Liu v The Age Company Limited [2016] NSWCA 115

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Liu v The Age Company Limited [2016] NSWCA 115 Hearing dates: 4 and 5 February 2016 Date of orders: 20 May 2016 Decision date: 20 May 2016 Before: Beazley P at [1], McColl JA at [17], Ward JA at [283] Decision: (1) Grant the appellant leave to appeal. (2) Direct the appellant to file the notice of appeal in the form of the draft in the White Book within fourteen (14) days. (3) Appeal allowed in part with costs. (4) Set aside the stay order made on 23 March 2015 and continued on 22 May 2015. (5) Grant the cross-appellants leave to appeal. (6) Cross-appellants to file the notice of cross-appeal in the form of the draft in the White Book within fourteen (14) days. (7) Dismiss the cross-appeal with costs. Catchwords: PRACTICE – preliminary discovery – intended defamation proceedings against newspaper defendant and its sources of information – contested hearing of preliminary discovery application – order made compelling identification of newspaper defendants' sources – where judgment making order subject of unsuccessful appeal and unsuccessful High Court special leave application at newspaper defendant's behest – where following failed appellate steps newspaper defendant sought stay of preliminary discovery order – newspaper defendant undertook as condition of stay not to rely on defences of qualified privilege – where newspaper defendant conceded undertaking could have been given at first hearing – no explanation for failure to give undertaking either outright or conditionally at that hearing – stay granted following second contested hearing – whether error in granting stay PRACTICE – preliminary discovery – interlocutory orders – application to stay preliminary discovery order following trial, appeal to Court of Appeal and unsuccessful special leave application – stay application led to second contested hearing – whether stay application should have been entertained – Civil Procedure Act 2005 (NSW), ss 56 - 60 DEFAMATION – preliminary discovery – newspaper rule – whether "effective remedy" once newspaper defendant undertook not to rely on defences of qualified privilege – interests of justice COSTS – preliminary discovery – application for preliminary discovery order conducted by newspaper defendant in adversarial manner – whether primary judge's exercise of costs discretion miscarried – whether exception to costs follow the event rule for newspaper defendant resisting discovery of sources' identity – Civil Procedure Act 2005 (NSW), s 98 – Uniform Civil Procedure Rules 2005 (NSW), 42.1 COSTS – costs of preliminary discovery hearing – whether primary judge should have awarded applicant costs on indemnity basis – whether newspaper defendant's conduct "plainly unreasonable" WORDS AND PHRASES – "effective remedy" – "necessary in interests of justice" Legislation Cited: Civil Procedure Act 2005 (NSW) Civil Procedure Rules 1998 (UK) Competition and Consumer Act 2010 (Cth), Australian Consumer Law Court Procedure Rules 2006 (ACT) Defamation Act 1974 (NSW) Defamation Act 2005 (NSW) Evidence Act 1995 (NSW) Limitation of Actions Act 1958 (Vic) Motor Accidents Act 1988 (NSW) Supreme Court Act 1970 (NSW) Uniform Civil Procedure Rules 2005 (NSW) Cases Cited: Adam v Ward [1917] AC 309 Adam P Brown Male Fashions Pty Ltd v Philip Morris Inc [1981] HCA 39; (1981) 148 CLR 170 Airservices Australia v Transfield Pty Ltd [1999] FCA 886; (1999) 92 FCR 200 Aid/Watch Inc v Federal Commissioner of Taxation [2010] HCA 42; (2010) 241 CLR 539 Airways Corporation of New Zealand v The Present Partners of Pricewaterhouse Coopers Legal [2002] NSWSC 521 Amalgamated Television Services v Marsden [1999] NSWCA 313 Aon Risk Services Australia Limited v Australian National University [2009] HCA 27; (2009) 239 CLR 175 Application of Eduardo Murphy Cojuangco (No 2) (Supreme Court (NSW), Hunt J, 6 January 1989, unrep); LexisNexis BC8902633 Australian Beverage Distributors Pty Ltd v Evans & Tate Premium Wines Pty Ltd [2007] NSWCA 57; (2007) 69 NSWLR 374 Australian Broadcasting Corporation v Lenah Game Meats Pty Ltd [2001] HCA 63; (2001) 208 CLR 199 Bajramovic v Calubaquib [2015] NSWCA 139 Batistatos v Roads and Traffic Authority of New South Wales; Batistatos v Newcastle City Council [2006] HCA 27; (2006) 226 