Neutral Citation Number: [2004] EWCA
Civ1329
Case
No:A2/2004/0380
IN THE SUPREME COURT OF JUDICATURE
COURT OF APPEAL (CIVIL DIVISION)
ON APPEAL FROM THE HIGH COURT OF JUSTICE
QUEEN’S BENCH DIVISION
(The Honourable
Mr Justice Eady)
Royal
Courts of Justice
Strand,
London,
WC2A 2LL
Date:
19 October 2004
Before :
THE
LORD CHIEF JUSTICE OF ENGLAND AND WALES
LORD JUSTICE MUMMERY
and
LORD JUSTICE LAWS
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Between :
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Lennox Lewis & Ors
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Appellants
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and -
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Don
King
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Respondent
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JUDGMENT : APPROVED BY THE COURT FOR HANDING DOWN (SUBJECT TO EDITORIAL
CORRECTIONS)
This is the judgment
of the court.
INTRODUCTORY
- This is an appeal, brought with permission
granted by Lord Justice Laws on 26 March 2004, against the decision of Eady J made on 12 February 2004 by which he declined
to set aside an order made by Master Whittaker on 2 October 2003. The
learned Master had acceded to an application by the claimant (the
respondent to this appeal) for permission to serve a claim form, seeking
damages for libel, on the defendants (appellants) out of the jurisdiction.
- The libels alleged consist in two texts stored on
websites based in California. In the ordinary way they can be, and have been, downloaded here.
It is common ground that by the law of England the tort of libel is committed where publication
takes place, and each publication generates a separate cause of action.
The parties also accept that a text on the Internet is published at the place
where it is downloaded. Accordingly there is no contest but that subject
to any defences on the merits the respondent has
been libelled in this jurisdiction. CPR Part
6.20 provides in part:
"In any proceedings to which
rule 6.19 does not apply, a claim form may be served out of the jurisdiction
with the permission of the court if
(2) a claim
is made for an injunction ordering the defendant to do or refrain from doing an
act within the jurisdiction,…
(8) a claim is made in tort where
(a) damage was sustained
within the jurisdiction; or
(b) the damage
sustained resulted from an act committed within the jurisdiction."
There is no doubt but that CPR 6.20(8)
applies to the case. In those circumstances the learned Master, and on appeal
the judge, enjoyed a discretion whether or not to
order service out. The discretion’s exercise required the court to decide what was the forum conveniens for
the conduct and trial of the proceedings – England or the United States (effectively New York). (CPR 6.20(2) was also relied on, since the claim
form contained an application for an injunction against further publication;
but since the websites are presumably controlled in California, it must at least be problematic whether that
application could be said to require or prohibit anything being done within the
jurisdiction.) The essential question arising on this appeal is whether Eady J fell into any error of law in exercising his
discretion to uphold the order for service out. The appellants accept that if
he did not, that is an end of the matter. Only if the judge can be shown to
have made a mistake of law would any discretion arise in this court to decide
what is the right order on the merits.
THE FACTS AND THE ALLEGED LIBELS
- The claimant (to whom we shall refer as
"King") is a citizen of the United States of America and lives in Florida. He is well known as a boxing promoter
throughout the world. He is particularly renowned not only in his home
country, but also here. Boxing is an extremely popular sport in the United Kingdom. Through a corporation wholly owned by him, Don
King Productions Inc ("DKP"), King has managed such household
British boxing names as Frank Bruno, Chris Eubank, Nigel Benn, Prince Naseem Hamed, and Lennox
Lewis, the first defendant ("Lewis").
- Lewis is a world champion heavyweight boxer. He
is a British citizen but is resident or principally resident in New York. He pays frequent visits to this country and
makes regular appearances on television here. The second defendant, Lion
Promotions LLC ("Lion"), is Lewis’ promotion company and is
based in Nevada. The third defendant, Mr
Judd Burstein ("Burstein"), is a New York attorney who acts for Lewis and Lion.
- We should indicate at this stage that since the
hearing of the appeal King has, on terms agreed between the parties,
discontinued the action against Lewis and Lion, so that Burstein is now
the sole defendant. In consequence, certain arguments canvassed before us
are now irrelevant.
- The story, which is nothing if not colourful, begins with a different piece of litigation
("the New
York
proceedings"). On 8 May 2003 Lewis and Lion issued proceedings in the New
York Supreme Court against four defendants: the ex-world heavyweight
champion Mike Tyson ("Tyson"), a corporation wholly owned by him
called Mike Tyson Enterprises Inc ("MTE"), King, and DKP.
