Global Sportsman Pty Ltd & anor v Mirror Newspapers Ltd & anor [1984] FCA 167
Federal Court of Australia
Full text
Select any passage to save a personal note with optional tags.
ues
CATCHWORDS
TRADE PRACTICES - misleading or deceptive conduct - whether
publication of statements including statements of opinions made
in ordinary course of publication of news (not being advertising
Material) can constitute misleading or deceptive conduct -
publication of material constituting conduct for purposes of
sub-s. 52(1) of the Trade Practices Act 1974 - publication of
incorrect information constituting misleading or deceptive
conduct only if conduct contains or conveys a misrepresentation
- some articles of news more readily to be taken as statements
by newspaper than others - disadvantages of Stated Case
procedure.
Trade Practices Act 1974, s3. 4(2), B, 52(1), 53(e), 82, 84,
85(3), 87
Federal Court of Australia Act 1976, sub-s. 25(6)
GLOBAL SPORTSMAN PTY LTD and JEFFREY ROBERT THOMSON v.
MIPROR NEWSPAPERS LIMITED and NATIONWIDE NEWS PTY LTD
(QLD G69 OF 1983)
BOWEN C.J. , LOCKHART & FITZGERALD JJ.
BRISBANE
19 JUNE 1984
IN THE FEDERAL COURT OF AUSTRALIA )
QUEENSLAND DISTRICT REGISTRY ) QLD G69 of 1983
GENERAL DIVISION )
BETWEEN :
GLOBAL SPORTSMAN PTY LTD and
JEFFREY RORERT THOMSON
Applicants
AND:
MIRROR NEWSPAPERS LIMITED and
NATIONWIDE NEWS PTY LTD
kespondents
ORDER
JUDGES MAKING ORDER: BOWEN C.J., LOCKHART &
FITZGERALD Jd.
DATE OF ORDER: 19 JUNE 1984
WHERE MADE: BRISBANE
THE COURT ORDERS THAT:
1.
Question
(1) Is a purchaser or a reader of a newspaper
a "consumer" within the meaning of the
Act in relation to those parts of a
newspaper which are not advertising
material?
Answer
Unnecessary to answer.
Question
(11) Can the publication of statements
including statements of opinion made in
the ordinary course of the publication of
news in those parts of a newspaper which
are not advertising material constitute
conduct which is misleading or deceptive
or likely to mislead or deceive within
the meaning of s.52 of the Act?
Answer
Yes
uestion
(1ii) (a) Is the injury of which the second
applicant complains loss or damage within
the meaning of s.82 of the Act?
(b) If the first applicant suffered the
loss or damage of which 1t complains in
the circumstances which the applicants
allege was that loss or damage suffered
by the first applicant "by" conduct of
the respondents or either of them within
the meaning of s.82 of the Act?
Ansver
(a) Yes
(b) Yes, if the matters in paragraphs 3 and
13 of the Case are established.
Question
(iv)
If the facts in paragraphs 2-12 and the
applicants' allegations in paragraphs 13
and 15(a) are established:
(a) have the applicants or either and if
so which of them made out a claim under
the Act?
(b) if "No" to (iv)(a), will the
applicants or either of them and if so
which of them establish a claim under the
Act by proof of all or some and if so
which of the allegations in paragraphs 16
and 17;
(c) aif "Yes" to (iv)(a) or tiv) (b), can
the respondents establish a defence toa
the claim under the Act of the applicants
or either and if so which of them, and,
if so, what defence?
Answer
(a) Not answered
(b) Not answered
(c) Not answered
Question
(v) If the facts in paragraphs 2-12 and the
applicants' allegations in paragraphs 13
and 15(b) are established:
(a) have the applicants or either ard if
so which of them made out a claim under
the Act?
id) if "No" to (v)(a), will the
applicants or either of them and if so
which of them establish a claim under the
Act by proof of all or some and if so
which of the allegations in paragraphs 16
and 17?
