Defamation Bill

Lord McNally Excerpts

Tuesday 5th February 2013 Lords Chamber

Moved by

[Lord McNally]

12: Clause 5, page 3, line 32, at beginning insert “Subject to any provision made by virtue of subsection (6A),”

--- Later in debate ---

Moved by

[Lord McNally]

15: Clause 5, page 3, line 37, at end insert—
“(6A) Regulations may make provision about the circumstances in which a notice which is not a notice of complaint is to be treated as a notice of complaint for the purposes of this section or any provision made under it.”

--- Later in debate ---

[Lord Lucas]

My Lords, I was hoping to get some explanation of Amendment 15 as we have not debated it. I rather wonder why it was moved formally.

[The Minister of State, Ministry of Justice (Lord McNally)]

Because we want to get home before 3 am.

[Lord Lucas]

Well, let me delay things a little—but not for long.

We have had a long debate and a great deal of discussion about this but it appears to me that the regulations as they are will not allow the Government to give website operators, such as myself and others, the comfort we need to be able to keep postings in place when we are challenged as to whether they should be and we think that they are fair comment. We need some way of discovering whether the law is on our side or against us. The amendment is intended to allow the Government to frame regulations that would give us that comfort and allow us to allow others freedom of speech. I beg to move.

--- Later in debate ---

Moved by

[Lord McNally]

17: Clause 5, page 3, line 44, at end insert—
“(9A) The defence under this section is defeated if the claimant shows that the operator of the website has acted with malice in relation to the posting of the statement concerned.”

--- Later in debate ---

Moved by

[Lord McNally]

18: Clause 6, page 4, line 4, after “journal” insert “(whether published in electronic form or otherwise)”

[Lord McNally]

I note what my noble friend said. I remind him of the very thorough examination that we gave to Clause 5 in Committee, but I take his strictures; I will stay as long as he likes.

During discussion in Committee on amendments tabled by the noble Lord, Lord Hunt of Chesterton, relating to the defence under Clause 6 for peer-reviewed material in scientific and academic journals, uncertainty arose as to whether the reference to journals in Clause 6 includes journals published in electronic form. As I indicated in my response to the amendment of the noble Lord, Lord Hunt, it does. However, to avoid any uncertainty on the point and to ensure that the position is clear, Amendment 18 confirms that that is the case.

I have had helpful discussions with the noble Lord, Lord Hunt, and the noble Lord, Lord May, who unfortunately cannot be with us today, on the amendments that the noble Lord tabled in Committee. In the light of that discussion I would like to make clear, for the avoidance of doubt, that the term, “scientific and academic journals” embraces journals in the very important fields of engineering and medicine and that any peer-reviewed material published by scientific and academic bodies in the form of a journal, whether electronic or otherwise, is covered by the clause.

We think it right that the defence under Clause 6 should be carefully controlled and not extended to discussion on scientific or academic issues more generally. However, we are confident that, in addition to the specific protection provided by the clause, other provisions in the Bill, such as the serious harm test in Clause 1 and the public interest defence in Clause 4, will provide more effective protection of the scientific and academic debate, as well as encouraging freedom of expression in other areas. I beg to move.

[Lord Hunt of Chesterton]

I thank the Minister for his remarks. I support the amendment. I just want to explain that there are important organisations in, for example, engineering and medicine. I trained as an engineer and had discussion with the Institution of Civil Engineers and the Institution of Mechanical Engineers. They have electronic journals, which are used for highly peer-reviewed discussion of important technical issues. Similarly, there are in medicine. The way that the Minister has explained the application of the law will be very useful for those organisations which currently have to spend significant time and money on legal clarification before they publish technical commentary on current issues. That will be useful for many professional bodies, including academic bodies. I warmly welcome the Minister’s remarks and the amendment.

--- Later in debate ---

Moved by

[Lord McNally]

19: Clause 7, page 5, line 39, at end insert “or its auditors”

--- Later in debate ---

[Lord McNally]

My Lords, Amendment 19 relates to an issue raised in Committee by my noble friend Lord Phillips of Sudbury. The Defamation Act 1996 gives a defence of qualified privilege to fair and accurate reports of proceedings at a general meeting of a UK public company, and to copies of and extracts from various documents circulated to members of such a company. Clause 7(7) extends this protection more widely to cover reports in relation to companies listed on recognised stock exchanges worldwide and to summaries of such material. This includes material,

“circulated to members of a listed company which relates to the appointment, resignation, retirement or dismissal of directors of the company”.

