Downtex v Flatley

Downtex v Flatley

The defence of qualified privilege was unsustainable because the letters imputed insolvency and misconduct without objective justification, and there was no sufficient reciprocal interest between the defendants and the suppliers. The material relied upon did not warrant the publication, and the facts did not support the existence of a privileged occasion. The judge should have granted summary judgment for the claimants on the issue of qualified privilege.

Parties
Appellant/claimant: Downtex; Respondent/defendant: Flatley
Jurisdiction
England and Wales
Judgment Date
02 October 2003
Procedural Posture
Civil Appeal (defamation and Breach of Contract) / Appeal From Interlocutory Decision on Summary Disposal and Qualified Privilege
Outcome
Appeal allowed in part; summary judgment for first claimant (Downtex) on defamation and breach of contract; cross-appeal dismissed; second and third claimants' appeal dismissed with leave to discontinue.
Legal Topics
Qualified Privilege, Summary Judgment, Libel, Breach of Contract, Damages Assessment
Defamation Contract Law Civil Procedure Qualified Privilege Summary Judgment Libel Breach of Contract Damages Assessment

Case Brief

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Parties

Downtex

Appellant/claimant

Flatley

Respondent/defendant

Procedural Posture

Civil Appeal (defamation and Breach of Contract) / Appeal From Interlocutory Decision on Summary Disposal and Qualified Privilege

Legal Issues

  1. 1 Whether the defence of qualified privilege was available to the defendants for the publication of defamatory letters
  2. 2 Whether summary judgment should be granted to the claimants in defamation and breach of contract
  3. 3 Whether the letters referred unambiguously to the second and third claimants

Ratio Decidendi

The defence of qualified privilege was unsustainable because the letters imputed insolvency and misconduct without objective justification, and there was no sufficient reciprocal interest between the defendants and the suppliers. The material relied upon did not warrant the publication, and the facts did not support the existence of a privileged occasion. The judge should have granted summary judgment for the claimants on the issue of qualified privilege.

Court Disposition

Appeal allowed in part; summary judgment for first claimant (Downtex) on defamation and breach of contract; cross-appeal dismissed; second and third claimants' appeal dismissed with leave to discontinue.

Orders

  • Judgment for first claimant in libel (excluding anonymous letter and 19 June letter); damages to be assessed by judge without jury in London.
  • Judge to determine any application for apology or declaration of falsity and assess damages for breach of contract.