(c) 1f "Yes" to (v)(a) or (v)¢b), can
the respondents establish a defence to
the claim under the Act of the applicants
or either and if so which of tnem, and,
if so, what defence?
Answer
(a) Not answered
(b} Not answered
(c)
Not answered
Question
(vi) If the facts 1n paragraphs 2-12 and the
applicants' allegations in paragraphs 13
and 15(c) are established:
(a) have the applicants or either and if
so Which of them made out a claim under
the Act?
(b) if "No" to (vi)(a), will the
applicants or either of them and if so
which of them establish a claim under the
Act by proof of all or some and if so
which of the allegations in paragraphs 16
and 17;
(c) af "Yes" to (vid(a) or (vi)(b), can
the respondents establish a defence to
the claim under the Act of the applicants
or either and if so which of them, and,
if so, what defence?
Answer
(a) Not answered
(bd) Not answered
(c) Not answorea
2, As agreed and recorded in che Case
Stated, the Responaents must pay to the
applicants their taxed costs of and
incidental to the proceedings in relation
to the Case Stated.
IN THE FEDERAL COURT OF AUSTRALIA )
QUEENSLAND DISTRICT REGISTRY ) QLD Goo of 1983
GENERAL DIVISION )
BETWEEN :
GLOBAL SPORTSMAN PTY LTD ana
JEFFREY ROBERT THOMSON
Applicants
AND:
MIRROR NEWSPAPERS LIMITED and
NATIONWIDE NEWS PTY LTD
Respondents
CORAM: BOWEN C.J., LOCKHART & FITZGERALD JJ.
DATE: 19 JUNE 1984
REASONS FOR JUDGMENT
THE COURT: This is a special case stated pursuant to sub-s.
25(6) of The Federal Court of Australia Act 1976.
The applicants claim damages from the respondents for
alleged contraventions of the Trade Practices Act 1974 ("the
Act"). The second applicant also claims damages for alleged
defamation.
Ww
*
The second applicant is a professional cricketer. On 9
February 1978 the first and second aprlicants entered into an
agreement under which, in return fcr payments from the first
applicant, the second applicant agreed to perform various
activities associated with the expio1itation of his sporting
reputation. Neither respondent had any knowledge of the
existence of the first applicant or of the agreement between the
applicants at any material time.
Each of the respondents is a trading corporation within
the meaning of the Act. The first respondent prints, publishes,
and sells newspapers including "The Australian" and "The Weekend
Australian" on behalf of the second respondent. Each of "The
Australian" and "The Weekend Australian" 1s published throughout
Australia.
On 16-17 July 1983 an article puplished in "The Weekend
Australian" at p.16 in the "Focus on Crort" section was headed
"Mutinous Elements threaten tc destroy Australian cricket" "A
team divided - gallows await yesterday'= heroes" and included a
cartoon caricature of tne Australian Cricket team captain, Kim
Hughes, playing cricket with a large knife through his back and
also a photograph cf the second applicant. A further article
"Factions are not cricket" was published in the editorial section
of "The Australian" newspaper on 18 July 1983. Each of the
articles was written by a journalist employed by the first
respondent as a specialist writer on cricket. Only the former
article identified the journalist as its author.
3.
The decision to publish "he first article was made by an
editor of "The Weekend Australian" employed as such by the first
respondent and his decision was made in the ordinary course of
his employment. The decision to publish the second article was
made by an editor of "The Australian" employed as such by the
first respondent and his decision was made in the ordinary course
of his employment. Neither editor had any knowledge concerning
any of the matters stated in the respective articles and each
relied entirely upon the author of the article. No other officer
or employee of either respondent had any knowledge concerning the
contents of either article prior to publication.
