet & Maxwell Ltd (1924) (at 213 - 214).
- Statements
volunteered in pursuance of a duty received substantially the same treatment in
the 8 th edition of Gatley: P Lewis, Gatley on Libel and Slander , 8 th
ed (1981) Sweet & Maxwell at [480] - [481]. (The 8 th edition of Gatley
dealt with the situation of voluntary communications
between strangers, stating
that in such circumstances it was "often very difficult to determine whether in
the circumstances of a
given case a moral duty was cast on one of them to
volunteer the communication": Gatley 8 th ed at [499]). Coxhead v Richards
is discussed under this heading with a footnote as follows:
"A careful reading of the judgments in Coxhead v Richards (ubi
sup.) , seems to show that Tindal CJ and Erle J had prominently before their
minds the danger which existed to the lives of the crew; while Coltman
and Creswell JJ, not accepting the existence of the urgency of this danger, were
unwilling that the reputation of the plaintiff should be sacrificed to
the property interest of the shipowner. See the argument of Terence
O'Connor KC in Watt v Longsdon [1930] 1 KB 130 at pp 135 - 136: 'Is it
for the common convenience and welfare of society that a shipowner should be
informed of the conduct of his
captain which is endangering the lives of his
crew? The law has answered in the case of Coxhead v Richards that it was.
The question whether it is for the common convenience and welfare of society
that a wife should be informed of her husband's
misconduct is a very different
question ... The answer must depend of the circumstances.' In such case the law
has to weigh and measure
the several interests - life, family, reputation,
property and the rest - that are involved. For the opinion of a leading moralist
on the relative values of these things see, eg Aquinas ST, 2a, 2ae, Q. 73 A. 3:
whether defamation is the greatest wrong a man may
do to his neighbour."
(emphasis in original)
- The
11 th edition of Gatley treats the subject of volunteered statements in
performance of a duty initially in substantially the same
way as the 1 st and 8
th editions: P Milmo and WVH Rogers, Gatley on Libel and Slander , 11 th
ed (2008) Sweet & Maxwell at [14.31]. However after referring to the
"general rule" as set out in the 8 th edition, the
text says "yet ordinarily"
then sets out the second and third sentences of [73] of the McHugh J's judgment
in Bashford as well as the last two sentences of his paragraph [77].
Footnote (211) to those extracts points out that McHugh J's judgment was
a
dissenting one and adds "but it does not appear that the majority would have
disputed the proposition" in paragraph [73]. I do
not understand the basis of
the authors' view in this respect. As will be apparent, the majority did not
consider the issue of "pressing
need", nor emphasise the role of volunteered
statements in the same or even similar terms to McHugh J.
- Nevertheless,
when dealing with the "real test" for qualified privilege, the 11 th edition (in
the text of [14.31]) returns to the
language of the 8 th edition which, by
reference to Watt v Longsdon, describes the defence as being determined
by whether, having regard to all the circumstances of the case, "it was the
moral or social
duty of the defendant to volunteer the communication."
- A
statement of similar import to McHugh J's statement in Bashford (at [73])
does appear in Professor Raymond Brown, The Law of Defamation in Canada ,
2 nd ed (1994) Carswell at 681 - 682 [13.2(5)] as follows:
"The court does not look kindly upon those who officiously meddle
in the affairs of others, unless there is some pressing justification.
However,
its view of the conduct may depend on the relationship between the parties.
Thus, the court is likely to be more solicitous
about someone who is acting at
the specific request of another than about someone who takes it upon himself or
herself to volunteer
information. However, occasionally, even in the latter
instances the court may protect a volunteer, although he gratuitously offers
information to a stranger."
- Professor
Brown attributes the "pressing justification" proposition to Earl J in Byam v
Collins 111 NY 143 (at 151); 19 NE 75 (at 76) (1888). Earl J in turn drew
that proposition from Coltman J's reasons in Coxhead v Richards . As is
apparent, at the time Earl J wrote, it was accepted, at least in the English
texts to which I have referred, that Coltman
J's view had generally been
rejected. Brown attributed the last statement concerning the volunteer to Jessel
MR in Waller v Loch (at 621), and quoted the same passage from that
judgment as McHugh J quoted in Bashford (at [74]).
- Professor
Brown's text deals extensively with authorities in the United States. It is
unnecessary to determine whether a "pressing
justification" test has found roots
in that jurisdiction. Suffice it to say, with respect, that the views McHugh J
expressed in Bashford concerning the decisiveness of voluntariness and
"pressing need" are not supported by the authorities to which he referred or by
decisions
of this Court. Counsel for the respondent did not identify any
decision of the High Court or of a court of comparable jurisdiction
in Australia
where they have been supported. My researches have not identified any such
cases. In my view the views McHugh J expressed
in Bashford on those
propositions do not represent the law of Australia. The issue of qualified
privilege turns on a close examination of all
the circumstances of the
publication.
Conclusion
- In
my view the primary judge erred in concluding the appellant did not establish
the defence of qualified privilege. The appellant
had a tangible interest in his
takeover bid for Souths succeeding. He had recently discovered that it was the
respondent who was
spreading what he regarded as misleading information about
the bid. He formed the belief that the respondent's action was influenced
by a
concern to prevent new blood taking control of Souths and investigation the
circumstances of the payments to his son. It was
in those circumstances that he
wrote the matter complained of. In my view the "great mass of right-minded
[people] in the position
of the [appellant] would have considered" he had an
interest, in the circumstances, to communicate with Mr Ferguson (and the CFMEU)
in the terms he did: Stuart v Bell [1891] 2 QB 341 (at 350) per Lindley
LJ.
- The
primary judge rejected the defence firstly on an application of the views of
McHugh J in Bashford concerning voluntariness and "pressing need": see,
in particular, primary judgment (at [69] - [70]). It was further, and possibly
independently, rejected because Mr Ferguson could not properly investigate the
allegations before the EGM: primary judgment (at [71]).
- For
the reasons I have given, there was error in the first basis for rejection. As
to proper investigation, her Honour, with respect,
does not appear to have
understood the appellant's object was, at least in part, to stop the respondent
spreading the misleading
information. I would disagree with her Honour's
conclusion (at [70]) that there was a "tenuous connection" between the
misleading
and the corruption allegations. The misleading allegation and the
corruption allegations were inextricably linked: that is to say
each was germane
to the occasion, because it was the latter which, in the appellant's mind,
explained the former.
- Nor
had the aspect of the corruption allegations, that is to say that they were
motivating the respondent to spread misleading information
about the bid, a
matter which vitally concerned the appellant, been "dealt with". If the
appellant's concern about the respondent's
motive was correct, there was a live
issue about a matter in which the appellant, as I have said, had a tangible
interest.
- The
appellant's and the CFMEU's interests did not, as her Honour recognised (at
[68]), have to correspond precisely. There had to
be a community of interest:
see Aktas (at [22]). This was, in my view, established by the appellant's
interest in the bid for Souths succeeding and not being thwarted by
a person who
was possibly motivated by a desire to protect misconduct as an employee of the
CFMEU and the CFMEU's interest in knowing
the character of the respondent.
Orders
- I
propose the following orders:
(a) Appeal allowed with costs.
(b) Set aside the orders of McCallum J entered on 4 September 2009.
(c) Verdict and judgment for the appellant.
(d) Respondent to have a certificate under the Suitors' Fund Act 1951
(NSW) if otherwise qualified.
**********
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