CLR 256 Be Financial Pty Ltd v Das [2012] NSWCA 164 Boland v Dillon; Cush v Dillon [2015] NSWCA 183 Brimaud v Honeysett Instant Print Pty Ltd (1988) 217 ALR 44 British Steel Corporation v Granada Television Ltd [1981] AC 1096 C7 Pty Ltd v Foxtel Management Pty Ltd [2001] FCA 1864 Carr v Finance Corporation of Australia Ltd (No 1) [1981] HCA 20; (1981) 147 CLR 246 Chanel Ltd v F W Woolworth & Co Ltd [1981] 1 All ER 745; [1981] 1 WLR 485 Cojuangco v John Fairfax & Sons Ltd (No 2) (1990) A Def R 51-005; (1991) Aust Torts Reports ¶81-068 Cooper v Williams [1963] 2 QB 567 DA Christie Pty Ltd v Baker [1996] 2 VR 582 Dallas Buyers Club LLC v iiNet Limited (No 3) [2015] FCA 422; (2015) 327 ALR 695 Expense Reduction Analysts Group Pty Ltd v Armstrong Strategic Management and Marketing Pty Ltd [2013] HCA 46; (2013) 250 CLR 303 Fletcher v Besser [2010] NSWCA 30 Ghosh v NineMSN Pty Ltd [2015] NSWCA 334 Government Insurance Office (NSW) v Glasscock (1991) 13 MVR 521 Hall v Nominal Defendant [1966] HCA 36; (1966) 117 CLR 423 Henderson v Henderson (1843) 3 Hare 100; 67 ER 313 Hodder v Queensland Newspapers Pty Ltd [1994] 1 Qd R 49 Hornsby Shire Council v Valuer General of NSW [2008] NSWSC 1281 House v R [1936] HCA 40; (1936) 55 CLR 499 Hunter v Commonwealth Trading Bank of Australia (Supreme Court, unreported, 12 June 1988) Hutchinson v Nominal Defendant [1972] 1 NSWLR 443 Jago v District Court of New South Wales [1989] HCA 46; (1989) 168 CLR 23 John Fairfax & Sons Ltd v Cojuangco (1987) 8 NSWLR 145 John Fairfax & Sons Pty Ltd v Cojuangco [1988] HCA 54; (1988) 165 CLR 346 Lachlan v HP Mercantile Pty Ltd [2015] NSWCA 130; (2015) 89 NSWLR 198 Lange v Australian Broadcasting Corporation [1997] HCA 25; (1997) 189 CLR 520 Levy v Bablis [2012] NSWCA 128 Liu v The Age Company [2010] NSWSC 1176 Liu v The Age Company Ltd [2012] NSWSC 12; (2012) 257 FLR 360 Malouf v Malouf [1999] FCA 284; (1999) 86 FCR 134 McCloy v New South Wales [2015] HCA 34; (2015) 89 ALJR 857 McGuinness v Attorney-General (Vic) [1940] HCA 6; (1940) 63 CLR 73 Mullins v Howell (1879) 11 Ch D 763 Nominal Defendant v Manning [2000] NSWCA 80; (2000) 50 NSWLR 139 Norbis v Norbis [1986] HCA 17; (1986) 161 CLR 513 Norwich Pharmacal Co v Customs & Excise Commissioners [1974] AC 133 NRMA Ltd v John Fairfax Publications Pty Ltd (Supreme Court (NSW), Master Macready, undated, file number 004454/01, unrep) Oshlack v Richmond River Council [1998] HCA 11; (1998) 193 CLR 72 Pavlovic v Universal Music Australia Pty Ltd (No 2) [2016] NSWCA 31 Plymouth Mutual Co-operative & Industrial Society Ltd v Traders' Publishing Association Ltd [1906] 1 KB 403 Re Application of Cojuangco (1986) 4 NSWLR 513 Re Wakim; Ex parte McNally [1999] HCA 27; (1999) 198 CLR 511 Reid v Howard [1995] HCA 40; (1995) 184 CLR 1 Riley McKay Pty Ltd v McKay [1982] 1 NSWLR 264 Rinehart v Welker [2012] NSWCA 95 Roads & Traffic Authority of NSW v Australian National Car Parks Pty Ltd [2007] NSWCA 114 South Suburban Co-operative Society Limited v Orum [1937] 2 KB 690 State of New South Wales v Plaintiff A [2012] NSWCA 248 Steffen v ANZ Banking Group [2009] NSWSC 883 Stephens v West Australian Newspapers Limited [1994] HCA 45; (1994) 182 CLR 211 Sydney City Council v Geftlick [2006] NSWCA 280 The Age Company Ltd v Liu [2013] NSWCA 26; (2013) 82 NSWLR 268 The Age Company Ltd v Liu [2013] HCATrans 205 The Herald & Weekly Times Ltd v Guide Dog Owners' & Friends Association [1990] VR 451 Tomlinson v Ramsey Food Processing Pty Ltd [2015] HCA 28; (2015) 89 ALJR 750 Totalise Plc v The Motley Fool Ltd [2001] EWCA Civ 1897; [2002] 1 WLR 1233 Waterhouse v Broadcasting Station 2GB Pty Ltd (1985) 1 NSWLR 58 Wentworth v Rogers (Supreme Court (NSW), Sperling J, 28 April 1995, unrep) West Australian Newspapers Ltd v Bond [2009] WASCA 127; (2009) 40 WAR 164 Wran v Australian Broadcasting Commission [1984] 3 NSWLR 241 Zelden v Sewell; Henamast Pty Ltd v Sewell [2011] NSWCA 56 Texts Cited: Spencer Bower, A Code of the Law of Actionable Defamation, (2nd ed 1923, Butterworth & Co) Category: Principal judgment Parties: Helen Liu (Appellant) The Age Company Pty Ltd (First Respondent) Richard Baker (Second Respondent) Phillip Dorling (Third Respondent) Nick McKenzie (Fourth Respondent) Representation: Counsel: B McClintock SC and G Rubagotti (Appellant) T Blackburn SC and ATS Dawson (Respondents)