REA Group Limited v Fairfax Media Limited (No 3) [2018] FCA 633

REA Group Limited v Fairfax Media Limited (No 3) [2018] FCA 633

Fairfax Media Limited was guilty of contempt in respect of publication of the Print Advertisement, as it failed to act with reasonable diligence or use best endeavours, making the breach deliberate or voluntary; however, it was not guilty regarding the Billboard Advertisement, as it had taken sufficient reasonable steps and the breach resulted from an error by a third party beyond its control. A modest penalty and indemnity costs were appropriate due to the circumstances and mitigating factors.

Parties
Applicant: REA Group Limited; Respondent: Fairfax Media Limited
Jurisdiction
Australia
Judgment Date
07 May 2018
Procedural Posture
Contempt of Court Proceeding / Judgment on Liability, Penalty and Costs
Outcome
Finding of contempt in relation to the Print Advertisement; no contempt in relation to the Billboard Advertisement.
Legal Topics
Breach of Undertaking, Penalties for Contempt, Costs in Contempt Proceedings, Competition Between Media Companies, Interlocutory Relief
Contempt of Court Commercial Law Breach of Undertaking Penalties for Contempt Costs in Contempt Proceedings Competition Between Media Companies Interlocutory Relief

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Parties

REA Group Limited

Applicant

Fairfax Media Limited

Respondent

Procedural Posture

Contempt of Court Proceeding / Judgment on Liability, Penalty and Costs

Legal Issues

  1. 1 Whether Fairfax Media Limited's publication constituted contempt of court by breaching an undertaking not to publish certain phrases
  2. 2 Whether the breach was casual, accidental, or unintentional or resulted from lack of diligence
  3. 3 Appropriate penalty for contempt

Ratio Decidendi

Fairfax Media Limited was guilty of contempt in respect of publication of the Print Advertisement, as it failed to act with reasonable diligence or use best endeavours, making the breach deliberate or voluntary; however, it was not guilty regarding the Billboard Advertisement, as it had taken sufficient reasonable steps and the breach resulted from an error by a third party beyond its control. A modest penalty and indemnity costs were appropriate due to the circumstances and mitigating factors.

Court Disposition

Finding of contempt in relation to the Print Advertisement; no contempt in relation to the Billboard Advertisement.

Orders

  • Declaration that Fairfax Media Limited is guilty of contempt by publishing the Print Advertisement contrary to its undertaking.
  • The Respondent (Fairfax) pay a fine of $15,000 to the Registrar of the Federal Court of Australia within 28 days.