The facts summarized above are taken from paragraphs
2-12 of the Special Case which also records a number of
allegations by the applicants in the foilowing numbered
paragraphs:
"13, The applicants allege that each of the
articles injured the secona applicant
in his credit, character and
yeputation, brought him into public
scandal and contempt, occasioned him
embarrassment and hurt and impaired his
prospects of selection and employment
as a professional cricketer and asa
'medium for the advertising of goods
and services', and that in consequence
each of the articles caused the first
applicant to lose business
14. The applicants allege that each article
was not only defamatory of the second
applicant but was misleading and
deceptive within the meaning of s.52 of
the Act;
15.
17.
The applicants allege that each of the
articles:
(a) made or repeated inaccurate
statements of fact concerning the
conduct, character and reputation of
the second applicant, including
inaccurate statements as to opinions
held, statements made, and acts done by
the second applicant and others;
(bd) made or repeated statements of
opinions of the author of tne articles
or of the respondents (or one or other
of them) or of some other person (not
being one of the applicants) concerning
the conduct, character and reputation
of the second applicant for which
Opinions there was no sufficient basis;
(c) made or repeated statements
including statements as to opinions
held, statements made and acts done by
the second applicants and others,
which, in the circumstances, had and
conveyed expressly or by innuendo false
meanings concerning the conduct,
character and reputation of the second
applicant.
The applicants allege that the author
of the articles:
(a) did not believe in the accuracy of
the statements of facts made therein;
(b) did not hold the opinions stated
therein as his opinions or opinions of
the respondents (or either of them),
and did not believe that the opinions
of other persons (not being one of the
applicants) stated therein were
reasonably and honestly held by such
persons;
(c) did not believe in the truth of the
meaning conveyed by the articles.
The applicants further allege that no
basis existed for belief by the author
of the articles in the accuracy of the
5.
facts stated therein or in the truth of
the meanings conveyed, or for the
opinions of the author or of the
respondents (or either of them) or of
other persons, not being one of the
applicants, which are stated in the
articles,
The respondents' primary contention is that neither
applicant has a claim for damages under s.8@2 of the Act because
the publication of statements, including statements of opinion,
made in the ordinary course of the publication of news cannot be
conduct which is misleading or deceptive or likely to mislead or
deceive within the meaning of s.52 of the Act. Further questions
were raised concerning which of their allegations must be proven
by the applicants to establish their claims if the respondents'
primary contention is not correct, and what, if any, defences
might be available to the respondents.
At the request of the parties the following questions
were reserved for the consideration of the Full Court:
(1) Is a purchaser or a reader of a
newspaper a "consumer" within the
meaning of the Act in relation to those
parts of a newspaper which are not
advertising material?
(1i) Can the publication of statements
including statements of opinion made
in the ordinary course of the
publication of news in those parts of a
newspaper which are not advertising
material constitute conduct which is
misleading or deceptive or likely to
mislead or deceive within the meaning
of s.52 of the Act?
(iii)
(1v)
(v)
(a) Is the injury of which the second
applicant complains loss or damage
within the meaning of s.82 of the Act?
(b) If the first applicant suffered
the loss or damage of which it
complains in the circumstances which
the applicants allege was that loss or
damage suffered by the first applicant
"by" conduct of the respondents or
either of them within the meaning of
8.82 of the Act?
If the facts in paragraphs 2-12 and the
applicants' allegations in paragraphs
13 and 15(a) are estabiished:
(a) have the applicants or either and
1f so which cf them made out a claim
under the Act?
(b) if "No" to (ivi(a), will the
applicants or either of them and if so
which of them establish a claim under
the Act by proof of all or some and if
so which of the allegations in
paragraphs 16 and 17;
(c) if "Yes" to (iv)(a) or (iv)(b),
can the respondents establish a defence
to the claim under the Act of the
applicants or either and if so which of
them, and, if so, what defence?
If the facts 1n paragraphs 2-12 and the
applicants' allegations in paragraphs
13 and 15(b) are established:
(a) have the applicants or either and
if so which of them made out a claim
under the Act?
(b) 1f "No' to (v)ia), will the
applicants or either of them and if so
Which of them establish a claim under
the Act by proof of all or some and if
30 which of the allegations in
paragraphs 16 and 17?
