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[2025] VCC 1170
defendant. Application for serious harm determination prior to trial granted. Strike out application dismissed. Further particulars ordered for paragraphs 30, 34 and 34A of the Amended Statement of Claim.
The Court ordered that the question of whether the defamatory publications caused serious harm to the plaintiffs' reputations be decided before the full trial takes place. The Court rejected the plaintiffs' argument that special circumstances existed to delay this decision, noting that the potential cost savings and early stage of the proceedings favoured an early determination. The Court also dismissed the defendant's application to strike out parts of the claim but required the plaintiffs to provide more detailed information about how they say the publications caused them to lose business contracts.
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Ruling: Application for the question of serious harm to be determined prior to trial granted.
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Application to strike out the Amended Statement of Claim, or parts thereof, dismissed.
The plaintiffs to provide further and better particulars of paragraphs 30, 34, and 34A of the Amended Statement of Claim.
"a. The imputations conveyed by the Publications are highly defamatory allegations of criminal behaviour and dishonesty and have an inherent tendency to seriously injure ... [Mr Mann] and ... [Mr Arora's] personal and business reputations.
"10A Serious harm element of cause of action for defamation
(1) it is an element (the serious harm element) of a cause of action for defamation that the publication of defamatory matter about a person has caused, or is likely to cause, serious harm to the reputation of the person.
(3) the judicial officer (and not the jury) in a defamation proceeding is to determine whether the serious harm element is established.
(4) Without limiting subsection (3), the judicial officer may (whether on the application of a party or on the judicial officer's own motion) -
(a) determine whether the serious harm element is established at any time before the trial for the proceeding commences or during the trial; and
(b) make any orders the judicial officer considers appropriate concerning the determination of the issue (including dismissing the proceeding if satisfied the element is not established).
(5) If a party applies for the serious harm element to be determined before the trial for the proceeding commences, the judicial officer is to determine the issue as soon as practicable before the trial commences unless satisfied that there are special circumstances justifying the postponement of the determination to a later stage of the proceeding (including during the trial).
(6) The matters a judicial officer may take into account in deciding whether there are special circumstances for the purposes of subsection (5) include (but are not limited to) the following -
(b) the resources available to the court at the time;
(c) the extent to which establishing the serious harm element is linked to other issues for determination during the trial for the proceeding.
(7) Without limiting subsection (5), the judicial officer may determine the serious harm element is not established on the pleadings without the need for further evidence if satisfied that the pleaded particulars are insufficient to establish the element.
"... Whilst the serious harm element of the tort is not to be determined in this application, it nevertheless requires at least some consideration. It is likely to be linked, to some extent, to the matters that might constitute special circumstances.
For example in a claim where serious harm is highly likely to be established, the costs involved in having a preliminary hearing might constitute special circumstances, even if the costs themselves are not excessive. Similarly, using Court resources to determine an element separately that would simply add to the Court's burden and have no potential to reduce the issues in dispute, or the time taken at trial, could constitute special circumstances.
... I do consider the parties' arguments that touch on the prospect of serious harm being established, because it factors into the analysis I am required to undertake. 'Special circumstances' must be based on 'the facts at hand' and those facts must be unusual, uncommon or out of the ordinary. This is not a case in which it is so obvious that serious harm will be established that having a separate hearing will be a waste of time, costs and Court resources. Nor is it so obvious that serious harm will not be established so as to enable a determination of the element on the pleadings.
The words 'frivolous' or 'trivial' are not included in the legislation, as one might expect if the serious harm element was only to be determined prior to trial in such cases. A lack of triviality or frivolity is insufficient to qualify for 'special circumstances'."
"... there will be many defamation trials which proceed without orders being made for a serious harm trial beforehand, generally where serious harm cannot be severed from the issues of the trial, or because the imputations are self-evidently such that serious harm is obvious ... For this reason, as is noted in Alexander-Theodot[o]u v Kounis, orders for separate early hearings of serious harm are 'rather less common' (per Warby J at [35]) than would otherwise be expected to be the case."
"Having reviewed the authorities, we favour the approach of the Full Federal Court in Beadle that the phrase 'special circumstances' does not require any judicial gloss. That said, we think the phrase, as used in s 10A(5) of the Act, encompasses circumstances which are not routine or run-of-the-mill. Additionally, we would endorse what Spiegelman CJ said in Simpson that there will be circumstances which, either alone or in combination with other factors, justify a conclusion that 'special circumstances' are made out on the facts of a particular case; and it will be 'comparatively rare for an issue to arise in terms of a proposition that a particular circumstance is incapable, as a matter of law, of ever constituting a 'special circumstance'."
