qualified privilege and PARAGRAPHS 36.9A TO 36.9C OF THE AMENDED DEFENCE
109 As has already been noted, Mr Rush did not seek to strike out the statutory defence of qualified privilege raised by Nationwide and Mr Moran in the Amended Defence. He accepted, though somewhat belatedly and apparently begrudgingly, that the qualified privilege defence is reasonably arguable. He did, however, apply to strike out three paragraphs - paragraphs 36.9A, 36.9B and 36.9C - on the basis that those paragraphs pleaded matters that are logically irrelevant to the defence of qualified privilege and therefore have no forensic purpose. In oral submissions, Mr Rush went so far as to submit that the paragraphs were an abuse of the process of the Court: cf. r 16.21(1)(f) of the Rules.
110 The key issue concerning paragraphs 36.9A to 36.9C hinges on the element of the defence of statutory qualified privilege that requires a defendant to prove that "the conduct of the defendant in publishing that matter is reasonable in the circumstances". The question, in short, is whether the objective truth of what was published is relevant to the question whether the conduct of the defendant was reasonable in the circumstances. If the answer to that question is "no", as Mr Rush contended, paragraphs 36.9A to 36.9C would appear to be logically irrelevant to the defence of qualified privilege. If the answer is "yes", as Nationwide and Mr Moran contended, the facts pleaded in paragraphs 36.9A to 36.9C may assist it in its defence and should not be struck out.
111 Before addressing that key question, it is necessary to provide some context. As has already been noted, paragraph 36 (and it's many subparagraphs) of the Amended Defence pleads the facts and circumstances that are said to have made the conduct of Nationwide and Mr Moran in publishing the matters complained of reasonable. Paragraph 36.6 states that prior to publishing the first and second matters complained of (the billboard and the articles in the 30 November 2017 edition of the Telegraph), Nationwide and Mr Moran had certain information. That information is set out in paragraphs (a) to (g) of paragraph 36.6. Paragraph 36.6A sets out the sources of the information in paragraphs 36.6(a) to (g). In similar fashion, paragraph 36.7 sets out the information that Nationwide and Mr Moran had prior to publishing the third matter complained of (the articles in the 1 December 2017 edition of the Telegraph) and paragraph 36.7A sets out the sources of that information. Paragraph 36.8 states that Nationwide and Mr Moran were reasonably satisfied about the sources of the information and the integrity, authenticity and accuracy of those sources. No complaint is made concerning those paragraphs of the Amended Defence.
112 Paragraph 36.9 of the Defence stated that Nationwide and Mr Moran "believed what it [sic] published to be true". The Amended Defence adds the words "specifically the matters set out in paragraphs 36.9A and 36.9C" between the words "published" and "to be true". Paragraph 36.9A, which was inserted in the Amended Defence, states as follows (omitting the underlining that appear in the document to identify the portions the subject of the amendment):
[T]he second matter complained of contained the following facts concerning the Applicant, each of which was a matter of substantial truth;
(a) the Applicant was an Oscar winning actor, having won the Academy Award for Best Actor in 1996 for his role as David Helfgott in the movie Shine;
(b) the Applicant was nominated an Oscar:
(i) in 1998 for in the Best Supporting Actor category for his role in Shakespeare in Love;
(ii) in 2000 for in the Best Actor category for his role in Quills;
(iii) in 2011 for in the Best Actor category for his role in The King's Speech;
(c) the Applicant has found fame being one of the few people to have won acting's triple crown - the Academy Award, the Primetime Emmy Award and the Tony Award;
(d) the Applicant was 66 years old and a married father of two;
(e) the Applicant is a Melbourne resident;
(f) the Applicant was the President of the Australian Academy of Cinema Television and Arts;
(g) the Applicant was expected to attend the annual AACTA Awards at The Star Event Centre the following week;
(h) the Applicant was one of the country's most successful actors;
(i) the Applicant had been accused of 'inappropriate behaviour' during the Sydney Theatre Company's production of King Lear;
(j) the Sydney Theatre Company had told The Daily Telegraph that it "received a complaint alleging that Mr Geoffrey Rush had engaged in inappropriate behaviour. The company received the complaint when Mr Rush's engagement with the company had ended. The company continues to work with the complainant to minimise the risk of future instances of the alleged behaviour occurring in its workplace. The complainant has requested that their identity be withheld. STC respects that request and for privacy reasons, will not be making any further comments";
(k) the Applicant, through his lawyers. vigorously denied the claims;
(l) the Applicant's lawyers, HWL Ebsworth, said:
(i) the Applicant had "not been approached by the Sydney Theatre Company, the alleged complainant nor any representative of either. Further, he has not been informed by them of the nature of the complaint and what it involves. If such a statement has been issued by the STC it is both irresponsible and highly damaging";
(ii) the Applicant's "regard, actions and treatment of all the people he has worked with has been impeccable beyond reproach"
(iii) that the Applicant had not been involved with the Sydney Theatre Company or its representatives for more than 22 months;
(iv) that the Daily Telegraph's understanding of what has occurred is fishing and unfounded and that "it does not warrant comment except that it is false and untrue";
(m) the local production of King Lear ran from November 2015 to January 2016 at the Roslyn Packer Theatre;
(n) there were several months of rehearsals;
(o) the Applicant has worked with the Sydney Theatre Company many times, both acting and directing productions like Uncle Vanya, Oleanna, The Importance of Being Ernest, You Can't Take It With You, King Lear and The Government Inspector;
113 The important point to note about paragraph 36.9A is that it includes two assertions concerning the information that is set out in paragraphs (a) through to (o). The first assertion is that the second matter complained of (the articles in the 30 November edition of the Telegraph) "contained" the "facts" in those paragraphs. The second contention is that each of the "facts" in paragraphs (a) to (o) "was a matter of substantial truth". It may be of significance that the word "facts" is used in paragraph 36.9A, rather than "information". That is in contrast to paragraphs 36.6 and 36.7 which state the "information" that Nationwide and Mr Moran possessed prior to publication.