Amendment 19 would, in addition, extend qualified privilege to material relating to the appointment, resignation, retirement or dismissal of the company’s auditors. When my noble friend raised this issue in Grand Committee, it was suggested that the existing provisions of Clause 7(7) might already cover it. We considered that in circumstances where this information was contained in documents circulated to members of a company by or with the authority of the board of directors or by the auditors, it would be covered by paragraph 13(2) of Schedule 1 to the 1996 Act. However, circumstances where the information was published without the authority of the board of directors would not be covered so, on reflection, we consider it desirable to extend the provision to cover these additional situations. This would be in line with the more general government policy to increase the transparency of interactions between companies and their auditors. I am grateful to my noble friend for his suggestion in this respect and I beg to move this amendment.

[Lord Phillips of Sudbury]

My Lords, I am grateful for the amendment.

--- Later in debate ---

[Lord McNally]

Perhaps I may try to deal immediately with the intervention of the noble Lord, Lord Prescott. I am not quite clear which committee received this evidence.

[Lord Prescott]

It was the Joint Committee on Privacy and Injunctions chaired by Mr Whittingdale.

[Lord McNally]

The noble Lord will know that we recently set up a Joint Committee on Parliamentary Privilege. To a certain extent, I am flying blind but I certainly think that his point should be drawn to the attention of that committee. I am a member of the Privileges Committee of this House and I will draw his remarks to that committee’s attention as well. It is a very difficult area. As he said, we have had one or two examples of honourable Members and noble Lords pushing the envelope as regards parliamentary privilege, which is one of the reasons why the Joint Committee was set up. I believe that this is the first example of a member of the public abusing it in that way. The noble Lord’s remarks certainly should be looked at by both committees.

As regards the eagle eye of the noble Lord, Lord Phillips, and possible contradictions, perhaps I may consult the parliamentary draftsmen on whether he is right. We still have time before Third Reading to iron out any wrinkles that he or others have spotted.

On the central issue raised by the noble Lord, Lord Browne, I will try again to see whether he is any more satisfied. As he explained, the amendment is at least in part an attempt to codify the defence of innocent dissemination. We explained in Committee, and previously in the other place, the Government’s concern about a provision such as this, which requires the court, as part of an assessment on jurisdiction, to assess at least to some extent the merits of the case before it. We think that such an approach has the potential to be unnecessarily confusing.

However, I will focus my response on the substantive issue at hand here—the defence of innocent dissemination. We have acknowledged the debate that exists over the terms of Section 1 of the 1996 Act and how this compares to the common law defence. During the Committee stage the noble Lord, Lord Browne, asked me to be “more courageous” in articulating how the Government saw Section 1 and the common law interrelating. When this House was considering what became Section 1 of the 1996 Act in Committee, my noble and learned friend Lord Mackay of Clashfern, the Lord Chancellor at the time, indicated that the Act would “supersede” and “replace and modernise” the existing law. There was debate at the time as to quite what the test for innocent dissemination was and whether Section 1 properly captured it. The Government of the day took the view that it did but the debate continues.

Under Section 1, a secondary publisher is at risk of liability once it is put on notice that a statement is defamatory. It is argued that, at common law, the secondary publisher retains the innocent dissemination defence provided it honestly and reasonably believes that a defence is available in respect of that publication. Carter-Ruck on Libel and Privacy describes the Section 1 defence as generally being more generous to secondary publishers. On this issue, however, it suggests that while the position is not without doubt, the better view is that the Section 1 defence is more easily lost than innocent dissemination at common law. Gatley on Libel and Slander takes the view that it is “possible” that the statutory defence is narrower than the common law in this respect.

The Government’s view is that it is right to say that Section 1 has, in effect, superseded the common law defence of innocent dissemination. As I have tried to illustrate, the position at common law prior to the 1996 Act was not as clear as certain lobby groups would like to suggest. We could have explored the option of extending the Section 1 defence but, as with Clause 5, the Government have taken the view that the better approach is to remove the secondary publisher from the process.

We believe that the approach that we have adopted in Clause 10 will provide effective additional protection for secondary publishers such as booksellers. It is consistent with the approach that we have taken elsewhere in the Bill in that the focus is on directing the claimant towards those who are actually responsible for the defamatory material. In the unlikely event that it is not reasonably practicable to sue the author, editor or publisher, Clause 10 allows a claimant to bring an action against a secondary publisher such as a bookseller. However, nothing in the clause would then prevent that bookseller from deploying any defences that may be available to him. We believe that this is a proportionate approach that is fair to all those concerned.

