The defence of contextual truth - general
13 Section 26 of the UDA provides:
26 Defence of contextual truth
It is a defence to the publication of defamatory matter if the defendant proves that -
(a) the matter carried, in addition to the defamatory imputations of which the plaintiff complains, one or more other imputations ("contextual imputations") that are substantially true, and
(b) the defamatory imputations do not further harm the reputation of the plaintiff because of the substantial truth of the contextual imputations.
14 The background to the introduction of s 26 of the UDA was explained by McColl JA with whom Beazley and Giles JJA agreed, in Fairfax Media Publications Pty Ltd v Kermode [2011] NSWCA 174; (2011) 81 NSWLR 157 at [31] et seq. Her Honour set out relevant parts of the Explanatory Memoranda relating to its introduction:
[Clause 26] provides for a defence of contextual truth. The defence deals with the case where there are a number of defamatory imputations carried by a matter but the plaintiff has chosen to proceed with one or more but not all of them. In that circumstance, the defendant may have a defence of contextual truth if the defendant proves: [the relevant provision dealing with the defence of contextual truth was set out]
…
At general law, the truth of each defamatory imputation carried by the matter published that is pleaded by the plaintiff must be proved to make out the defence of justification unless it can be established that the imputations were not separate and distinct but, as a whole, carried a "common sting". In that case, the defence of justification is made out if the defendant can show that the "common sting" is true. See Polly Peck (Holdings) Plc v Trelfold [1986] QB 1000 at 1032. The defence of contextual truth created by the proposed Act, unlike the general law, will apply even if the contextual imputations are separate and distinct from the defamatory imputations of which the plaintiff complains."
15 In Crosby v Kelly [2013] FCA 1343 at [16], Rares J said of the counterpart of s 26 in the Civil Law (Wrongs) Act 2002 (ACT) that, in order for the defence of contextual truth to be established, the respondent must prove:
• the matter complained of carried one or more other defamatory imputations, in addition to those of which the plaintiff complains;
• the contextual imputation(s) is or are substantially true; and
• because of the substantial truth of the contextual imputation(s), the imputation(s) on which the plaintiff relies did not further harm his or her reputation.
(Emphasis in the original)
16 The first of these elements is important. A defence of contextual truth requires a respondent to establish that the impugned matter conveyed other defamatory imputations in addition to those pleaded by the applicant. This requires a respondent to show that the impugned matter conveyed imputations which differ in substance from those pleaded by the applicant.
17 While the imputations in a defence of contextual truth must differ in substance from the imputations pleaded by the applicant, they need not differ in kind: Fairfax Media Publications Pty Ltd v Zeccola [2015] NSWCA 329; (2015) 91 NSWLR 341 at [42], [70]-[74], [112], [114].
18 In Ange v Fairfax Media Publications Pty Ltd [2011] NSWSC 204, Nicholas J said of the "differ in substance" requirement:
[28] The test is straightforward enough, and it would be unhelpful to embroider it with some idiosyncratic gloss. The difficulty sometimes lies in its application in a particular case. Ultimately, the result of the evaluation process is one of impression taking into account the defamatory quality of each party's imputations with regard to the contents of the matter complained of which conveys them. In order to consider whether the defendants' contextual imputations are capable of being conveyed by the matter complained of at the same time as and in addition to the imputations pleaded by the plaintiff it is necessary to establish "... just what is the precise act or condition which is asserted of or attributed to the plaintiff both by the plaintiff's own imputations and by the defendants' contextual imputations" … The scope of an imputation must be taken to include all imputations which do not differ in substance, or are less injurious, or which are but shades, nuances, and gradations of meaning of substantially similar imputations … Where the plaintiff's imputations are more than one it will be necessary to consider all of them, separately and in combination, to determine whether a contextual imputation is carried in addition to them. The exercise requires a commonsense approach to an understanding of the publication which is expected of the ordinary reasonable reader.
