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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Citation Plc v Ellis Whittam Ltd [2012] EWHC 549 (QB) (14 March 2012) URL: http://www.bailii.org/ew/cases/EWHC/QB/2012/549.html Cite as: [2012] EWHC 549 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
____________________
Citation Plc |
Claimant |
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- and - |
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Ellis Whittam Ltd |
Defendant |
____________________
Jane Phillips (instructed by Robin Simons) for the Defendant
Hearing date: 2 March 2012
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Crown Copyright ©
Mr Justice Tugendhat :
"3.1 Citation's guarantee is not what they say it is… because Citation is self insured and not insured through a broker
3.1.1 It is unable to pay out on claims";
3.1.2 Further or alternatively to 3.1.1 above ".. it does not pay out on any claims";
3.2 "Citation does not have any qualified lawyers working for the company"; and
3.3 "With Citation you would not be dealing with employment law lawyers".
"5.1 The Claimant was unwilling or unable to pay out on claims made under its contracts with clients, and was accordingly guilty of mis-selling its products to clients or failing to provide them with what they were bargaining for;
5.2 The Claimant did not have any qualified lawyers working for it and accordingly provided advice to clients from inadequately qualified and/or incompetent employees or agents;
5.3 The Claimant thereby provided an inadequate and second-rate service to its clients, in particular as compared with the Defendant's, such that prospective clients should steer well clear of it".
"Pending disclosure and/or the provision of Further Information herein the Claimant is unable to give particulars of other publications of the said words or words substantially similar thereto to third parties within this jurisdiction, but in the meantime it invites the obvious inference that this was not an isolated incident. It will rely on such publications at trial in support of its claim for damages".
"8.1 The Claimant is able to pay out on claims made by clients under its advice guarantee scheme;
8.2 The Claimant does and would pay out such claims;
8.3 The Claimant does have qualified lawyers working for it;
8.4 The Claimant's clients do deal with suitably qualified advisors that include employment law lawyers".
"3 (1) In an action for slander of title, slander of goods or other malicious falsehood, it shall not be necessary to allege or prove special damage— (b) if the said words are calculated to cause pecuniary damage to the plaintiff in respect of any office, profession, calling, trade or business held or carried on by him at the time of the publication".
"10. In support of this averment the Claimant will say that the words were self evidently seriously damaging to the Claimant's good will, its ability to retain current clients and its ability to attract and win new clients. Whilst the Claimant does not believe it has suffered any loss or likely loss in respect of its relationship with R G Solicitors, it is likely to have suffered loss of business as a result of other similar publications (which as pleaded above it is to be inferred have also taken place) and is likely to suffer such loss in the future unless the defendant is restrained by injunction or offers adequate undertakings as to the future.
11. Unless restrained by injunction the defendant will continue to publish the said or similar falsehood defamatory statement of and concerning the Claimant and its business in support of this averment the Claimant will refer to and rely on the correspondence between the parties in which the defendant failed and refused to offer an unqualified undertaking not to publish the said statements in the future".
"8.1.1 The amount the Claimant's coverage under its 'advice guarantee scheme';
8.1.2 The amount of the Claimant's reserves to support its advice guarantee scheme;
8.1.3 The number of clients who have joined the advice guarantee scheme;
8.1.4 The number of the Claimant's clients who have made claims against the Claimant under its advice guarantee scheme and for how much".
i) Does the Claimant have an arguable case that it is to be inferred that there were publications of the said words, or substantially similar words, to third parties other than Ms Harris?ii) Does the Claimant have an arguable case for the grant of a permanent injunction at trial; and in any event
iii) Is this a real and substantial tort.
WHETHER THERE HAS BEEN ANY OTHER PUBLICATION
"… we do not find it possible to accept [the] submission that it is invariably necessary for the plaintiff to plead or allege verbatim the exact words of which he complains, provided, as stated by Denning LJ in Collins v. Jones, he sets them out with 'reasonable certainty' which is, in our judgment, the correct test.
It is important to bear in mind the purpose of a statement of claim. It is to enable the defendant to know the case that he has to meet so that he can properly plead his case, with the result that the issues are sufficiently defined to enable the appropriate questions for decision to be resolved. In a libel case the first question is whether the words are defamatory of the plaintiff, which depends on their meaning; unless the plaintiff succeeds on this fundamental issue, his action will fail. Next, a number of questions may arise on defences which the defendant may wish to raise, for example, a plea of justification, which depends on whether the words are true or false, and similarly mutatis mutandis in the case of a plea of fair comment.
This purpose will not be achieved unless the words are pleaded with sufficient particularity to enable the defendant not only to understand what it is that the plaintiff alleges that they meant, but also to enable him to decide whether they had that meaning and, if not, what other meaning they had or could have....
This is why there must in all cases be reasonable certainty as to the words complained of, or in the case of a quia timet injunction what words are threatened, and normally this will require the pleading of the actual words or words to the same effect. Only on this basis can the case proceed properly through the interlocutory and pleading stages to trial and then to the formulation of the questions to be put to the jury and a proper answer to them."