114 Three further things should also be noted about paragraph 36.9A. First, the "facts" set out in paragraph 36.9A are far more extensive than, and do not precisely correspond with, the "information" which paragraphs 36.6 and 36.7 assert was possessed by Nationwide and Mr Moran prior to publication. Second, unlike with the information set out in paragraphs 36.6 and 36.7, the Amended Defence does not refer to the source of the facts in paragraph 36.9A. Third, while it is asserted that the "facts" in paragraphs (a) to (o) were matters of substantial truth, those facts are not relied on as particulars of truth in the context of the defence of justification.
115 Paragraph 36.9B states as follows (omitting the underlining that appear in the document to identify the portions the subject of the amendment):
[I]n support of the substantial truth of the matter set out in particular 36.9A(i), the Respondents rely upon the following facts, matters and circumstances:
(a) on 9 January 2016, following the incident referred to in paragraphs 23 and 23A above, Rachael Azzopardi, the Sydney Theatre Company's Director of Programming and Artistic Operations, witnessed the Complainant crying and approached her to see if she was okay. The Complainant told Ms Azzopardi, in substance, that she was not ready to talk about it.
(b) on around 1 April 2016, the Complainant contacted Ms Azzopardi and asked to arrange a meeting between the two of them.
(c) on around 4 April 2016, the Complainant met with Ms Azzopardi and told Ms Azzopardi about the Applicant's conduct towards her during the Production.
(d) on around 14 April 2016, a meeting was held between the Complainant, the Complainant's agent, Lisa Mann, the HR Manager of the Sydney Theatre Company, Kate Crisp, and another employee of the Sydney Theatre Company whose identity is presently unknown to the Respondents. At that meeting the Complainant made a complaint about the Applicant's conduct towards her during the Production.
(e) the substance of the complaint referred to in paragraphs (c) and (d) was that the Applicant had groped the Complainant "all over" during the Production.
(f) the Complainant stated at the meeting referred to in paragraph (d) that the main reason for her deciding to report the Applicant's conduct was to bring the matter to the attention to the Sydney Theatre Company in order to minimise the possibility of such an experience occurring again. The Complainant also advised the Sydney Theatre Company that she did not want the Applicant to be informed of the Complaint for fear of repercussions against the Complainant;
116 Three points should be noted about paragraph 36.9B. First, the facts pleaded in this paragraph are said to support the "substantial truth" of only one of the "facts" set out in paragraph 36.9A: the "fact" in paragraph 36.9B(i). Second, the source of the "facts" in paragraph 36.9B(a) to (f) is not provided in the Amended Defence. Third, it is not asserted in the Amended Defence that the information in paragraph 36.9B was known to or possessed by Nationwide or Mr Moran prior to publication.
117 Paragraph 36.9C is in similar terms to paragraph 36.9A, though it relates to "facts" contained in the third matter complained of (the articles in the 1 December 2017 edition of the Telegraph). It states as follows (omitting the underlining that appear in the document to identify the portions the subject of the amendment):
[T]he third matter complained of contained the following facts concerning the Applicant, each of which was a matter of substantial truth:
(a) two Sydney Theatre Company actors had spoken out in support of the Complainant, namely:
(i) Meyne Raoul Wyatt, an actor who also appeared in King Lear, had said he believed the allegations concerning the Applicant and had posted the following statement o[n] his Facebook page: "I was in the show. I believe whoever has come forward. It's time for Sydney Theatre Company and the industry in Australia and worldwide as a whole to make a stand on this behaviour!!!";
(ii) Brandon McClelland, an actor who has worked alongside the Complainant, had posted the following statement on his Twitter account: "It wasn't a misunderstanding. It wasn't a joke";
(b) the Applicant is one of Australia's biggest stars;
(c) the Applicant was continuing to vehemently deny the claims that he had inappropriately touched the Complainant during the stage production of King Lear;
(d) Brandon McClelland's tweet had been reposted by several other Sydney theatre actors;
(e) two sources from the Sydney Theatre Company had said that the company stood by the Complainant's claims;
(f) the two sources referred to in the preceding particular had both said that the Sydney Theatre Company would not work with the Applicant again, with one saying: "There is no chance. How could we work with him again? That question doesn't even need an answer. Another actor backed what she said ... we've taken this very seriously";
(g) the source referred to in the preceding particular had also defended not naming the Complainant, saying "It is not our story to tell";
(h) the Applicant had been told the identity of the Complainant in a telephone call with Sydney Theatre Company's Executive Director, Patrick Mcintyre, two weeks earlier;
(i) the Sydney Theatre Company had revised its HR policies to try to ensure it maintained a safe environment for staff;
(j) Patrick Mcintyre, the Executive Director of the Sydney Theatre Company had stated the following:
(i) that it was important actors felt safe to speak up and that he believed maintenance of confidentiality was key;
(ii) the Sydney Theatre Company had "reviewed policies and procedures in place and that includes educating actors when they come in to the company about our intolerance of inappropriate behaviour, who they should speak to and encouraging them to speak up";
(iii) the executive team at the Sydney Theatre Company had a duty of care to ensure all staff feel safe and respected in the workplace;
(iv) "This isn't about creating drama and blame but if everyone holds each other accountable, we create the kind of workplace we all want to be in";
(v) that it was a wide ranging issue for the industry to address in the wake of the Harvey Weinstein scandal;
(vi) "Many still view that speaking up comes with adverse repercussions. This is a trust issue that the industry needs to work towards resolving and the observance of confidentiality is key to this. If people don't trust us with their stories, they won't speak up"
(k) the Sydney Theatre Company had confirmed it had received a complaint by a staff member over allegations of inappropriate behaviour by the Applicant;
(l) an Actors Equity survey aimed at theatre actors had preliminary findings that 40% of respondents claimed they had directly experienced sexual harassment, bullying or misconduct;
(m) the Sydney Theatre Company production of King Lear ran from November 2015 to January 2016;
(n) the Applicant was 66 years old;
(o) the Applicant had stated the following:
(i) he had "immediately phoned and spoke to senior management" when he became aware of rumours there was a complaint;
(ii) "they refused to illuminate me with the details. I also asked why this information was being withheld, and why, according to standard theatre practice, the issue had not been raised with me during the production via stage management, the director, my fellow actors or anyone at management level. However, no response was forthcoming."