(c) af "Yes" to (v)(a) or (v)(b), can
the respondents establish a defence to
the claim under the Act of the
applicants or either and if 30 which of
them, and, if s0, what defence?
(vi) If the facts in paragraphs 2-12 and the
applicants' allegations in paragraphs
13 and 15(c) are established:
(a) have the applicants or either and
if so which of them made out a claim
under the Act?
(b) 1f "No" to {(v1)(ad, will the
applicants or either of them and if so
which of them establish a claim under
the Act by proof of all or some and if
so which of the allegations in
paragraphs 16 and 17;
(c) if "Yes" to (vi)(a) or (vi)d(b),
can the respondents establish a defence
to the claim under the Act of the
applicants or either and if so which of
them, and, if so, what defence?
It was common ground before this Court that it was
unnecessary to answer question (i). The respondents acknowledged
that question (1ii) should be answered:
(iil) (a) Yes
(b) Yes, if the matters in paragraphs 3
and 13 of the Case are established.
The respondents also acknowledged that, if questions (iv)(c),
(v)(c) and (vi)(c) are answered, they should be answered in the
negative.
There ig no definable boundary between conduct which is
misleading or deceptive or likely to mislead or deceive and
material which 1s defamatory. Material which 1s defamatory does
not fall outside the operation of sub-s. 52(1) of the Act merely
for that reason any more than it is brought within the operation
of sub-s. 52(1) by reason only that 1t 1s defamatory. If the
operation of sub-s. 52(1) was limited to exclude material because
it was defamatory, not only newspaper publishers, but all
corporations would be exonerated. Such a proposition would
severely restrict the broad generality of sub-s. 52(1) which has
been emphasised by the High Court on more than one occasion: see
Hornsby Building Information Centre Pty Ltd v. Sydney Building
Information Centre Pty Ltd (1978) 140 C.L.R. 216; Parkdale
Custom Built Furniture Pty Ltd v. Puxu Pty Ltd (1982) 56 A.L.J.R.
715; 42 A.L.R. 1.
Further, the meaning of sub-s. 52(1) cannot be
controlled by the doctrine of freedom of Speech, which
incorporates the freedom of the press. Although there is no
right to speak freely given by the Constitution or by statute,
free speech is of fundamental importance. But in this ag in
other areas, freedom does not mean licence but freedom under law
in a civilized society: cf. Samuels v. The Readers' Digest
Association Pty Ltd (1969) 120 C.L.R. 1, per Barwick C.J. at
pp.14 and 15, Speech is free if it is free from unwarranted
restrictions. Freedom of speech is but one of a number of
competing rights and interests which must be accommodated. Part
V of the Act is broadly concerned with "Consumer Protection",
which is itself an important matter of public interest. Like
sedition, defamation, obscenity, copyright, etc., consumer
protection can justify some restriction upon what may be
published. The ambit of any restriction ig a matter for
Parliament to the extent that the subject is within its
constitutional power. Not all newspapers are published by
corporations but many are, and it 1s with respect to those that
the questions stated are of immediate significance. The validity
of the Act for present purposes is not in doubt.
The respondents' primary argument to the effect that
sub-s. 52(1) does not apply to the publication of "news" ina
newspaper was met by an equally wide argument for the applicants
that a corporation contravenes sub-s. 52(1) if it publishes a
newspaper which contains any "news" which 1s incorrect. It was
contended that a reader will be or is likely to be misinformed if
the publisher publishes a statement of fact which is inaccurate
or an opinion which 15 aincorrect and that such conduct 15
suffictent to constitute a contravention of the sub-section.
According to the applicants, such a conclusion is unrelated to
whether any act or omission occurs or is likely to occur asa
result of the publication; such considerations are material not
to the existence of the contraventian but to the grant of relief
(see ss. 8, 82 and B7 of the Act}.