I will say in addition that in my discussions and evidence regarding the point that the noble Lord, Lord Browne, made about the intimidation of booksellers, the sending of a letter on high-quality, posh paper represents a kind of bullying. I hope that this clause and what I have said will give booksellers the protection to resist that and that they can use the protections in the Bill against such intimidation. I have tried to be as candid and clear as I can to the noble Lord about our approach to this. Whether it is courageous enough, I do not know.

[Lord Browne of Ladyton]

My Lords, I am grateful to the Minister for engaging with the spirit of the amendment, to the noble Lord, Lord Phillips, for engaging with its detail, and to my noble friend Lord Prescott for seeking the opportunity that it provided for him to exercise another issue. I hope he is satisfied that he has raised an important and serious issue. It is to be hoped that the broader consultation and debate on privilege that the Government are undertaking will deal with that among other things. We certainly should not have a situation where, by our own actions, we defeat the law that we pass.

On this occasion, I say with respect that the Minister has engaged more with the detail of the argument than he has done before. I think that he appreciates that. He and I have been partial in our quotation of the noble and learned Lord, Lord Mackay of Clashfern, from when, as Lord Chancellor, he introduced the 1996 Defamation Bill to this House. There are other quotations from the noble and learned Lord that I could play into the debate, which might get us back to the situation that we were in not so long ago in our deliberations on Report—quotations from the same judge that could be used to support two different sides of the argument. However, I have no intention of trying to replicate that interesting Alice in Wonderland environment that lawyers can sometimes create.

The Minister has probably been more courageous on this occasion. As regards the Booksellers Association, I accept what the noble Lord, Lord Phillips, said—that this provision applies to other secondary publishers, although I might say in passing that I am not sure that his interpretation of Amendment 17 is correct. However, we will perhaps return to that. I hope that booksellers will be satisfied. I have enormous sympathy for this group of people, who are at the mercy of a collision between two others. They are—if I may say so with respect to website operators—less culpable or less engaged in that process than perhaps website operators could be. There are some website operators whose very business plan encourages them to go to the margins and sometimes beyond the limits of what is allowed without remarks being deemed defamatory. Booksellers are not in that situation. They are one of many groups of people whom we are trying to improve and clarify the law to support.

I shall go back to those whom I have been engaged with to see whether they are satisfied, but, at the very least, we should strive with this Bill to put them in the position that they were in with the defence of innocent dissemination. I think that they will be comforted by the fact that the Minister has made it clear that it was his aim with this—I might say, although it does not sound like it—very welcome provision to codify that defence among other things. They are generally very pleased with the provision but would like it to be perfect—but then would not we all? In those circumstances, I beg leave to withdraw the amendment.

--- Later in debate ---

Moved by

[Lord Ahmad of Wimbledon]

22: Clause 13, page 9, line 5, at end insert “, or
(b) any person who was not the author, editor or publisher of the defamatory statement to stop distributing, selling or exhibiting material containing the statement.(1A) In this section “author”, “editor” and “publisher” have the same meaning as in section 1 of the Defamation Act 1996.”

--- Later in debate ---

[Lord Browne of Ladyton]

My Lords, the effect of Amendment 23 would be to disapply the Legal Aid, Sentencing and Punishment of Offenders Act in relation to defamation claims. The roots of this debate go back some time.

The roots of this debate go back some time. The Minister will be very familiar with his contribution to the debate on Legal Aid, Sentencing and Punishment of Offenders Bill on 27 March 2012, when he gave an assurance to the House on the issue of the disapplication of LASPO, as it has become known, and that in relation to defamation claims it would be dealt with in the context of the Defamation Bill. Repeatedly, our party has sought to persuade the Government that the appropriate way in which to live up the assurance given by the Minister was simply to disapply the provisions of LASPO to defamation claims in the Defamation Bill. However, there have been a number of developments. Since we last tried unsuccessfully in the Grand Committee to persuade the Minister to do that, there has been a commencement provision of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, which has a saving provision in it in relation to publication and privacy proceedings, defined in the commencement order as including defamation. So far, so good. However, there is still the possibility that a further commencement order may be made at some time in the future to commence the provisions of Sections 44 and 46 of the said Act in relation to publication and privacy proceedings.