(p) the Applicant's lawyer. Nicholas Pullen of HWL Ebsworth, had stated the following:
(i) it was a "great disappointment" that the Sydney Theatre Company had "chosen to smear his name and unjustifiably damage his reputation. Not to afford a person their right to know what has been alleged against them, let alone not inform them of it but release such information to the public, is both a denial of natural justice and is not how our society operates";
(ii) that the Applicant "abhorred any form of maltreatement of any person";
(iii) "until there is the decency afforded to Mr Rush of what the 'inappropriate behaviour' actually is then there is nothing more than can be said at this stage";
(q) the Applicant had worked with the Sydney Theatre Company both acting and directing productions including Uncle Vanya, Oleanna, The Importance of Being Ernest and The Government Inspector;
(r) the Applicant's management had stated the following:
(i) that the Sydney Theatre Company had "chosen to smear his name and unjustifiably damage his reputation";
(ii) "his treatment of fellow colleagues and everyone he has worked with is always conducted with respect and the utmost propriety. The allegation made against Mr Rush comes from a statement provided by the Sydney Theatre Company";
(iii) that it is understood that the Sydney Theatre Company's statement concerned a complaint made more than 21 months previously;
(iv) "to date, Mr Rush or any of his representatives have not received any representations from the STC or the complainant. In other words, there has been no provision of any details, circumstances, allegations or events that can be meaningfully responded to";
(v) that Mr Rush reiterated that he denied being involved in any "inappropriate behaviour" whatsoever;
(s) the Sydney Theatre Company had stated the following:
(i) that it "was asked by a News Ltd journalist earlier this month whether it had received a complaint alleging inappropriate behaviour by Mr Rush while he was employed by the company. STC responded truthfully that it had received such a complaint";
(ii) that the Complainant had "requested the matter be dealt with confidentially, and did not want Mr Rush notified or involved" in any inquiry;
(iii) "STC complied, acting in the interest of the complainant's health and welfare. As already stated, the Company received the Complaint after Mr Rush's engagement had ended";
(t) the Applicant was the star of the Pirates of the Caribbean.
118 The points that were made in relation to paragraph 36.9A apply equally to paragraph 36.9C. There is, however, one additional point to note about paragraph 36.9C. That is, that there is no equivalent to paragraph 36.9B in respect of the "facts" pleaded in paragraph 36.9C: there is no paragraph that pleads the facts, matters or circumstances that are said to prove the substantial truth of any of the facts identified in paragraph 36.9C.
119 Paragraphs 36.10 to 36.15 plead additional facts that are said to be relevant to the reasonableness of the conduct of Nationwide and Mr Moran in publishing the relevant matters. They are not the subject of complaint.
120 As indicated earlier, Mr Rush contended that the objective truth or otherwise of the published statements is irrelevant to the defence of statutory qualified privilege. He relied, in support of that contention, on the decision of Hunt J at CL in Makim v John Fairfax & Sons Ltd (unreported, Supreme Court of New South Wales, Hunt J, 15 June 1990).
121 Makim primarily concerned whether the defendant was entitled to interrogate the plaintiff about certain matters, including matters that went only to the objective truth of what the defendant had published. The defendant sought to justify the interrogatories on the basis, inter alia, that they were relevant to its defence of qualified privilege under the Defamation Act 1974 (NSW). Section 22 of the 1974 Act provided a defence of qualified privilege if it was established, inter alia, that "the conduct of the publisher in publishing that matter is reasonable in the circumstances".
122 In that context, Hunt J said:
As a matter of principle, the objective truth or falsity of what was said is irrelevant to the defence of qualified privilege. That defence (whether statutory or common law) proceeds upon the basis that the defendant was honestly mistaken in what he said; the authorities are collected in Barbaro v Amalgamated Television Services Pty Ltd (1985) 1 NSWLR 30 at 41-22. What the defendant must establish in relation to the statutory defence is that he took all reasonable steps to ensure that he got his facts right - to ensure that the published statements were true: Austin v Mirror Newspapers Ltd (1985) 3 NSWLR 354 (PC) at 361, 363, 364. The defendant does not have to establish that they were objectively true in fact, and proof of such objective truth does not assist the defendant to establish that the steps which he took to ensure that truth were reasonable.
(Emphasis added.)
123 His Honour returned to that issue later, when he said:
A person's belief in the truth of a particular fact is not established by showing that objectively the fact is true. That belief in the truth may be honestly held even though there is in fact objectively no truth at all in what was said. The defendant's belief may be one engendered by carelessness, impulsiveness or irrationality. The defendant may hold that belief after being swayed by strong prejudice, or he may be obstinate and pigheaded, or stupid and obtuse in coming to the conclusion which he did. But if he nevertheless had an honest belief in the truth of what he said, the defendant will have established that particular ingredient of the defence of statutory qualified privilege, however objectively false that statement may be: Horrocks v Lowe [1975] AC 135 at 150-153.