Burstein acted for Lewis and Lion. The allegation was that King had for
reasons of his own intermeddled in a prospective contract to be entered
into between Lion, Lewis, MTE and Tyson by which earlier disputes were to
be resolved and arrangements agreed for a further world heavyweight
contest between Lewis and Tyson. Something of the flavour
of the claim may be got from this extract from the complaint:
"5. … King and DKP are
presently being sued by Tyson for having stolen as much as $100 million from
Tyson during the period that DKP served as Tyson’s exclusive boxing promoter. DKP’s conduct was so raw that its own attorneys… settled
Tyson’s case against them for an amount in excess of $20 million. Also on
information and belief, King was desperate to avoid a trial in the Tyson case…
because he well knew that he and DKP might well be bankrupted by a loss in the
case.
6. … [King] commenced a campaign of
bribery, lies and even a death threat to convince Tyson not to execute the
Second Lewis/Tyson Agreement and to breach his obligations thereunder…
More specifically, on information and belief:
(a) On an April 23 2003 telephone call,
King threatened Jeff Wald, a friend of Tyson, by
stating to Wald that he would ‘shove a shotgun up
[his] ass’, and would ‘come out to California and kill [him]’ if Wald ‘messed with [his] fighter’, i.e. by seeking to
interfere with King’s efforts to deter Tyson from signing the Second
Lewis/Tyson Agreement. Given King’s history of violence, including a four year
prison sentence for beating a man to death, this was not an idle threat…"
It is claimed that by reason of King’s and
DKP’s "tortious
interference" Lion and Lewis have suffered loss to the tune of at least
$35 million. "In addition, given King’s and DKP’s
wanton, wilful and malicious conduct, which is
shocking to the conscience, punitive damages in the amount of $350 million
should be awarded against them."
- Burstein was clearly not a man to understate his
case. On the same day, 8 May 2003, he posted the whole of the complaint – the
pleading – in the New York proceedings on the Internet (possibly before it was filed at the New York court). It was put on boxingtalk.com, one
of the Californian websites on which the alleged libels in the case before
us were to be published. Then on 27 May 2003 an article appeared in the Sun newspaper
here, entitled "LEWIS: I WAS CONNED". It refers briefly to the New York proceedings ("Sworn affidavits lift the lid
off the dark side of boxing".) Next to it appears what is said to be
an open letter from Lewis "to all his fans explaining why he is
fighting as hard outside the ring as he does in it".
- Now we may come to the two publications
complained of in these proceedings. The first was posted on a website called
fightnews.com from 5 July 2003 and thereafter. It referred to an article by one
Tim Smith published in the New York Daily News on 4 July 2003 which
quoted remarks made by King. The fightnews
piece was written by Burstein. Here is the passage complained of:
"I have read Don King’s recent
interviews with Tim Smith and others with great amazement. But for his plainly
anti-semitic remark – calling me a ‘shyster lawyer’ –
I would have been merely amused by his desperate and ridiculous charges.
Unfortunately, this is not the first time I have encountered such bigotry by
Don. Last year, one of his in-house lawyers sent me a letter on Yom Kippur eve
demanding that I take action on Yom Kippur. Needless to say, I vigorously
objected. Subsequently, that lawyer apologised to me
in person while explaining that Don had explicitly refused to permit him to apologise in writing. Since, Don apparently believes that
insulting Jews is appropriate conduct (indeed, he reportedly has even playfully
imitated Hitler during a press conference), I am sure that no apology will be
forthcoming for this more recent conduct.
Were it not for the anti-semitic nature of Don’s comments, I would probably have
remained silent. No one that knows the both of us is likely to take Don’s word
over mine. But in light of Don having stooped so low, it is time to take the
gloves off… I realise that he has no shame even when
he descends into rank bigotry."
- The second article was posted three days later,
on boxingtalk.com. As we have said, this was the website on which
the whole of the complaint in the New York proceedings had been published. The article was
entitled "Interview with Judd Burstein". It was written by G.
Leon ("GL"). Here is the material passage:
"July 08, 2003; shortly after returning home from vacation, Lennox
Lewis’s attorney Judd Burstein found some time to speak with boxingtalk.com.
Apparently he knew who the ‘others’ were. In this exclusive one on one
interview, Burstein and I discuss the ongoing verbal warfare between he [sic]
and promoter Don King. As well as Lennox Lewis’s suit against Tyson and
King, and King’s retaliatory counterclaim against Lennox Lewis. Read on to see
what the heavyweight champ’s attorney has to say.