The latcer part of the applicants' submission seems to
us correct. A contravention of sub-s. 52(1) is established by
conduct which is misleading or deceptive or which is likely to
mislead or deceive. Conduct is likely to mislead or deceive if
that is a "real or not remote chance or possibility regardless of
whether it is less or more than fifty per cent": cf. Tillmanns
10.
Butcheries Pty Ltd v. Australasian Meat Industry Employees' Union
(1979) 42 F.L.R. 331, per Deane J. at p.346; Sheen v. Fields Pty
Ltd £19843 58 A.L.J.R. 93. Evidence that an erroneous conclusicn
has been formed by yreferenc? to conduct is admissible to
establish that the conduct was misleading or deceptive or likely
to mislead or deceive; such evidence may be persuasive but it is
not essential. Evidence of acts or omissions resulting from the
erroneous belief may also be admissible but again 1s not
essential. Sub-section 52(1) is concerned with the effect or
likely effect of conduct upon the minds of those by reference to
whom the question of whether the conduct is or is likely to be
misleading or deceptive falls to be tested. The test 1s
objective and the Court must determine the question for itself:
Taco Company of Australia Inc v. Tacc Bell Pty Ltd (1982) 42
A.L.R. 177, at p.202.
Each of the rival contentions otherwise focussed upon
the publication by a corporation of information described as
"news". A cause of action in defamation founds upon the
puolication or communication of defamaztciry material and detailed
rules have been evolved to deal with the Liability in defamation
of those who publish or republish such material or cause 1ts
publication. No comparable provisions are found in the Act.
Sub-section 52(1) simply proscribes "conduct" which is misleading
or deceptive or likely to mislead or deceive. Sub-section 4(2)
provides what constitutes "conduct". While information may be
misleading or deceptive or likely to mislead or deceive, it is
only conduct which is misleading or deceptive or likely to
mislead or deceive which attracts the operation of sub-s. 52(1).
ll.
Whether and in what circumstances the mere communication of
information is or may be sufficient to contravene that
sub-section is a question to which it will be necessary to
return. However, 216 1s not in doupt that a corporation
contravenes sub-s. 52(1) if 1t makes a statement which 15s
misleading or deceptive or likely to mislead or dece1rve: see,
for example, Bill Acceptance Corporation Ltd v. G.W.A. Limited
(1983) 50 A.L.R. 242. It 18 convenient to proceed initially by
reference to that proposition. its practical application has
been revealed by a number of decisions of the High Court and this
Court.
If a corporation is alleged to have contravened sub-s.
52{1) by making a statement of
'D
ast or present fact, the
corporation's state of mind is immater:al unless the statement
involved the state of the corporation s mind. Whether or not
sub-s. 52(1) 1s contravened does not depend upon the
corporation's intention or its belief concerning the accuracy of
such statement, but upon whether the statement in fact contains
or conveys a meaning which is false; that 1s to say whether the
statement contains or conveys a misrepresentation. Most
commonly, such a statement will contain or convey a false meaning
if what is stated concerning the past or present fact is not
accurate; but a statement which is ilterally true may contain or
convey a meaning which is false.
12.
Many statements, for example, promises, predictions and
opinions, do involve the state of mind of the maker of the
statement at the time when the statement is made. Precisely the
same principles control the operation of sub-s. 52(1) with
regpect to the making of such statements. A statement which
involves the state of mind of the maker ordinarily conveys the
Meaning (expressly or by implication' that the maker of the
statement had a particular state of mind when the statement was
made and, commonly at least, that there was basis for that state
of mind. If the meaning contained in or conveyed by the
statement is false in that or in any other respect, the making of
the statement will have contravened sub-s. 52(1) of the Act.
Compare Lyons v. Kern Konstructions (Townsville) Pty Ltd (1983)
47 A.L.R. 114.
The non-fulfilment of a promise when the time for
performance arrives does not of itself establish that the
promisor did not intend to perform it when it was made or that
the promisor's intention lacked any, or any adequate, foundation.