What the defendant is entitled to do is to establish the matters upon which his belief was based. This is not done in order to show that his belief was a reasonable one, or that it was a belief that was based upon reasonable grounds, for that is never the test of the existence or non-existence of an honest belief: Clark v Molyneux (1877) 3 QBD 237 at 249. It is done simply to support the existence of his honest belief, by demonstrating what was present to the defendant's mind at the time of the publication and what led to the existence of that belief on his part.
(Emphasis added.)
124 Finally, his Honour said:
There is authority for the proposition that, in some circumstances, evidence that a particular fact published is false is relevant to a plaintiff's proof of the defendant's knowledge of that falsity: Rigby v Associated Newspapers Ltd (No 2) at 736. It could be so where the circumstances were such that knowledge of the falsity could be inferred from them: Uren v Australian Consolidated Press Ltd (1965) 66 SR 271 at 296. But, as Walsh JA said in the former case, the circumstances would have to be unusual. It is certainly very difficult to suggest an example other than a very unusual one where such knowledge could be inferred from the mere fact of falsity.
But the converse does not hold good, even in unusual circumstances. Where a defendant seeks to establish that he believed in the truth of a particular fact, the only thing which is relevant is the defendant's state of mind, and the circumstance that the fact turns out to have been true does not advance the proof of the defendant's belief in the truth of that fact. The question of privilege only arises where the defendant has failed to establish a defence of truth. As I said earlier, this defence proceeds upon the basis that the defence was honestly mistaken in what he published. What the defendant must establish is what was in his mind. If the defendant is a corporation, it must do so by showing what was in the mind of the relevant servant or agent who was responsible for composing the matter complained of; the authorities are collected in Bickel v John Fairfax and Sons Ltd [1981] 2 NSWLR 474 at 499. See also Austin v Mirror Newspapers Ltd at 363.
(Emphasis added.)
125 Hunt J's finding that the objective truth of the matters published was irrelevant to the statutory defence of qualified privilege was followed by Levine J in Sewell v National Australia Bank Ltd (unreported, Supreme Court of New South Wales, Levine J, 12 June 1997) and Alan Jones v John Fairfax Publications Pty Ltd [2002] NSWSC 1210 at [59]; and Anderson AUJ in Rayney v The State of Western Australia (No 2) [2009] WASC 133 at [21]-[23]. The latter case was decided under the Defamation Act 2005 (WA). Anderson AUJ struck out paragraphs of a reply on the basis that they related only to the objective truth or falsity of the defamatory material.
126 The position would appear to be much the same in the United Kingdom. In Flood v Times Newspapers Ltd [2012] UKSC 11; 2 AC 273; 4 All ER 913, a decision of the United Kingdom Supreme Court, Lord Mance SCJ referred to the defence of public interest privilege and said (at [122]):
Its basic elements are 'the public interest of the material and the conduct of the journalists at the time'. Whether the material is true is a 'neutral circumstance'. In contrast, whether at the time the relevant journalists believed it to be true is (other than in cases of purely neutral reportage of allegations) highly material when considering their conduct. See, on these points, Jameel v Wall Street Journal Europe SPRL at [62] per Lord Hoffmann.
127 Nationwide and Mr Moran relied on a decision of White J in this Court in Hockey v Fairfax Media Publications Pty Ltd (2015) 237 FCR 33. An issue arose in that case whether the objective truth of certain facts in the relevant publications was irrelevant to the publisher's defence of qualified privilege. The issue arose when objection was taken to questions put to the applicant, Mr Hockey, in cross-examination. His Honour deferred ruling on the objections and received the evidence on the basis that he would hear submissions in relation to the relevance of the evidence in final submissions. As events transpired, his Honour found that the publisher's conduct was not reasonable. He nevertheless ruled that the evidence was relevant. His Honour was referred to Makim, Jones, Rayney and Flood. His Honour found (at 331]), however, that the decision in Makim, "while persuasive, is no longer decisive of the question of whether proof of the objective truth of facts comprising, or contributing to, a defamatory imputation is admissible in support of a defence of qualified privilege".
128 His Honour's reasoning hinged primarily on the terms of s 30(3) of the Defamation Act, which provides as follows:
In determining for the purposes of subsection (1) whether the conduct of the defendant in publishing matter about a person is reasonable in the circumstances, a court may take into account:
(a) the extent to which the matter published is of public interest, and
(b) the extent to which the matter published relates to the performance of the public functions or activities of the person, and
(c) the seriousness of any defamatory imputation carried by the matter published, and
(d) the extent to which the matter published distinguishes between suspicions, allegations and proven facts, and
(e) whether it was in the public interest in the circumstances for the matter published to be published expeditiously, and
(f) the nature of the business environment in which the defendant operates, and
(g) the sources of the information in the matter published and the integrity of those sources, and
(h) whether the matter published contained the substance of the person's side of the story and, if not, whether a reasonable attempt was made by the defendant to obtain and publish a response from the person, and
(i) any other steps taken to verify the information in the matter published, and
(j) any other circumstances that the court considers relevant.
129 There was no equivalent provision in the 1974 Act at the time Hunt J decided Makim, though in 2002 the 1974 Act was amended to include s 22(2A), which was in relevantly the same terms as s 30(3) of the Defamation Act
130 White J reasoned as follows (at [328] to [330]).
It is appropriate to keep in mind that what the respondents must establish under s 30(1)(c) is not the reasonableness of the publication itself, but the reasonableness of their conduct in the circumstances in publishing the defamatory matter, ie, the defamatory imputations. Prima facie, this requires an objective assessment of the respondents' conduct at the time of publication in the circumstances then known.