GL: Obviously you’ve read Don’s remarks in
my article and Tim Smith’s article. What are your thoughts on his comments?
JB (Burstein): My first reaction was to
really ignore what he had to say…
What got me upset and led me to respond to
him was the clearly anti-semitic tone in his
comments. The term ‘shyster lawyer’ when used in connection with a Jewish
lawyer is designed to provoke anti-semitic feeling.
And if this were just something in isolation I wouldn’t care about it. But I
was told by a lawyer working for Don King, that he
wanted to apologise for demanding action from me on
Yom Kippur, and Don King has refused to permit him to apologise
to me in writing. It’s been reported by papers that he imitated Hitler at a
press conference, and I was just told today, that during a negotiation with
Shelly Finkel, he spent the whole time referring to
him as Shelly Finkelstein. He is quite plainly an anti-semite
and that kind of conduct and attitude has no place in this modern world. He has
every right to disagree with me and take a different position, or argue that I
haven’t acted appropriately. But when he starts with bigotry, that’s when
someone has to stand up and say something.
GL: So you have absolutely no doubt that
you’re not reading too much into what he’s saying by accusing him of bigotry?
JB: If this were an isolated incident, I
would say that perhaps I was reading too much into it. But it’s not an isolated
incident and I’ve seen him play the race card before…"
- King’s pleaded case is that the meaning of the
words complained of in both texts is that he is a persistent, bigoted, and
unashamed or unrepentant anti-semite.
ARGUMENTS ON THE FACTS
- It is important to notice that the texts
published on both websites contained other serious allegations against
King, including charges of corruption. King’s position, explained by his
solicitor Mr Asserson,
is that he is content for the substance of those accusations to be dealt
with in the New York proceedings where (although those proceedings are not
a libel suit) their merits will inevitably fall to be determined. Mr Browne QC for King made it plain to the judge below
that there was an active desire on his side to avoid the duplication of
issues in parallel proceedings in two jurisdictions, with the attendant
risk of inconsistent findings. By contrast Mr
Price QC for the defendants submits that this exercise in cherrypicking allegations to sue on here, leaving
others to be litigated there, is symptomatic of an illegitimate approach
on King’s side: "forum-shopping". We shall have to return to
that.
- We have said (paragraph 2) that it is only if the
judge can be shown to have made a mistake of law that any discretion would
arise in this court to decide what is the right order on the merits. So
much is common ground. If there is no error of law by the judge that is
the end of the matter. No doubt error of law includes (as of course it
does in other areas) a factual conclusion or judgment not capable of
rational justification given the evidence in the case.
- Here the judge was, of course, faced with
competing claims as to which forum would be more convenient for the
trial of King’s complaints about the texts posted on the Internet. On
King’s behalf his reputation – indeed fame – in this jurisdiction was
urged. And it was submitted that by posting the complaint in the New York proceedings on the Internet, Burstein gave the
disputes between the parties a global character. On the other side it was
said (to put it very generally) that this was really a USA case from first to last. That was where the real
dispute lay, as was shown by the New York proceedings. These arguments pro and con
are plain enough. We will not lengthen this judgment by filling out
the detail. If there were nothing else in the case, the judge’s assessment
of the pro and the con would be very unlikely to give rise
to a viable appeal. However Mr Price had two
more specific arguments as to the facts which we should describe.
- The first is that if the claim is to be tried
properly, the term "shyster lawyer" will have to be understood
as a reader of a New
York
newspaper would understand it. It is well known that New York has a very large Jewish population; it may well
be that "shyster" has a different connotation in New York than it possesses in London. The parties have been locked in argument as to
the meaning of the term. King’s solicitor, Mr Asserson, has asserted (citing the Shorter Oxford
English Dictionary and other materials) that "the word ‘shyster’
has no specifically Jewish or racist connotations". It is said for
the defendants that this debate is of particular importance in the context
of their case as to qualified privilege or "response to attack".
- The second more particular argument is that
Burstein, if he has to face trial here, will encounter real difficulty in
assembling his evidence. Crucial witnesses are in the United States. They are identified in Burstein’s second
witness statement whose effect was summarised in
Mr Price’s skeleton before the judge below. Mr Gary Shaw speaks to a critical meeting; Mr English is witness to the "Shelley Finkel" episode; they and some six other
witnesses speak to Burstein’s reaction to being called a "shyster
lawyer". All (save Burstein’s wife), says Mr
Price, would or might only attend under subpoena. The consequent
difficulties for the defendant if the trial is to be conducted in this
jurisdiction will, it is said, be very serious.