Similarly, that a prediction proves inaccurate does not of itself
establish that the maker of the prediction did not believe that
it would eventuate or chat the belief lacked any, or any
adequate, foundation. Likewise, the incorrectness of an opinion
(assuming that can be established) does not of itself establish
that the opinion was not held by the person who expressed it or
that it lacked any, or any adequate, foundation.
13.
The applicants argued that, nevertheless, the statement
of an incorrect opinion is misleading or deceptive or likely to
mislead or deceive merely because it misinforms or is likely to
misinform. An expression of opinion which is identifiable as
such conveys no more than that the opinion expressed is held and
perhaps that there is basis for the opinion. At least if those
conditions are met, an expression of opinion, however erroneous,
misrepresents nothing.
To this point, attention has been concentrated upon the
making of statements, whether of fact or opinion. Whether a
statement is a statement of past or present fact, a promise, a
prediction, or an expression of opinion, the making of it
constitutes conduct which is misleading or deceptive or likely to
mislead or deceive if the statemert contains or conveys a
misrepresentation. As we said earlier, the arguments for each
side were related to the publication of information as "news".
There has been little prior consideration by the Courts to
publication of material as constituting conduct for the purposes
of sub-s. 52(1) of the Act.
In Universal Telecasters (Qid) Gtd v. Guthrie (1978) 32
F.L.R. 360, the proprietor of a television station was prosecuted
for an alleged contravention of para. 53(e) of the Act in
connection with a broadcast of an advertisement containing false
or misleading statements concerning the existence of a price
reduction. The corporation was convicted but the conviction was
quashed by a majority on appeal. Special leave to appeal to the
High Court was refused. All three members of the Full Court
14.
(Bowen C.J., Nimmo and Frank: JJ.) were of opinion that, by
broadcasting the advertisement, the corporation had made the
statements concerning the existence of the price reduction which
was contained in the advertisement, although since the
corporation succeeded, the opinions of the two judges who
comprised the majority (Bowen C.J. and Franki J.) were cbiter.
Nimmo J. expressed the view at p.368 that "the making
and publishing of the statements in this case were
contemporaneous and mutually inclusive". His Honour did not
expand upon the process of reasoning by which he arrived at that
conclusion other than to say that he considered that it wag
supported by sub-s. 85(3) of the Act which provides a defence to
a corporation Which is an "innocent" publisher. Reference was
alsc made by the other members of She Court to sub-s. 85(3).
Franki J. said at p.377:
"Although the phrase 'make false or misleading
statements' rather suggests that there may
very well be a difference between making a
statement and publishing the statement of
somebody else, I have come to the conclusion
that, in general, where a telévision station
telecasts an advertisement that contains
certain spoken words, it is proper to hold
that the television station has made a
statement. Section 65(3) of the Act also
points in the same direction."
Bowen C.J. dealt with the relationship between
publication and the making of a statement at some length. He did
not rely upon sub-s. 85(3) for his conclusion that the television
station proprietor had made the false or misleading statements in
the advertisement. His Honour said at p.363:
15.
"Counsel for Universal Telecasters sought to
obtain some support for his argument upon the
interpretation of 'make' in s.53(e) by
reference to the use of the word 'publish' in
s.85(3). I do not consider that the use of
the word 'publish' in s.85(3) requires s.53(e)
to be construed in the manner suggested. It
may be noted that s.85(3) provides a defence
which is available in respect of the offences
provided for in other paragraphs of 35.53,
besides s.53(e)."
Of course, no present question arises of what 1s meant by the
word "make". Its present use arises not as part of a statute but
in the discussion of wna effect and apsiication of a stacutory
provision expressed in different language. Further, importantly
for present purposes, Bowen C.J. made ic clear that whether the
publication of an advertisement containing false or misleading
statements constituted the making of those false or misleading
statements could only be decided by reference to all of the facts
of a particular case, including the content of the advertisement.
One of the disadvantages of the Stated Case procedure in
this matter is that questions which tne parties anticipate may
arise must be considered in the abstract.