The amendment provides the Minister with the opportunity to finish speculation about that possibility for ever by, in this provision, disapplying the provisions of that Act to defamation proceedings. If he cannot do that, second best would be to have an assurance that there will be no commencement order in relation to publication and privacy proceedings and defamation at some time in future. What would reinforce the argument for that are the recommendations of the Leveson report, which specifically deal with that issue. However, since we last met in Grand Committee and since the commencement order was passed, we have had another development—the passing in this House some five or six hours ago of Amendment 1 to this Bill, which not only deals with the issue of costs for defamation but deals with early dispute resolution, introducing arbitration proceedings. That has changed the environment in which this amendment was proposed. It is almost certain now that, whatever else happens, the issue of costs in defamation actions will have to be returned to again in the context of this Bill, either to modify the amended Bill as it presently stands or to do something else. I am not suggesting anything at the moment, having successfully stayed out of that debate thus far and hoped to keep myself in that position. I am minded at this stage to treat this to some degree as a marker, recognising that this issue will have to be debated, considered and legislated on in some fashion or other before the Bill can be completed. In the mean time, as this amendment is the only vehicle that I have to make this point, I beg to move.

[Lord McNally]

My Lords, I think that it was at an early stage of this Bill that I made it very clear that I was concerned with the matter of costs. The noble and learned Baroness, Lady Scotland, raised that in the debate on Clause 1 today. Everybody has recognised that this has been one of the key issues that have brought our libel laws into disrepute, and editors and journalists as well as ordinary citizens have long warned about the chilling effect of the current libel regime.

Although I do not object at all to the prodding from the noble Lord, Lord Browne, I hope he knows that in this respect he is pushing at an open door. He knows that the way that we have chosen to go was to ask the Civil Justice Council to look at how the Government can introduce a costs protection regime in defamation and privacy cases. The Master of the Rolls will report back to us with its suggestions by the end of March.

In the mean time, the Government have agreed that the provisions of the LASPO Act will not apply until a costs protection regime has been implemented. As the noble Lord indicated, the commencement order for this, which was laid on 18 January, includes a definition of “publication proceedings” and the cases to which the exemption will apply when Part 2 of the Act comes into force on 1 April. I should add that the Government’s definition goes wider than that proposed by Amendment 23.

Under our proposals, defamation and privacy cases will not feature as a permanent exemption from the LASPO Act, as this amendment seeks to apply. Instead, we will ensure that costs protection is in place so that anyone who needs to have security against adverse costs receives it. This will happen later in the year. This costs protection regime will apply to defendants as well as to claimants because defamation and privacy cases can affect academics, NGOs and ordinary people just as much as they can the super-rich and big businesses. The case for costs protection is even greater in these circumstances because an individual of modest means needs the assurance that if they have a good case that they need to pursue or defend, they will be able to do so without the risk of facing unaffordable costs.

The CJC will advise on the details by Easter. When the Government have properly considered the CJC’s proposals, the Civil Procedure Rules will be amended to introduce costs protection. As I say, we hope to be able to do that later in the year, but the current CFA and ATE arrangements will continue in place until then.

I once more reiterate to the House that I understand the concerns about access to justice in these cases. That is why we have taken the action I have outlined and it is why I am confident that we will be able to bring forward fully considered proposals which will ensure a proper and effective costs protection regime. I hope that on that basis the noble Lord will be prepared to withdraw this amendment.

[Lord Browne of Ladyton]

My Lords, I am grateful to the Minister for the clarity of his response. I think he knows that my view is that the undertaking in relation to costs protection is part of the answer but that this is a bigger problem than just costs protection. It is my ambition that the Government will be prepared to consider the disapplication of the provisions of the LASPO Act in all respects to the other parts of the challenges of defamation costs. Those costs are at the root of the problem of access to justice, which concerns the ability of people who do not otherwise have the resource to find solicitors who are prepared to take these sorts of actions on conditional fee arrangements and other arrangements. That should be reflected in the whole structure of costs.

I understand the effect of Amendment 1 well enough to know that this issue is not dead. I believe that we will need to return to this matter in some detail to deal with the way that the Bill has now been amended. I hope that the Government will apply their mind to that as quickly as possible and that we will see some movement. I am therefore confident that this is not the last word. It may be the Government’s last word but it will not be the last word on these issues. I shall continue to try to persuade the Minister of what I believe he already agrees with, although I have no desire to speak for him.

In the light of the fact that there will be further and probably better opportunities to deal with this issue in a more holistic fashion, I beg leave to withdraw the amendment at this stage.