Again, the authorities to which counsel for Mr Hockey referred are not necessarily determinative of the issues which arise under s 30 of the 2005 Act. That is because subs (3) appears to enlarge the range of matters to which the Court may have regard in determining the reasonableness of a defendant's conduct. In particular, it appears to indicate that courts may now have regard to matters going beyond the belief of the defendant in the truth of the defamatory imputation pleaded by a plaintiff, this being the principal consideration underpinning the reasoning of Hunt J in Makim. In addition to the listed matters, courts may have regard to any other matter which, considered objectively, may be relevant (subs (3)(j)).
If the Court may take these matters into account, the parties should be permitted to adduce evidence bearing on them. A defendant, in particular, should be able to put material before a court bearing upon its consideration of the matters enumerated in subs (3). As presently advised, I see no reason in principle why this may not, in some cases, include evidence establishing the objective truth of matters making out the defamatory imputation if, and to the extent to which, they bear on the Court's evaluation of the s 30(3) matters. In some cases, evidence of the objective truth of some facts may have a material bearing upon the extent to which the "matter published" is in the public interest (subpara (a)), or on the extent to which the matter published relates to the performance of public functions or activities of the plaintiff (subpara (b)), or on the seriousness of the defamatory imputation carried by the matter published (subpara (c)). Evidence may possibly assist in the evaluation of a defendant's investigation and attempts at verification if it demonstrates that there was no further information to be ascertained.
131 His Honour ultimately held that the evidence which had been objected to on the grounds of relevance was relevant to the Court's consideration of the matters arising under s 30(3)(a), (b) and (c).
132 Mr Rush submitted that Makim should be followed and that White J in Hockey was plainly wrong to distinguish Makim on the grounds that he did. Nationwide and Mr Moran, on the other hand, argued that White J was correct to distinguish Makim, that it is at least arguable that Makim should not be followed and that White J was correct in finding that the objective truth of what was published is not always irrelevant to the defence of qualified privilege.
133 In my view, however, the parties' submissions concerning Makim and Hockey mostly missed the point. The question whether paragraphs 36.9A, 36.9B and 36.9C of the Amended Defence should or should not be struck out is not answered by simply determining which of those two cases should be followed. The real issue, rather, is whether the objective truth of the matters pleaded in paragraphs 36.9A and 36.9C is reasonably capable of bearing upon the question whether the conduct of Nationwide and Mr Moran in publishing the matters complained of was reasonable in the circumstances. A subsidiary issue is whether paragraphs 36.9A to 36.9C otherwise fail to raise a reasonable defence, or are ambiguous or likely to cause prejudice, embarrassment or delay in the proceeding.
134 Before addressing those issues, in light of the detailed submissions that were advanced by the parties, the following points should be made concerning the decisions in Makim and Hockey.
135 First, neither Makim nor Hockey concerned the question whether parts of a pleading raising the defence of qualified privilege should be struck out. Makim concerned the question whether a defendant should be permitted to interrogate the plaintiff about the objective truth of some of the defamatory statements that had been published in the context of a defence of qualified privilege. Hockey concerned the admissibility of questions put to the plaintiff, Mr Hockey, in cross-examination that supposedly related to the objective truth of some of the published defamatory statements. The critical issue in both cases was the extent to which the objective truth of the relevant statements could bear on the question of whether the conduct of the defendant in publishing the matter complained of was reasonable in the circumstances.
136 Second, the reasoning of Hunt J in Makim primarily related to what is ordinarily the primary consideration in determining the reasonableness of the conduct of the publisher: whether the publisher believed and took all reasonable steps to ensure that what was published was true. The usual way that question is addressed is by the publisher pleading and providing particulars of the information that it possessed at the time the matter was published, the reasonableness of the sources of that information, and other steps that were taken to verify the truth and accuracy of the statements. In this case, those matters are pleaded at paragraphs 36.6, 36.6A, 36.7, 36.7A and 36.8 of the Amended Defence.
137 It was in that context that Hunt J stated that, as a matter of principle, the objective truth or falsity of what was said is irrelevant to the defence of qualified privilege and that proof of the objective truth does not assist the publisher to establish the reasonableness of the steps which were taken to ensure that what was published was true. The logic of Hunt J's reasoning cannot be doubted. It may perhaps be doubted, however, that Hunt J intended to lay down a concrete rule that the objective truth of the published statements can never be relevant to the reasonableness of the publisher's conduct in publishing, and can never be relevant to any issue that may arise in the context of the defence of qualified privilege.
138 Third, the defendant in Hockey did not seek to justify the relevance and admissibility of the questions concerning the objective truth of the relevant published statements on the basis that the evidence was relevant to the question whether it took reasonable steps to ensure that what was published was true. Rather, it was argued that the evidence was relevant because it went to the extent to which the matter published was of public interest and therefore fell within s 30(3)(a) of the Defamation Act. White J accepted that the evidence was relevant to that respect. His Honour also found that the evidence was relevant to the extent to which the matter published related to the performance of the public functions of Mr Hockey, and the seriousness of the defamatory imputations carried by the matter published, and therefore fell within s 30(3)(b) and (c) of the Defamation Act. White J did not question or query the reasoning of Hunt J in Makim to the effect that the objective truth does not assist the publisher to establish the reasonableness of the steps which were taken to ensure that what was published was true.
