Relevant law
10 An application may be brought for leave to commence an action for defamation even though one year has elapsed since publication: s 40(1) of the Limitation Act. Further, 'a court, if satisfied that it was not reasonable in the circumstances for the plaintiff to have commenced an action in relation to the matter complained of within one year from the publication, must extend the time in which the action can be commenced': s 40(2).
11 As to the hurdle imposed by s 40(2), in Rayney v State of Western Australia (No 3) [2010] WASC 83 at [41], Martin CJ said:
That is a difficult hurdle for a plaintiff to overcome unless there are some unusual circumstances such as, for example, the plaintiff being unaware of the publication within the period of one year from the publication having occurred. The important points to note are that by virtue of s 79 of the Limitation Act the onus of proving that it was not reasonable to have commenced within the period of one year rests with the plaintiff, and as the Court of Appeal of Queensland observed in the case of Noonan v MacLennan [2010] QCA 50, the burden that must be discharged is to establish that it was not reasonable to have commenced within one year. It is not a burden which is discharged by showing that it was not unreasonable to have not commenced within one year.
12 As to whether there was a general discretionary power to extend, Martin CJ concluded at [50] that there is no such power to extend time 'but rather if the plaintiff satisfies the onerous conditions specified by s 40(2), there is a duty to extend time'.
13 It is common ground that, where the duty to extend time arises, the Court has a discretion as to the length of any such extension. The matters that bear upon the nature of that extension were considered in Meyer v Solomon [2021] WASCA 168 which concerned an appeal against a refusal of an extension application. The primary judge had held that it was not reasonable for defamation proceedings to have been commenced within one year of publication but as a matter of discretion decided not to extend the time for a period that would have been sufficient to bring the proceedings within time. On appeal it was contended that there was significance in the fact that s 40(2) was expressed to be subject to s 40(3) which provides: 'An application relating to the publication of defamatory matter cannot be commenced if 3 years have elapsed since the publication'.
14 The submission advanced before the Court of Appeal was to the effect that if the Court was satisfied that it was not reasonable in the circumstances for the action to have been commenced within a year then there was no discretion to be exercised as to the length of any extension. Rather, time was extended by operation of s 40(3) to three years from publication. The submission to that effect was not accepted. The Court found that there was a discretion to be exercised. In considering an alternative contention that the exercise of the discretion by the primary judge had miscarried, Buss P and Mitchell JA gave separate reasons as to the nature of the discretion that did arise if the Court was satisfied as provided in s 40(2) and, in consequence, there was a duty to extend time.
15 Buss P concluded that, in addition to matters specified in s 44 (which must be taken into account in respect of applications for extensions of the limitation period that apply to a number of different types of causes of action), the factors which the court 'is entitled or bound to consider (in addition to the mandatory considerations specified in s 44) are to be ascertained by implication from subject matter, scope and apparent purpose of s 40 in the context of the Act as a whole': at [135].
16 His Honour then said (at [136]):
In my opinion, relevant considerations that a court may take into account in deciding upon the length of any extension under s 40(2) include:
(a) the nature and extent of any delay by the plaintiff, after the one year period since the publication elapsed, in making the extension application;
(b) the reasons for any such delay; and
(c) when it would be or would have been reasonable in the circumstances for the plaintiff to commence or to have commenced the defamation action.
17 His Honour declined to state exhaustively all relevant considerations that must be taken into account: at [137].
18 Mitchell JA observed that '[t]he court only has power to extend time once it is satisfied that it was not reasonable in the circumstances for the plaintiff to have commenced an action in relation to the matter complained of within one year from the publication'. His Honour referred to that state of satisfaction as 'the Precondition': at [182]. As to the discretion to extend time if the Precondition is met, his Honour reasoned as follows (at [192]-[195]):
(1) 'The discretion must be exercised having regard to the statutory purpose that defamation actions must be commenced promptly';
(2) 'It is also implicit from the specification of the Precondition that the discretion will be exercised having regard to when it was reasonable in the circumstances for the action to have been commenced';
(3) '[I]t would not ordinarily be appropriate for the court to grant an extension for a period shorter than that which the court considered was reasonably required for the action to be commenced';
(4) 'The discretion as to the length of the extension must also be exercised having regard to the mandatory relevant considerations identified in s 44 of the Act'; and
(5) The discretion must be exercised reasonably and judicially.
19 The third member of the Court was Murphy JA. His Honour agreed with Buss P as to the result but did not express a view as to the differences in reasoning as between Buss P and Mitchell JA as to the nature of the discretion: at [154].
20 Respectfully, there is much to commend the view of Mitchell JA. The discretion is to be implied as a consequence of the terms of s 40(2). Therefore, the discretion should be informed by the immediate context, particularly the circumstances that give rise to the duty to extend. The rationale for confining the application of the one year limitation period for defamation actions to all instances other than those where the court is affirmatively satisfied that it was not reasonable for the applicant in a particular case to commence a particular defamation claim within the one year period does not cease to have significance in cases where the court is so affirmatively satisfied. There is much to be said for the view that, in such cases, the discretion is to be guided by an inquiry as to how much longer it would be objectively not reasonable to expect the applicant to commence the defamation claim in the circumstances of the particular case.