However, if such difficulties be put to cone side, it is
possible to conclude that the pubiication of incorrect
information may constitute conduct wnich is misleading or
deceptive or likely to mislead or deceive within the meaning of
sub-s. 52(1) of the Act; but will only do so if the conduct
contains or conveys a misrepresentaticn. Obviously, in the
determination of that question, the meaning of the words
16.
published will be of considerable importance. It is important to
emphasise that the meaning 1s to be determined by reference to
what is published by the corporation, and that the ultimate task
is to determine whether its conduct in publishing the words 15
misleading or deceptive or likely to mislead or deceive. "There
can be little doubt that the nature and quality of the
publication may vary, dependent upon whether it 1s a report of
what another has said and whether 1t 13 adopted, repudiated or
discounted.":; Wake v. John Fairfax and Sons Ltd (1973) 1
N.S.W.L.R. 43 at p.49 (C.A.). In the same case it was said at
p.50:
"When a defamatory publication furports to
repeat or report the defamatory statement of
another 1¢ is an essentiaily different libel
from one where the game imomutation 2s conveyed
directly."
A similar observation is applicable to the publication of the
inaccurate statement of another. Such a statement is essentially
different in the meaning which 1t contains or conveys unless it
is adopted by the publisher and he will not necessarily do this
by merely publishing the statement.
Once it is recognised that it is the conduct of a
corporation which must be misleading oc deceptive or likely to
mislead or deceive to attract the operation of sub-s. 52(1), the
principal difficulty which exists concerns the proper approach to
the interpretation of the conduct which is impugned. Similar
problems have been encountered in determining the meaning of
material which is alleged to be defamatory. In defamation
17.
proceedings, a wide approach has sometimes been adopted to the
meanings which may be attributed to a statement by those to whom
it is published. See, for example, Lewis v. Daily Telegraph Ltd
£19633 19.B. 340; affd €1964) A.C. 234; Morgan v. Odhams Press
Ltd £19713 1 W.L.R. 1239; Steele v. Mirror Newspapers Ltd £19741
2 N.95.W.L.R. 348. In Mivror Newspapers Ltd v. Harrison £1982] 56
A.L.J.R. 808 the leading judgment was delivered by Mason J. It
is convenient to quote two passages from p.812. At 2nd column,
letter C, His Honour said:
",.. It is necessary to repeat the remarks of
Holroyd Pearce L.J. in Lewis which preceded
the sentence which I have already quoted from
his judgment:
'When persons publish words that are
imprecise, ambiguous, loose, fanciful or
unusual, there 1s room for a wide
variation of reasonable opinion on what
the words mean or connote. The publisher
can hardly complain un such a case if he
is reasonably understood as having said
somethirg that he did not mean. But when
words with a precise and well-known
meaning are used without the addition of
any expressions which covld impart some
other flavour to them, 16 15 not fair to
twist them from their rormal sense.'
(p.374)"
However, as his Honour had earlier pointed out at 1st column,
letter A:
"...A distinction needs to be drawn between
the yeader's understanding of what the
newspaper 13 saying and judgments or
conclusions which he may reach as a result of
his own beliefs and prejudices. It is one
thing to say that a statement 1s capable of
bearing an amputation defamatory of the
plaintiff because the ordinary reasonable
18.
reader would understand it in that sense,
drawing on his own knowledge and experience of
human affairs in order to reach that result.
It is quite another thing to say that a
statement is capable of bearing such an
imputation merely because it excites in some
readers a belief or prejudice from which they
proceed to arrive at a conciusion unfavourable
to the plaintiff. The defamatory quality of
the published material is to be determined by
the first, not by the second, proposition.
Its importance for present purposes is that it
focuses attention on what 15 conveyed by the
published material in the mina of the ordinary
reasonable reader."