139 Fourth, while it is not a major point, I doubt that it is correct to say, as White J does at [329], that s 30(3) of the Defamation Act relevantly enlarged the range of matters to which the Court may have regard in determining the reasonableness of the defendant's conduct. All that s 30(3) does it to provide a non-exhaustive list of considerations that the Court may, not must, take into account in determining the reasonableness of the defendant's conduct. There is nothing to suggest that the Court could have not have had regard to those sorts of considerations when considering the reasonableness of the defendant's conduct for the purposes of s 22(1)(c) of the 1974 Act, even before the amendment in 2002 which inserted s 22(2A), if they were considered to be relevant to the reasonableness of the defendant's conduct. It was, for example, always open to the Court to have regard to the extent to which the matter published was of public interest if that relevantly bore on the reasonableness of the defendant's conduct.
140 Fifth, with the greatest respect to White J, I have some considerable difficulty seeing how the objective truth of what was published can be relevant to the reasonableness of the defendant's conduct for the purposes of a qualified privilege defence, even having regard to the range of matters in s 30(3). As Hunt J pointed out in Makim, the defence of qualified privilege proceeds on the basis that the relevant statements that were published were not true. If they were true, it is hard to see how the defendant would not have available to it a defence of justification, making a defence of qualified privilege largely unnecessary. The main question for determination in respect of the defence of qualified privilege is whether the defendant acted reasonably in publishing despite the fact that what was published turned out to be untrue.
141 It is equally difficult to see how the objective truth or falsity of the statements can have any real bearing on any of the s 30(3) matters.
142 In relation to s 30(3)(a), which appears to have provided the main basis for White J's finding that the disputed evidence in Hockey was relevant, it is hard to see how the objective truth of the statements published can bear on the extent to which the matter published is of public interest. The extent to which the matter published is of public interest will depend on the background context and nature and character of the subject matter of the publication, rather than the objective truth of what is published.
143 That appears to be reflected in the way the public interest of the matter published has been pleaded by Nationwide and Mr Moran. They allege that the matters complained of were published in the "background context" of widespread reporting in Australia and internationally of sexual misconduct, bullying and harassment in the entertainment industry, as well as the covering up of those allegations by the industry: paragraph 29 of the Amended Defence. The relevant subjects of the matters complained of are alleged to be the alleged misconduct of Mr Rush, an Oscar-winning Australian actor; the response of the Sydney Theatre Company to that alleged misconduct; Mr Rush's response to that allegation and the public support of the actress by Sydney Theatre Company actors: paragraphs 31 and 32 of the Amended Defence. Those subjects are alleged to be "matters of proper and legitimate public interest": paragraph 33 of the Amended Defence. Alternatively, it is alleged that the recipients of the matters complained of had an apparent interest in having information on those subjects because Nationwide and Mr Moran believed that the subjects were matters of proper and legitimate public interest: paragraph 34 of the Amended Defence.
144 Nationwide and Mr Moran do not provide any particulars of the basis upon which it is asserted that the subjects were matters of proper and legitimate public interest. Their case appears to be that this follows from the very nature and character of the subjects, perhaps considered in the context of earlier reporting of allegations of sexual misconduct in the entertainment industry. Nowhere in the Amended Defence is it contended that the public interest in the subjects arose from the objective truth of what was published. It is certainly not readily apparent from the pleading why the objective truth of what was published could have had any bearing on the extent of the public interest in the subjects.
145 It is equally not readily apparent how the objective truth of the matters published could have any bearing on the other s 30(3) matters.
146 In the case of s 30(3)(b), the matters published either relate to the performance of the public functions or activities of the person, or they do not. The objective truth or otherwise of the published statements is unlikely to bear on that issue. In this case, the extent to which the matters published relate to the performance of the public functions or activities of Mr Rush will be the same irrespective of the truth or otherwise of the published statements. Nationwide and Mr Moran contend, in paragraph 36.3 of the Amended Defence, that the matters complained of related to the alleged public activities of Mr Rush whilst performing in the theatre. They do not suggest that that allegation depends on the objective truth of what they published.
147 The truth or otherwise of the published statements are, on close analysis, also highly unlikely to bear on the matters referred to in s 30(3)(d), (e), (f), (g), (h) and (i). Nor is it expressly stated in the pleading that the objective truth of the statements bear on any of those matters. As for s 30(3)(c), if the published statements are objectively true, the defendant will most likely have a defence of justification open to it, and the seriousness or otherwise of the defamatory imputations is unlikely to be an issue.
148 It follows from what has just been said that I have some doubts about the correctness of some of White J's reasoning in Hockey. If I was required to decide whether to follow Makim or Hockey, I would be inclined to follow Makim. I do not consider, however, that I am required to make any such an election. As already noted, neither Makim nor Hockey concerned the striking out of particulars of a defence of qualified privilege. Hockey relevantly concerned the admissibility of evidence. I have no reason to doubt that White J was correct, in the particular and possibly unique circumstances of that case, in admitted the challenged evidence. I also accept, as White J effectively found, that Makim and the cases that have followed it are not necessarily determinative of whether the objective truth of the statements published can ever be relevant to a defence of qualified privilege. That is because Makim primarily concerned whether the objective truth of the statement could be relevant to the question whether the publisher reasonably believed that what it published was true. Hunt J did not specifically address the types of considerations that are now in s 30(3) of the Defamation Act. Nevertheless, the force and logic of Hunt J's reasoning remains. It is difficult to see how the objective truth of what was published can be relevant to the reasonableness of the publisher's conduct for the purposes of the defence of qualified privilege, even having regard to the list of possible considerations in s 30(3).