(a) The gravity of the defamation;
(b) The extent of publication;
(c) By whom the matter was published;
(d) The identity of the recipients; and
(e) The state of the claimant's reputation prior to the publication.
"... the serious harm element is not concerned with the inherent tendency of the words to cause serious harm to the reputation of an applicant, but with actual harm ...
The key requirement of s 10A is that an applicant must prove that the publication of the defamatory matter caused, or is likely to cause, serious harm to reputation. The reference to 'defamatory matter' in s 10A suggests that the causal relationship is with the publication of the matter in a defamatory sense ...
Serious harm to reputation, or likely serious harm to reputation, are facts that must be proved by evidence. The evidence may include direct evidence, but depending on the circumstances of the particular case, a claim of serious harm need not be supported by direct evidence. That is because like any fact in issue serious harm to reputation may arise as an inference to be drawn from all the circumstances of the case ... Those circumstances may include a combination of the following -
(a) the inherent tendency of the defamatory matter and its actual or probable impact on those to whom it was published, in other words, the gravity of the imputations;
(b) the extent of publication, any likely republication, and any likely 'grapevine' or 'percolation';
(c) whether there was a prompt apology, and the breadth of the audience to which any apology was published;
(d) the reputation of the publisher - a defamatory publication by a generally reputable publisher that is represented as being reliable and the product of research might be more capable of causing serious harm than one by a publisher that is not so reputable;
(e) the medium of the publication - a transient publication might cause less harm to reputation than one in print or which is available for viewing online for an extended period or indefinitely;
(f) the situation of the applicant, including the applicant's existing reputation in the relevant sector;
(g) the identity of the persons to whom the defamatory matter was published; and
(h) the inherent probabilities generally."
"In light of the object in s 3(c) of the Defamation Act to provide effective and fair remedies for persons whose reputations are harmed, s 10A(5) suggests that the serious harm element may be capable of ready determination prior to trial, thereby indicating that 'serious harm to reputation' is harm that is at least not trivial or minor in nature, as the second reading speeches to the Victorian and New South Wales Bills would indicate, rather than establishing an especially high threshold requiring extensive evidence to be led by an applicant. ...
As I have identified, the context of s 10A, understood in its broadest sense, indicates that the high-level object of the provision is to preclude claims that are frivolous or trivial. Of course, insisting on proof of 'serious harm' does more than simply require proof that the harm to reputation caused by a publication is more than frivolous or trivial. Nevertheless, the object of the provision informs the proper construction that should be given to the statutory concept of 'serious harm'."
(a) the jury might make a different determination of the imputations at trial; and
(b) serious harm would then be at large.
"... The current practice in Australia seems to be that, for the purposes of a serious harm hearing, the imputations are accepted as pleaded by the plaintiff, unless an application has also been made for a determination on meaning.
This raises the theoretical, though perhaps unlikely, prospect that serious harm could be found where imputations are not conveyed, or where imputations are overturned on appeal. ... ."
Strike out application/application for further particulars
Where an indorsement of claim on a writ or originating motion or a pleading or any part of an indorsement of claim or pleading -
(a) does not disclose a cause of action or defence;
(b) is scandalous, frivolous or vexatious;
(c) may prejudice, embarrass or delay the fair trial of the proceeding; or
(d) is otherwise an abuse of the process of the Court -
the Court may order that the whole or part of the indorsement or pleading be struck out or amended."
(1) The Court may order a party to serve on any other party particulars or further and better particulars of any fact or matter stated in the party's pleading or in an affidavit filed on that party's behalf ordered to stand as a pleading.
(2) The Court shall not make an order under paragraph (1) before service of the defence unless the order is necessary or desirable -
(3) The Court may refuse to make an order under paragraph (1) if the party applying for the order did not first apply by letter for the particulars the party requires."
"... Section 10A(1) makes it 'an element ... of a cause of action' in relation to the publication of defamatory matter that the matter caused serious harm to reputation. The word 'publication' in s 10A(1) must be taken to refer to the publication of the defamatory matter by a respondent, such that the subsection is concerned with the collective effect of the publication by a respondent of the same defamatory matter in respect of which a cause of action is otherwise established. The collective effect may result from the publication by a respondent of the same or substantially the same matter on multiple occasions where each actionable publication gives rise to a separate cause of action. Therefore, harm to reputation caused by separate publications of the same or substantially the same matter, as with a mass media publication, may be aggregated ... However, the serious harm element must be established for each particular defamatory matter on which the applicant sues and otherwise establishes liability, and not by reference to the accumulated consequences of various publications of different matters, some of which I have held not to be defamatory in the way claimed by the applicant. ... ."