In Taco and Puxu, supra, it was similarly emphasised
that there 13 no contravention of sub-s. 52(1) of the Act unless
error or misconception results from conduct of the corporaticn,
and not other circumstances for which the corporation is not
responsible. One such circumstance may in some cases be a lack
of care or vigilance in all the circumstances by those said to
have been o¢ to be likely to be misled or deceived: see Puxu,
supra, per Gibbs C.J. at p.6 and per Mason J. at p.15. However,
the character of the corporation's conduct is not tested by
reference to its effect or likely effect only on the reasonable
man, but by reference to the entire class of "possible victims":
Puxu. supra, ibid and per Murphy J. at p.19; Taco, supra, at
p.202.
It follows from what has oveen said that question (ii)
must be answered in the affirmative.
In our view none of the remaining questions should be
answered. In the first place, all such questions involved the
applicants' alleged loss and damage as presently claimed which
the respondents elected not to make the subject of argument
19.
before this Court, in consequence of which we were not addressed
on the topic by the applicants. Secondly, central to all those
questions are relationships between the respondents, and hetween
the first respondent and the journalist who wrote the articles
and the editors who decided tc publish tnem. Inevitably, details
of those relationships were not explained by reason of the Case
Stated procedure which the parties adopted. There is obvious
scope in these areas for factual controversies. For example,
while the state of mind of a corporation is in law the state of
mind of those who control the corporation (Commissioner of
Taxation (Commonwealth) v. Whitfords Beach Pty Ltd £1982] 56
A.L.0.R. 240) that prirciple may be of little assistance here
when the facts are ultimately found.
In practice opinions may be published by a newspaper
which are not in fact the opinions of those who control the
newspaper, but are the opinions of employees and others. The
lastmentioned opinions may nevertheless be presented as the
newspaper's opinions. Further, s.84 of the Act can only operate
by reference to the facts of a particular case. Any answer which
the Court may give to the questions now under consideration may
1mpinge upon the future conduct of this proceeding in a manner
which might cause 1t to miscarry.
As ig recognized in general terms by paragraph 15 of
the Case Stated, the contents of a newspaper suchas "The
Australian" or "The Weekend Australian" cover an extremely broad
range, with wide variations both in form and subject matter. Law
lists, weather forecasts, stock exchange reports, reviews,
20.
articles on specialised subjects by identified experts,
photographs, cartoons, etc. all accompany what might be more
narrowly considered "news", which commonly relates both to local
and foreign events. Some articles woulda more readily be taken as
statements by the newspaper than others. For example, an item of
local news, such as a statement that a local company had failed,
particularly if unaccompanied by a by-line, might often fit
readily into that category. On the other hand, foreign news such
as a report of the commencement of a war in another part of the
world might, of its very nature, often suggest that the newspaper
was doing no more than retailing information which had been
supplied to it. It is impossible to generalize and futile and
dangerous to attempt to do so.
The basic dispute between the parties concerne the
respondents' contention that the publication cf statements
including statements of opinion made in the ordinary course of
the publication of news in those parts of 4 newspaper which are
not advertising material cannot be conduct which is misleading or
deceptive or likely to mislead or deceive within the meaning of
sub-s. 52(1) of the Act. For the reasons which we have stated,
we are of opinion that the respondents' assertion is incorrect.
Beyond that, as has previously been emphasised, for example, in
Taco, supra, at p.199:
"The question whether varticular conduct of
which complaint is made is misleading or
deceptive or likely to mislead or deceive is,
in the ordinary case, a question of fact to be
answered in the context of the evidence ag to
the alleged conduct andas to the relevant
surrounding facts and circumstances."
21.
See also Puxu, supra, per Gibbs C.J. at p.7
In the result, question (ii) shculd be answered "Yes";
question (iii)(a) should be answered "Yes"; and question
(ii1)(b) should be answered "Yes, 1 the matters in paragraphs 3
and 13 of the Case are established". No other questions should
be answered.
As agreed and recorded in the Case Stated, the
respondents must pay to the applicants tneir taxed costs of and
incidental to the proceedings in relation to the Case Stated.
be. "dy 56)