149 In any event, as has already been said, the important question here is not so much whether the reasoning in Makim or Hockey should be followed, but whether it is at least reasonably arguable that the objective truth of the facts or matters pleaded in paragraphs 36.9A and 36.9C can relevantly bear on the reasonableness of the conduct of Nationwide and Mr Moran in publishing the matters complained of. In that regard it is important to emphasise that in Hockey, the defendant sought to justify the receipt of the evidence relating to the objective truth of some of the matters published by reference to a specific paragraph or paragraphs of s 30(3). No such attempt was made by Nationwide and Mr Moran in this case. They did not submit, for example, that the objective truth of the "facts" pleaded in paragraphs 36.9A and 36.9C was relevant to determining the extent to which the matter published was of public interest for the purposes of s 30(3)(a). Nor was there any specific reference to any of the other s 30(3) matters.
150 Nor is the relevance of the objective truth of the facts and matters pleaded in paragraphs 36.9A and 36.9C readily apparent from the pleading itself. It should also be noted in that context that paragraphs 36.1 to 36.8 and 36.10 to 36.15 specifically advert to the considerations in listed in s 30(3). That is not the case in respect of 36.9A to 36.9C.
151 The question remains, then, what is the possible relevance of the matters pleaded in paragraphs 36.9A and 36.9C to Nationwide and Mr Moran's defence of qualified privilege? Can it be said that the objective proof of any of the facts pleaded in those paragraphs can or might bear on the reasonableness of the conduct of Nationwide and Mr Moran in publishing the matters complained of?
152 Upon close analysis of those paragraphs, the short answer to that question is "no". Moreover, paragraphs 36.9A to 36.9C are ambiguous, appear to repeat other parts of the pleading and lack appropriate clarity. It is difficult to see how they relate to or interact with the other parts of the pleading concerning the defence of qualified privilege.
153 As for the "facts" pleaded on paragraph 36.9A, it can readily be accepted that if Nationwide and Mr Moran were in possession of information concerning the matters referred to in paragraphs 36.9A(a) to (o) at the time of publication, and had obtained that information from apparently reputable and reliable sources, that could well be relevant to assessing the reasonableness of their conduct in publishing the second matter complained of. It is, however, unclear why the objective truth or otherwise of those matters could have a bearing on the assessment of the reasonableness of the conduct of Nationwide and Mr Moran. It is equally unclear why this information is pleaded separately to the information pleaded in paragraph 36.6 of the Amended Defence, and why there is no equivalent paragraph to paragraph 36.6A in respect of the information in paragraph 36.9A. There is no indication of the source or sources of the facts referred to in paragraph 36.9A, other than in those cases where the source is implicit in the fact itself: see for example paragraph 36.9A(j).
154 It would appear that the objective truth of many of the facts pleaded in paragraph 36.9A is unlikely to be in issue: see in particular paragraphs 36.9A(a) to (h) and (m) to (o). What is entirely unclear, however, is why the fact that the second matter complained of included those facts, and more particularly the objective truth of those facts, could have any bearing on the reasonableness of the conduct of Nationwide and Mr Moran in publishing the matter. It is also unlikely that the objective truth of the facts pleaded in paragraphs 36.9A(k) and (l) will be in issue. Those facts are relevant to whether the matter published contained the substance of Mr Rush's side of the story: s 30(3)(h). That very matter, however, is specifically addressed in paragraphs 36.12A to 36.14 of the Amended Defence. It is unclear what paragraphs 36.9A(k) and (l) add to what is already pleaded in paragraphs 36.12A to 36.14 and, more significantly, why the objective truth of the facts referred to in 36.9A(k) and (l) is also said to be relevant.
155 That leaves the somewhat more contentious paragraphs 36.9A(i) and (j). What is unusual about those paragraphs is that the facts or information referred to in them are already the subject of paragraphs 36.6(a1) and (b). Paragraph 36.6A(b) specifies the source of that information. The fact that Nationwide and Mr Moran obtained that information from a source who they contend was reputable and reliable is plainly relevant to the reasonableness of their conduct. That is no doubt why Mr Rush has not applied to strike out 36.6(a1) and (b). What is entirely unclear, however, is why that information is repeated in 36.9A(i) and (j), without any reference to the source of that information, and more significantly why the objective truth of that information is relevant to the reasonableness of the conduct of Nationwide and Mr Moran in publishing the matter complained of.
156 As has already been noted, Nationwide and Mr Moran did not even attempt to demonstrate, how the objective truth of the facts pleaded in paragraph 36.9A, or the fact that the first matter complained of contained those facts, bore on any of the s 30(3) matters or, more particularly, the reasonableness of their conduct for the purposes of their defence of qualified privilege. The relevance of the objective truth of the facts referred to in paragraph 36.9A is not readily apparent from the pleading itself. And has already been explained, while it may be relevant that Nationwide and Mr Rush possessed some of the information referred to in paragraph 36.9A at the time of publication, and obtained it from identified sources, those matters are pleaded elsewhere in the Amended Defence in any event.
157 In all the circumstances, I am satisfied that the facts and matters pleaded in paragraph 36.9A do not disclose a reasonable defence.
158 I should note that I have given some consideration to whether it would be sufficient to simply srike out the words "each of which was a matter of substantial truth" as they appear in paragraph 36.9A. If that was done, however, that would mean that paragraph 36.9A would simply read as a list of "facts" contained in the relevant articles. That itself would not be capable of disclosing a reasonable defence. Paragraph 36.9 does now include the words "specifically the matters set out in paragraphs 36.9A and 36.9C below". Those words, however, do not meaningfully add to the broader contention in paragraph 36.9 that Nationwide and Mr Moran believed all of what they published to be true. It should also be noted that no particulars are provided in relation to the contention that Nationwide and Mr Moran believed that the "facts" in paragraph 36.9A to be true.