21 However, the approach of Buss P finds support in the reasoning of McColl JA (Simpson and Payne JJA agreeing) in Barrett v TCN Channel Nine Pty Ltd [2017] NSWCA 304; (2017) 96 NSWLR 478 at [79]-[82] in respect of a similarly worded provision (being s 56A of the Limitation Act 1969 (NSW)). Also, as her Honour noted, it finds support in the overall approach to the exercise of powers to extend limitation periods as articulated by McHugh J (Dawson J agreeing) in Brisbane South Regional Health Authority v Taylor (1996) 186 CLR 541, where his Honour said at 553-554:
A limitation period should not be seen therefore as an arbitrary cut off point unrelated to the demands of justice or the general welfare of society. It represents the legislature's judgment that the welfare of society is best served by causes of action being litigated within the limitation period, notwithstanding that the enactment of that period may often result in a good cause of action being defeated. Against this background, I do not see any warrant for treating provisions that provide for an extension of time for commencing an action as having a standing equal to or greater than those provisions that enact limitation periods. A limitation provision is the general rule; an extension provision is the exception to it. The extension provision is a legislative recognition that general conceptions of what justice requires in particular categories of cases may sometimes be overridden by the facts of an individual case… whether injustice has occurred must be evaluated by reference to the rationales of the limitation period that has barred the action. The discretion to extend should therefore be seen as requiring the applicant to show that his or her case is a justifiable exception to the rule that the welfare of the State is best served by the limitation period in question. Accordingly, when an applicant seeks an extension of time to commence an action after a limitation period has expired, he or she has the positive burden of demonstrating that the justice of the case requires that extension.
And later at 554:
The object of the discretion, to use the words of Dixon CJ in a similar context, 'is to leave scope for the judicial or other officer who is investigating the facts and considering the general purpose of the enactment to give effect to his view of the justice of the case.' In determining what the justice of the case requires, the judge is entitled to look at every relevant fact and circumstance that does not travel beyond the scope and purpose of the enactment authorising an extension of the limitation period.
(footnote omitted)
22 The same approach was adopted in King v Comiskey Management Services Pty Ltd [2020] QCA 229 at [14] (Fraser JA, McMurdo JA and Jackson J agreeing).
23 For those reasons, it is appropriate to apply the broader approach as articulated by Buss P to the nature of the discretion to be exercised in carrying out the duty to extend time.
24 As to whether the requirements of s 40(2) have been met, although there are differences between the jurisdictions, all require the applicant for an extension of the limitation period to satisfy the court that it was not reasonable in all the circumstances for the party seeking relief to have commenced proceedings within one year of publication. In Joukhador v Network Ten Pty Ltd [2021] FCAFC 37; (2021) 283 FCR 1, a Full Court (Rares, Wigney and Bromwich JJ) considered at [49]-[60] what was required in undertaking an evaluation of the character. The following conclusions (which adopt the language of the Full Court) apply equally in the case of s 40(2):
(1) The burden of proof is on the claimant (see also, s 79(3) of the Limitation Act).
(2) The burden may be discharged by an affidavit sworn on information and belief.
(3) The Court examines the circumstances as they appear objectively to it, not as the claimant believed them to be.
(4) The circumstances include the objective situation of the claimant.
(5) The Court is required to weigh together all of the relevant circumstances that cohered to bring about the objective fact that the claimant did not sue with one year of the publication.
(6) The objective circumstances must be evaluated as a whole, not piecemeal.
(7) While the onus of proof will only be discharged in relatively unusual circumstances, there is no exhaustive list of the kinds of cases that will fall within the statutory criterion that the section prescribed.
25 As to what is meant by objective circumstances, I respectfully agree with what was said by Lee J in Lehrmann v Network Ten Pty Limited (Limitation Extension) [2023] FCA 385 at [13]-[16] about not overcomplicating matters. The statutory language must be given effect. As has been noted, it requires the court to reach an overall affirmative state of satisfaction on all the evidence that 'it was not reasonable in the circumstances for the [applicant] to have commenced an action in relation to the matter complained of within a year'.
26 The objective circumstances are those that pertain from the perspective of the applicant in the individual case. Those circumstances concern the individual characteristics and situation of the applicant as well as the nature of what is required in order to be able to commence proceedings in the particular case. Principally, the Court is concerned with the objective reasonableness of the actual reasons why the proceedings were not commenced within a year. It may also be concerned with whether, viewed objectively, there was something about the circumstances that meant that it was not reasonable for the action to have been commenced within a year. The inquiry does not concern what the applicant believed to be the position or the reasonableness of that belief. It concerns whether the Court is actually persuaded that it was not objectively reasonable for an applicant in the same position as the applicant to have commenced proceedings within one year.
27 The evaluation to be undertaken does not concern whether each day or week of the one year period can be explained. Nor does it concern whether there were parts of the year when there was no objectively valid reason for delay. Rather, it requires an overall assessment as to whether it was not reasonable for the applicant to have commenced within a year.
28 Finally, where, as here, there are issues as to the extent to which the delay in commencing proceedings may be attributed to the conduct of lawyers retained by a prospective applicant then matters must be viewed through the perspective of the applicant. There is no express statutory attribution of conduct by lawyers to the party seeking the extension. It may be that dealings with lawyers form part of the circumstances to be considered. In a particular case, those circumstances may include the fact that the applicant delayed in retaining lawyers or failed to properly instruct them or simply left matters in the hands of lawyers. However, it is not the reasonableness or otherwise of the lawyer's conduct, in respects not evident to the applicant, about which the Court is to be satisfied. Rather, it is the conduct of the applicant in dealing with lawyers that is to be evaluated. A failure by an applicant to follow up on delay by lawyers may form part of that conduct.