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2022 MarsdenLR 1100

COURT OF APPEAL PUTRAJAYA
KINTA RIVERFRONT HOTEL & SUITES SDN BHD – Appellant
Versus
CHANG YOKE YEE & ANOR – Respondent
[Civil Appeal No: A-02(NCVC)(W)-1771-11-2020]



Petitioner Advocates:Rabinder Singh,Munira Hasnim ,Respondent Advocate: Raam Kumar,Norleena Jamal

Defamatory statements made in court may be protected by absolute privilege, subject to the relevance and good faith standards, which the court clarified in this judgment.

Headnote:(A) Defamation Act 1957 – Section 11 – Defence of absolute privilege – The appellant, found liable for defaming the respondents, claimed absolute privilege for statements made in a statement of defence during judicial proceedings – The court ruled the appellant was not entitled to this defence due to the statements being irrelevant and made in bad faith – The High Court previously struck out the defence but the Court of Appeal overturned this, highlighting the need for a full trial on the issue. (Paras 11, 12, 16, 34)

(B) The defence of justification and fair comment was raised but failed as the burden of proof rested on the appellant, who did not present evidence. (Paras 17, 18)

Facts of the case: The appellant published defamatory allegations against respondents, claiming they committed adultery in a hotel room, causing harm to their reputations. (Paras 2-6)

Findings of Court: The learned High Court Judge ruled the allegations made were irrelevant to the negligence case and therefore not protected under absolute privilege. (Paras 12, 13, 32)

Issues: The court addressed whether the appellant could rely on absolute privilege and if the High Court erred in finding the defence inapplicable due to irrelevancy and bad faith. (Paras 8, 17)

Ratio Decidendi: The court concluded that defamatory statements made in the course of court proceedings may still be protected by absolute privilege; however, the context matters. Irrelevance and malice undermine this privilege. (Paras 34)

Result: Appeal allowed, High Court's decision set aside. (Paras 34)

JUDGMENT

Ravinthran Paramaguru JCA:

Introduction

[1] The appellant who was the 1st defendant in the High Court was found liable for defaming the respondents. The 2nd defendant did not defend the action and judgment in default was entered against him. The alleged defamatory statement was published in a statement of defence filed by the appellant in another suit; a negligence suit brought by the respondents. The main issue in the Court below and before us is whether the appellant can avail the defence of absolute privilege as the defamation was published in the course of Court proceedings in the statement of defence.

Background Facts

[2] The 1st respondent is a businesswoman. The 2nd respondent is a senior lawyer. The appellant runs a hotel in Ipoh. The 2nd defendant is an individual who apparently claimed to be the husband of the 1st respondent. This fact was disputed by the 1st respondent. The detailed factual background need not detain us long as it is apparent that the big question that arises in this appeal is a question of law about the defence of absolute privilege. It suffices if we summarise what happened in the hotel that involved the respondents and the 2nd defendant.

[3] On 17 December 2016, the respondents were in a room in the hotel in question that was managed by the appellant. The 2nd defendant obtained an access card from the reception staff and barged into the hotel room occupied by the respondents. He assaulted both respondents. Following this incident, the respondents filed a civil suit (Suit AA- 22ANCVC-301-/2017) against both the appellant and the 2nd defendant in the High Court. The cause of action pleaded against the appellant was the tort of negligence as the hotel staff had given the room access card to the 2nd defendant. The tort of assault was pleaded against the 2nd defendant. The suit was transferred to the Sessions Court. The respondents succeeded in their action against the appellant and the 2nd defendant in the Sessions Court. After that, the respondents instituted the instant defamation action in the High Court.

Defamation Action

[4] It is the respondents' case the adultery allegations in the statement of defence filed in the negligence action by the appellant were defamatory. In the statement of defence, the appellant pleaded that the respondents committed adultery and that was the cause of the altercation between them and the 2nd defendant. The respondents filed an application to strike out all the averments relating to the adultery allegation on the ground that they frivolous, vexatious, scandalous and malicious. The Sessions Court allowed the application and the appellant did not appeal the decision.

[5] However, the matter of the defamatory averments in the statement of defence did not end after they were struck out. The respondents issued a notice of demand on 27 December 2017 to the appellant and the 2nd defendant demanding retraction and unconditional apology in the newspapers for the defamatory pleadings. Upon failure of the appellant and the 2nd defendant to accede to the notice of demand, the respondents filed the instant defamation suit against them.

Defamatory Averments

[6] The respondents pleaded that the following averments in the original statement of defence filed by appellant was defamatory of them. The averments pertained to the allegation that they committed adultery in the hotel room in question. The averments are as follows:

Paragraph 5:

"Defendan Pertama menegaskan bahawa kebanyakan kakitangan Defendan Pertama mengenali Plaintif Pertama dan Defendan Kedua sebagai suami isteri seperti mana yang diketahui umum."

Paragraph 8:

"Defendan Pertama menegaskan bahawa Plaintif Kedua adalah seorang individu yang mempunyai isteri dan anak-anaknya melalui perkahwinan yang sah, dan Defendan Pertama dan kakitangannya pula hanya mengenali Plaintif Pertama dan Defendan Kedua sebagai suami isteri, pada segala masa yang material. Defendan Pertama memohon Plaintif Kedua untuk mengemukakan butiran berkenaan

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