"The complaints here were numerous but in substance came down to the absence of any precisely determinable connexion between the alleged false statement, the circumstances in which it was made, the persons to whom it was made or who heard it made, their reaction to it and the alleged consequent loss and damage.
Counsel for the applicant submitted that it is impermissible or at least unacceptable to mix up a number of different allegations of loss and damage apparently relating to different statements or possibly to more than one statement and then allege a generalised conclusion that the statement or those statements somehow resulted in the respondent sustaining some form of loss or damage. In counsel's submission, the respondent needs to plead a precise chain of connection between the alleged false statement and the loss and damage suffered.
In our view, those complaints are also well founded. What needs to be done in order to put the pleading into proper order is to allege in a precise, ordered and logical fashion, which statement is alleged to have been made, to whom it was made and how the making of it led to results which, it is said can be seen, were causative of loss and damage that the respondent is alleged to have suffered."
"... [T]here are significant material facts that work against the plaintiff's loss theory that have simply been ignored. These matters include that there were multiple publications of a similar nature online by others, apart from the second defendant. The complexity of building contracts as transactions is relevant to proper assumptions about what matters affect, or induce, a customer's decision to enter into a building contract at a particular price. ...
... Cases where the court has been required to do its best with a paucity of evidence provide no basis to contend for the sufficiency of poorly thought out particulars. In Goldsmith v Sandilands, Gleeson CJ remarked:
'The facts in issue in a civil action case emerge from the pleadings, which, in turn, are framed in the light of the legal principles governing the case. Facts relevant to facts in issue emerge from the particulars and the evidence. The function of particulars is not to expand the issues defined by the pleadings, but 'to fill in the picture of the plaintiff's cause of action with information sufficiently detailed to put the defendant on his guard as to the case he has to meet and to enable him to prepare for trial'. The function of evidence is to advance, or cut down, the case of a party in accordance with the rules of statute or common law that determine the nature of the information a court will receive [...].'
I add that in considering the objections to the pleading, the overarching purpose of the rules of court in relation to civil proceedings is to facilitate the just, efficient, timely and cost-effective resolution of the real issues in dispute. The efficient conduct of the business of the court and dealing with this proceeding in a manner proportionate to the complexity or importance of the issues in dispute and the amount in dispute are not objects that are advanced by these particulars. The particulars of loss that remain, although they confine the loss alleged to be caused, do not fill in the picture of that loss as it will be presented at trial. The risk that the issues in this proceeding will become unmanageable at trial and that costs may be disproportionate are unacceptable on the pleading as presently advanced. ...
... [T]hese particulars are likely to prejudice, embarrass or delay a fair trial of this proceeding. ... ."
[1] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 11a
[2] Amended Statement of Claim, paragraph 20
[3] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 11b
[4] Amended Statement of Claim, paragraph 21
[5] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 11c
[6] Amended Statement of Claim, paragraph 22
[7] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 11d
[8] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 17
[9] Amended Statement of Claim, paragraph 23
[10] Affidavit of Mr Sharma affirmed on 23 June 2025, paragraph 11e
[11] Amended Statement of Claim, paragraph 24
[12] Amended Statement of Claim, paragraph 25
[13] [2022] VCC 620 at paragraphs [43]-[46] (footnotes omitted)
[14] [2023] NSWDC 63 at paragraph [11]
[15] [2023] VSCA 198 at paragraph [44]
[16] [2024] QSC 192 at paragraphs [58]-[72]
[17] [2025] FCA 442 at paragraphs [368]-[370]
[18] Ibid at paragraphs [377] and [407]
[19] [2022] VCC 2240 at paragraphs [11]-[12]
[21] [2014] VSCA 302 ("Baker v Mutton")
[22] Ibid at paragraphs [18]-[20]
[23] [2015] VSC 276 ("Harmonious Blend")
[24] Ibid at paragraphs [50], [51], [53] and [54]
Mann & Ors
Sharma
Application for serious harm determination prior to trial granted. Strike out application dismissed. Further particulars ordered for paragraphs 30, 34 and 34A of the Amended Statement of Claim.