(Citations omitted)
19 This passage was quoted with approval by McColl JA in Abou-Lokmeh v Habour Radio Pty Ltd [2016] NSWCA 228 at [30].
20 In Abou-Lokmeh, McColl JA said that one way by which the question of whether a contextual imputation differs in substance from the plaintiff's imputation may be determined is to identify what the defendant must prove in order to justify the contextual imputation, or to ask "what may be proved by way of justification to each such imputation". However, as the authorities to which her Honour referred in support of these propositions (including her own judgment in John Fairfax Publications Pty Ltd v Hitchcock [2007] NSWCA 364; (2007) 70 NSWLR 484 at [188]) indicate, these tests are not the only way by which the issue may be determined.
21 Another way by which a respondent may establish a contextual imputation different in substance from that pleaded by an applicant is to show that the impugned matter conveyed a general imputation in addition to a particular imputation pleaded by the applicant. Provided that such a general imputation is different in substance, it may be pleaded even though it relates to the same subject matter: Zeccola at [49]-[50]; Abou-Lokmeh at [32]-[34], [43]-[44]; and Cornwell v Channel Seven Sydney Pty Ltd [2016] NSWCA 255 at [59]-[63]. As was noted by Gleeson JA in Cornwell at [60], in some cases a single alleged instance of misconduct may be so serious that it may, at the same time, convey a general charge against the applicant and there may be cases in which the collection of instances of misconduct in the impugned matter will be capable of conveying a general imputation in addition to specific imputations, at [62].
22 Nevertheless, the question of whether an imputation amounts to a general charge against the character of a plaintiff is one to be approached with care, so as to avoid unduly opening up avenues for defences of justification and contextual truth which would otherwise be barred to a defendant and thus prolong the hearing of the action: Abou-Lokmeh at [47] (McColl JA); Cornwell at [50] (Gleeson JA).
23 Counsel for Mr McGowan referred the Court to three authorities with a view to illustrating, as I understood it, the way in which courts have distinguished between specific and general imputations in contexts like the present. The first was State of New South Wales v Deren [1999] NSWCA 22 in which Priestley JA held, at [84], in relation to the application of s 16 of the Defamation Act 1974 (NSW) (the predecessor of s 26 of the UDA) that the impugned matter was capable of conveying to the reasonable reader two imputations, "one being that the first plaintiff had committed five indecent assaults on very young children from a Sydney kindergarten in the last 10 months and the other that such a man must be a habitual molester of children". His Honour accepted that the two imputations had much in common but nevertheless were distinct imputations generated by the same matter.
24 The second authority was Hyndes v Nationwide News Pty Ltd [2011] NSWSC 633 in which the plaintiff had pleaded that the impugned article conveyed (relevantly) the imputation that "he had assisted officials of the Thai government to deal in illegal drugs by helping to lend them money". The defendant sought leave to amend the defence to plead the contextual imputation that "the plaintiff was willing to lend money to persons whom he believed to be drug dealers". McCallum J refused the amendment, saying:
[34] The difficulty with the proposed contextual imputation … is that it cannot arise at the same time as and in addition to the plaintiff's imputations. I accept that, as a matter of logic, it is possible for words to convey an act and, separately, a condition. In the present case, however, the condition in question (willingness to lend money to persons the plaintiff believed to be drug dealers) is necessarily implicit in the act identified in the plaintiff's imputations, and so is not a different meaning that arises from paragraph 14 of the matter complained of at the same time as those imputations.
[35] … [T]o say that a person helped to lend money to drug dealers and to say that he was willing to do so amounts essentially to the same thing. The proposed contextual imputation does no more than to identify a necessary or implicit element of the charge encapsulated in the plaintiff's imputations.
