[This headnote is not to be read as part of the Judgment]
Nationwide News Pty Ltd (Nationwide) sought leave to appeal from a decision in which the primary judge declared, in substance, that defamation proceedings brought against Nationwide by the respondent, Mr Damien Vass, had been settled when he accepted an offer of amends made by Nationwide pursuant to Pt 3, Div 1 of the Defamation Act 2005 (NSW) (2005 Act) (amends provisions).
In 2015, Nationwide published an article in The Sunday Telegraph which conveyed imputations to the effect that Mr Vass had "dealt inappropriately" with a five-panelled artwork by selling one of its component panels separately, contrary to a term of the contract for sale that it must not be broken up.
Mr Vass served Nationwide with a concerns notice setting out imputations he alleged were carried by the matter complained of, each of which he contended was "highly defamatory and completely false". In response, Nationwide sent Mr Vass an offer to make amends (first offer of amends), the terms of which included an agreement not to republish the matter complained of or the imputations. The offer specified it remained "open to be accepted until commencement of the trial, unless withdrawn in writing". It made no offer to pay any compensation. Mr Vass replied complaining the offer was not reasonable.
A year after filing a statement of claim commencing proceedings against Nationwide, Mr Vass sent Nationwide a "without prejudice" letter enclosing an offer of compromise for judgment in the sum of $149,001 pursuant to Uniform Civil Procedure Rules 2005 (NSW) (UCPR), r 20.26. In response, Nationwide withdrew the first offer of amends and made a "renewed offer" (second offer of amends) in substantially the same terms as the first, except that it included an offer to pay $50,000 by way of damages.
After Nationwide filed and served its defence which pleaded the making of the two offers of amends as a defence pursuant to s 18 of the 2005 Act, Mr Vass sent Nationwide a second offer of compromise, again pursuant to UCPR r 20.26. He sought judgment in the sum of $449,001. Nationwide did not respond.
Five weeks prior to the date listed for trial of the proceedings, Mr Vass wrote to Nationwide accepting the second offer of amends. Nationwide responded that his letter proceeded upon the erroneous assumption that the second offer of amends remained open for acceptance.
The matter was relisted before McCallum J to determine whether Mr Vass had validly accepted the second offer of amends. Her Honour held that he had. She rejected Nationwide's argument that the second offer of compromise was a counteroffer which implicitly rejected the second offer of amends.
The principal issue on appeal was whether common law principles of contract concerning offer and acceptance operate within the framework of the amends provisions such that service of the second offer of compromise constituted an implicit rejection of the second offer of amends with the consequence that that offer was not open for acceptance.
Nationwide sought leave to appeal.
The Court (McColl, Basten and Leeming JJA), granting leave to appeal but dismissing the appeal, held:
Per McColl JA:
(1) It is apparent from the text, legislative history and purpose the amends provisions seek to achieve that the legislature did not intend them to be construed by reference to ordinary contractual principles: at [86], [89], [104] - [110].
Malika Holdings Pty Ltd v Stretton (2001) 204 CLR 290; [2001] HCA 14; Gifford v Strang Patrick Stevedoring Pty Ltd (2003) 214 CLR 269; [2003] HCA 33; Electrolux Home Products Pty Ltd v Australian Workers' Union (2004) 221 CLR 309; [2004] HCA 40 applied;
Moore v Scottish Daily Record & Sunday Mail Ltd [2007] ScotCS CSOH 24; Tesco Stores Ltd v Guardian News & Media Ltd [2009] EMLR 5; [2008] EWHC B14 (QB); Warren v The Random House Group Ltd [2009] QB 600; [2008] EWCA Civ 834; Loughton Contracts Plc v Dun & Bradstreet Limited [2006] EWHC 1224 (QB); [2006] All ER (D) 368; Barrow v Ackland & Gibson [2017] VSC 485 considered.
(2) The amends provisions establish a discrete scheme, compliance with which depends upon taking the steps for which it provides and with which alternative means of resolving litigation do not intersect, save to the extent that all attempts to settle may be brought to bear pursuant to s 40 of the 2005 Act: at [85].
(3) Like the amends provisions, the compromise provisions in Pt 20 of the UCPR create a statutory scheme. An offer of compromise made pursuant to a statutory scheme acquires a significance which a settlement offer made under ordinary contractual principles does not attract. The compromise provisions operate separately from the amends provisions as s 12 of the 2005 Act makes clear. Accordingly, Mr Vass's second offer of compromise did not operate as a counteroffer to the second offer of amends: at [91] - [94], [111] - [112].
Berowra Holdings Pty Ltd v Gordon (2006) 225 CLR 364; [2006] HCA 32 referred to.
(4) The second offer of amends stood to be determined by its terms. They provided that the offer of amends remained "open to be accepted until commencement of the trial, unless withdrawn in writing." Because it was not withdrawn, and because both Mr Vass's offers of compromise were made pursuant to the provisions of the UCPR "instead of" under the amends provisions (as was expressly contemplated by s 12(2) of the 2005 Act), the second offer of compromise did not operate as a counteroffer to the second offer of amends: at [112] - [113].
Per Basten JA:
(5) The terms of an offer of amends must be assessed against the statutory scheme in order to understand how they should be construed. An offer expressed to be open until trial and only to be capable of withdrawal by notice in writing, was capable of acceptance at a time when no notice of withdrawal had been given: at [124], [159].
Bushara v Nobananbas Pty Ltd [2012] NSWSC 63; Pingel v Toowoomba Newspapers Pty Ltd [2010] QCA 175; Barrow v Ackland [2017] VSC 485 referred to.
(6) The statutory scheme under the amends provisions should be seen to operate independently of the general provisions relating to offers of compromise. It is neither necessary nor appropriate to introduce into the 2005 Act concepts found within the UCPR: at [144], [161].
Per Leeming JA:
(7) Nothing in the 2005 Act detracts from a publisher's ability to prescribe the manner of acceptance or circumstances in which an offer will come to an end. There is no reason to displace the natural meaning of the words included in both of Nationwide's offers of amends. Nationwide's offers contained but a single qualification upon the period during which they were open for acceptance, namely, "unless withdrawn in writing". On their proper construction, they were not subject to a second and additional qualification of being withdrawn by a rejection or the making of a counteroffer: at [170] - [171], [174] - [175].
Brambles Holdings Ltd v Bathurst City Council (2001) 53 NSWLR 153; [2001] NSWCA 61; Ballas v Theophilos (No 2) (1957) 98 CLR 193; [1957] HCA 90; Pingel v Toowoomba Newspapers Pty Ltd [2010] QCA 175 referred to.
(8) By withdrawing the first offer of amends, Nationwide unequivocally proceeded on the basis that its original offer had remained open for acceptance for almost two years, notwithstanding the service of the statement of claim (not to mention the response from Mr Vass that its offer was not reasonable): at [171].