"31. … If a claimant does not know the name of the persons to whom publication was made, the court may, exceptionally, allow the claim to stand if it is unreasonable to require a claimant to identify the publishees, or the claim may be to allowed stand pending disclosure or the provision of further information by the defendant(s) which it is reasonable to suppose will identify the publishee concerned. However, it is clear that the court will only follow this course in either case where the claimant can show by uncontradicted evidence that publication by the defendant has taken place and that he has a good cause of action in defamation (see Best v Charter Medical of England Ltd [2001] EWCA Civ 1588 at [11] to [13]; Bareham v Huntingfield (Lord) 2 K.B. 193 C.A. and Russell v Stubbs [1913] 2 K.B. 200n). In the absence of such evidence, the claim is merely speculative. As Lord Justice Keene said in Best at [13]:
"I conclude that the exception to the normal rule [that a claimant must set out in the particulars of claim the name of the persons to whom the words were spoken, and the exact words used] only operates where the claimant can satisfy the court that he has a good cause of action, because there is credible evidence that the defendant on a particular occasion and to a particular person made a defamatory statement about him of a specified nature. Unless there is evidence that there is a good cause of action in defamation, an order for further information under Civil Procedure Rules Part 18 would indeed be a fishing expedition…". "
WHETHER THERE IS A CASE FOR A PERMANENT INJUNCTION
"74. Where a defamatory statement has received insignificant publication in this jurisdiction, but there is a threat or a real risk of wider publication, there may well be justification for pursuing proceedings in order to obtain an injunction against republication of the libel. We are not persuaded that such justification exists in the present case.
75. There seems no likelihood that Dow Jones will repeat their article in the form in which it was originally published. It has been removed from the web site and from the archive…
76. In these circumstances, if this litigation were to proceed and to culminate in judgment for the claimant, it seems to us unlikely that the court would be able, or prepared, to formulate and impose an injunction against repetition of the defamation in terms that would be of value to the claimant. We do not believe that a desire for this remedy has been what this action has been about, or that the possibility of obtaining an injunction justifies permitting this action to proceed."
"That the patent is valid, and that the Defendants have infringed it, is not in dispute, the question is whether there is any ground for an injunction. It does not follow that because a man has done a wrongful act an injunction will be granted against him, though he is liable to damages for the wrong. The Court of Chancery said, "Where a man threatens and intends to do a wrongful act, we will, before it is done, grant an injunction to prevent his doing it, and we will grant it where the act has been done and is likely to be repeated"—the jurisdiction is simply preventive…. Where a patent is infringed the patentee has a primâ facie case for an injunction, for it is to be presumed that an infringer intends to go on infringing, and that the patentee has a right to an injunction to prevent his doing so. ... In the present case the Defendants have infringed the patent, but we must look at all the circumstances to see whether there is any ground for inferring that they intend to continue to infringe it."
"Now an injunction is granted for prevention, and where there is no ground for apprehending the repetition of a wrongful act there is no ground for an injunction. It was pressed on us that the Defendants insisted on their having a right to do what they had done, but, looking at all the circumstances of the case, this foolish attempt to justify a past act does not raise any presumption that they intend to repeat it. The injunction therefore falls,…"
"There was also a claim for an injunction; that is standard form in a defamation action; though whether there is any real risk that a defendant will repeat the libel so justifying the grant of an injunction will vary greatly according to the circumstances of the case".
"I await your response to those points raised above. In the meantime, to give your client some comfort, I have instructed EW's commercial director to advise all EW's sales colleagues: (1) that so far as I am currently aware your client offers an 'indemnity' scheme to all its prospects/clients and that its advisers include some barristers and/or solicitors (non practicing); (3) [sic] that I currently have no knowledge that it is unable to pay out or does not pay out on valid claims under its scheme; and (4) that any untrue/defamatory statements made by any EW colleague would be against EW values, not permitted and treated by EW as a disciplinary matter".
"to use its reasonable endeavours to ensure that it will not …make any statements to the effect that [the Claimant] does not employ any employment law solicitors (non-practicing) or barristers or that clients of [the Claimant] never deal with employment law solicitors (non-practising) or barristers or that [the Claimant] never pays out on claims and/or is unable to pay out on any claims for as long as that remains to be the case. For the avoidance of doubt if it is or becomes the case that [the Claimant] does not employ employment law solicitors (non-practising) or barristers or that clients of [the Claimant] would not be dealing with employment law solicitors (non-practising) or barristers, or that [the Claimant] stops paying or does not pay out on claims or [the Claimant] becomes unable to pay out on claims [the Defendant] will be released from the relevant part of this undertaking".
"Today, Citation's lawyers have written to us to allege that an EW employee has told a Citation prospect the following;
1. that Citation are 'unable to pay out on claims'.
2. that Citation does not have qualified lawyers working for it
3. that the prospect would therefore not have qualified lawyers working for it; and that
4. Citation does 'not pay out on any claims'.
It goes without saying that we have denied these claims, although we have asked for further detail of the source and the prospect to whom these alleged comments were made.
So far as I am aware Citation offers a self funded (albeit non FSA registered/regulated) "indemnity" to its prospects/clients. I have no knowledge that it either is not able to pay our or does not pay out on valid claims under its scheme. So far as I know Citation does have some barristers and/or solicitors (non practicing) working for it and those advisers do deal with clients.
Please ensure that you do not make any statements about Citation as alleged above nor any other statements about it (nor any other competitors) that are or might be untrue/defamatory. Any such untrue/defamatory comments would be against EW values, place EW at risk of litigation and will therefore be treated by EW as a disciplinary matter…."
IS THERE A REAL AND SUBSTANTIAL TORT?
CONCLUSION