(Emphasis added)
25 The third authority was Bookbinder v Tebbit (1989) 1 WLR 640 in which the plaintiff (the leader of the majority party controlling a County Council) had complained of a statement by the defendant said to convey the imputation that he "had acted irresponsibly in squandering £50,000 of public money on printing statements supportive of nuclear free zones" on [the Council] stationery. In support of a defence of justification and fair comment on a matter of public interest, the defendant pleaded that his statements conveyed the meaning that the plaintiff had been guilty of irresponsible squandering of public funds. He supported this plea with particulars of other occasions of alleged squandering of public money by the Council under the leadership of the plaintiff. The Court of Appeal held that this plea should have been struck out on the basis that an imputation of unjustified expenditure of public funds on previous occasions did not arise from the impugned matter, at 651.
26 As is evident from these authorities and the others to which counsel referred, each case will turn on its own facts.
27 The third of the elements of the defence stated in Crosby v Kelly has also been the subject of consideration in the authorities. McColl JA explained in Fairfax Media v Kermode at [79] that:
[W]hen the tribunal of fact comes to the weighing exercise the contextual truth defence entails … it must be able to conclude that because of the substantial truth of the contextual imputations "the defamatory imputations" - that is to say the plaintiff's cause of action - do not further harm the plaintiff's reputation … [T]he focus is on comparing the defendant's contextual imputations with the plaintiff's cause of action.
28 This means that the "sting" in the pleaded imputations of contextual truth should exceed the "sting" of those imputations pleaded by the applicant: McMahon v John Fairfax Publications Pty Limited (No 3) [2012] NSWSC 196 in which McCallum J said at [19]:
… It may be accepted that the premise of the defence is the existence of some additional defamatory sting not sued on by the plaintiff. However, the defence does not compare imputation with imputation. The essence of the defence is to permit the defendants to put the plaintiff's imputations in their factual context according to the content of the whole of the article. The essence of the defence is that if, viewed in its factual context, the defamatory publication was true enough that no further harm to reputation was done by the particular imputations selected by the plaintiff, no remedy should lie.
29 In Abou-Lokmeh, McColl JA said at [29] that a "defence of contextual truth must defeat the whole defamatory matter of which the plaintiff complains, that is to say, all the plaintiff's stings or imputations. The tribunal of fact must be able to conclude that, because of the substantial truth of the contextual imputations, the defamatory imputations which constitute the plaintiff's cause of action do not further harm the plaintiff's reputation".
30 The authorities establish that, in making the assessment of whether, by reason of the substantial truth of the contextual imputations, the applicant did not suffer further harm by reason of his or her pleaded imputations, it is the combined effect of all of the established contextual imputations which is to be considered: Fairfax Media v Kermode at [79]. That is to say, the Court does not engage in a comparison of individual imputation against individual imputation: John Fairfax Publications Pty Ltd v Blake [2001] NSWCA 434, (2001) 53 NSWLR 541 at [4]-[6] per Spigelman CJ with whom Rolfe AJA agreed at [70]. In Sharp v Harbour Radio Pty Ltd (No 2) [2016] NSWSC 223 at [25], McCallum J referred to Blake and said that the Court is to consider whether, in the circumstances established by the evidence, the imputations on which the applicant has sued has not further injured his or her reputation. The pleaded particulars will give some indication of the matters which may be proved at trial, but the circumstance that the ultimate determination will depend on such an assessment indicates the appropriateness of the Court being particularly circumspect before striking out contextual imputations whose combined effect will have to be considered.
31 It has been said that the formulation of a contextual imputation requires some care to ensure the "facts, matters and circumstances that can be relied on to establish its truth bear a reasonable relationship both to the contextual imputation itself and to the published material relied on by the plaintiff": Fairfax Media Publications Pty Ltd v King [2015] NSWCA 172 at [42].
32 Finally, it is pertinent for present purposes to note the statement of McCallum J in McMahon at [22] that, because of the lack of certainty on a strike out application that the plaintiff will be able to establish that all of the pleaded defamatory meanings had been conveyed, the Court should take the defendant's case at its highest. This means that the Court should compare the pleaded imputations of contextual truth with the least serious of the plaintiff's pleaded imputations. See also Abou-Lokmeh at [28].