159 I am also satisfied that paragraph 36.9A is ambiguous and is likely to cause embarrassment, prejudice or delay in the proceeding. The embarrassment and prejudice flows from the ambiguity and lack of clarity and apparent relevance of the matters pleaded in the paragraph. It is, in short, not possible to discern the relevance of the matters pleaded in paragraph 36.9A and how they intersect with or relate to the other paragraphs of the Amended Defence which plead and particularise the defence of qualified privilege in a more conventional and comprehensible way.
160 Prejudice and delay is also likely to flow from the fact that, if permitted to plead the objective truth of the matters in paragraphs 36.9A, Nationwide and Mr Moran will no doubt attempt to prove the truth of the matters pleaded at trial. If the paragraphs are permitted to stand, there will be a collateral inquiry into the truth of the statements made in the relevant publications in circumstances where, for the reasons already given, it is at best unclear how and why the objective proof of the statements is relevant to the reasonableness of the conduct in publishing and the defence of qualified privilege. For the reasons already given, the defence of justification currently pleaded by Nationwide and Mr Moran is to be struck out. An inquiry into the objective truth of the published statements cannot be justified by reference to that defence.
161 Nationwide and Mr Moran may also attempt to utilise the Court's processes to obtain evidence to prove the truth of the matters pleaded in paragraph 36.9A. Indeed, they have already endeavoured to do so by having the Court issue a subpoena directed to the Sydney Theatre Company. That should not be permitted in circumstances where they have not demonstrated, in clear terms, how and why proof of the truth of the facts pleaded in paragraphs 36.9A can or might advance their defence of qualified privilege. Mr Rush went so far as to submit that paragraphs 36.9A to 36.9C were included for the purpose of justifying the subpoena and that they were therefore an abuse of process. I doubt that it is open to infer that the paragraphs were included for that purpose. Nor is it necessary to go that far. For the reasons given later in the context of the subpoena to the Sydney Theatre Company, it would be an abuse of process for Nationwide and Mr Moran to utilise the Court's compulsory processes to undertake a "fishing expedition" in the hope of finding something that might provide it with a defence, particularly if no proper basis for that defence has been demonstrated.
162 For all those reasons it is appropriate to strike out paragraph 36.9A pursuant to r 16.21 of the Rules.
163 Paragraph 36.9B pleads certain facts that are said to substantial truth of paragraph 36.9A(i). As already noted, it is unclear why the substantial truth of the fact pleaded in that paragraph is relevant to the reasonableness of the conduct of Nationwide and Mr Moran. It is also unclear whether the facts pleaded in paragraph 36.9B were known to Nationwide and Mr Moran at the time of publication, and unclear what the source of the information was. Neither of those matters is pleaded. In any event, paragraph 36.9B must be struck out in circumstances where paragraph 36.9A is to be struck out. I am satisfied that paragraph 36.9B does not disclose a reasonable defence, is ambiguous and is likely to cause embarrassment, prejudice or delay in the proceeding.
164 Paragraph 36.9C has the same problems and deficiencies as paragraph 36.9A. It is at best unclear how the objective truth of the "facts" detailed in paragraphs 36.9C(a) to (t), or the fact that the third matter complained of contained those facts, bears at all on the issue of the reasonableness of the conduct of Nationwide and Mr Moran. Some of the facts referred to in paragraph 36.9C appear to repeat or expand upon the facts already pleaded in paragraph 36.7. As already noted, paragraph 36.7 details the information that was possessed by Nationwide and Mr Moran at the time of the publication of the third matter complained of. The sources of that information are pleaded in paragraph 36.7A. It may again be accepted that the fact that Nationwide and Mr Moran possessed certain information at the time of publication, and obtained that information from identified sources who are said to be reliable, may be relevant to the reasonableness of their conduct in publishing. It is, however, unclear why that information is repeated or expanded in paragraph 36.9C, or why the objective truth of that information bears on the reasonableness of Nationwide and Mr Moran.
165 To the extent that paragraph 36.9C refers to facts additional to those pleaded in paragraph 36.7, the sources of that information are not pleaded. Some of the facts referred to in paragraph 36.9C would also appear to be relevant to the reasonableness of the conduct of Nationwide and Mr Moran having regard to s 30(3)(h) (whether the matter published contained the substance of the person's side of the story), but those facts are pleaded in any event in paragraphs 36.12A to 36.14. It is unclear why the repetition is necessary.
166 In all the circumstances, for effectively the same reasons as those given earlier in relation to paragraph 36.9A, I am satisfied that paragraph 36.9C does not disclose a reasonable defence. I am also satisfied that paragraph 36.9C is ambiguous and is likely to cause embarrassment, prejudice or delay in the proceeding. It is accordingly appropriate to strike it out pursuant to r 16.21 of the Rules.
167 The words "specifically the matters set out in paragraphs 36.9A and 36.9C below" as they appear in paragraph 36.9 of the Amended Defence should also be struck out.
168 I am again mindful of the care and caution that must generally be exercised when striking out parts of a pleading. I note, however, that striking out paragraphs 36.9A to 36.9C of the Amended Defence does not deny Nationwide and Mr Moran the opportunity to raise a defence of qualified privilege at the trial. The balance of their defence of qualified privilege remains. As has already been said, many of the facts pleaded in paragraphs 36.9A to 36.9C are already referred to in some way or another elsewhere in the pleading, as information that Nationwide and Mr Moran possessed at the time of publication and believed, based on the reliability of the sources, to be true. All that has been struck out is paragraphs that are unclear and ambiguous and raise matters that are not apparently relevant to the reasonableness of the conduct of Nationwide and Mr Moran or the availability of the defence of qualified privilege more generally.