- Other points included an issue – no longer live
since the discontinuance – about how far Lewis and Lion, as co-defendants,
could be said to be responsible for Burstein’s allegations of anti-semitism, and also a question whether any of the
defendants had authorised the downloading of the
website texts in England.
- THE JUDGMENT.
- After dealing with the first of these latter two
questions in paragraphs 33 – 35 of his judgment, Eady
J continued as follows:
"36. Other issues on the
horizon are justification, fair comment and qualified privilege. Principally, I
suppose, the argument will turn upon whether in describing Mr
Burstein as a ‘shyster lawyer’ Mr King was indeed
giving vent to anti-semitic or racist attitudes. Mr Burstein’s allegations refer to Mr
King ‘believing’ that it was appropriate to insult Jews, and it was also
alleged that his words were ‘designed’ to provoke anti-semitic
feeling. Yet one of the arguments Mr Price has
raised, in order to demonstrate that New York would be the appropriate forum,
was that it has to be determined how the term ‘shyster’ would be construed in
that city. In particular, does it have a special meaning there different from
how it would be understood by English readers? I do not find this persuasive
for a number of reasons:
(1) We are concerned with English
publication only. What matters, therefore, would be what is conveyed by the
words complained of in that jurisdiction.
(2) It is important to focus not so much
on how ‘shyster’ would be interpreted in any particular country but rather on
what Mr King’s state of mind and motivation was when
he uttered the remarks.
(3) If an equivalent libel action to this
were commenced by Mr King in New York it would not, according to the Defendants’ evidence,
‘survive’ (because of the different approach of New York law to defamation): See paragraph 11 of Mr Burstein’s own witness statement.
(4) It seems clear from a web search of
900 dictionaries (including specifically American ones) that there is no
support for the word ‘shyster’ having any anti-semitic
connotations.
37. In the light of the proposition that
no such actions could survive in New York, it would seem that some of the other arguments about
whether New York would be a more convenient forum become of
theoretical interest only. There would seem to be little point in addressing
how much more convenient it would be, or would not be, for people to give
evidence there rather than here.
38. In any event, however, it seems clear
that the Claimant would wish to adduce evidence from a number of witnesses
based in the United
Kingdom,
on such matters as his reputation and connection with this country and, in
particular, his links with Jewish charity work in London."
- And so after addressing other points, including
the question whether any of the defendants had authorised
the downloading of the website texts in England, the judge concluded
(paragraph 43) that this was "a claim which should be permitted to go
forward in this jurisdiction", and declined to set aside the Master’s
order.
THE DEFENDANTS’ PRINCIPAL CASE
- Mr Price advances a number of criticisms of the
judge. One in particular, however, he puts forward as demonstrating a
plain error of law. The task of the judge (once the gateway of CPR 6.20
was passed, as it was), at any rate his first task, was to decide
objectively which venue was the most appropriate forum for the
conduct of the litigation. But this was not what Eady
J did. By reference to paragraphs 36(3) and 37, Mr
Price submits that the judge adopted a different approach. He held that
King would enjoy what in the argot of the law of defamation is called a
"juridical advantage" if he were allowed to sue in this
jurisdiction. The advantage arose because no equivalent action brought in New York would "survive"; and (so it is said
the judge concluded) King should have the benefit of this advantage. It is
plainly demonstrated on authority that this is an impermissible approach.
We understood Mr Browne to accept that if this
is indeed what the judge did, he was in error and this court (unless, we
suppose, it remitted the matter) would have to decide for itself where was
the forum conveniens. But Mr Browne said that the argument against him misreads
the judgment. Before deciding whether that is so, we find it convenient to
give some account of the relevant law.
THE LAW
- The starting-point is Spiliada
Maritime Corp. v Cansulex Ltd. It was not a
libel case. It was a shipping dispute. But it establishes two propositions
which are central to the correct approach to be taken to issues of forum
conveniens. First, Lord Templeman
stated:
"… [I]t seems to me that the
solution of disputes about the relative merits of trial in England and trial
abroad is pre-eminently a matter for the trial judge… An appeal should be rare
and the appellate court should be slow to interfere."
Lord Goff of Chieveley
made it clear that despite the use of the Latin adjective conveniens
the real question in these cases was, which was the more appropriate
forum. Then, discussing the resolution of applications brought under
the predecessor of CPR 6.20 (RSC Order 11) he said - and here is the second
proposition:
"[It] is not merely that the burden
of proof rests on the plaintiff to persuade the court that England is the appropriate
forum for the trial of the action, but that he has to show that this is clearly
so."
Mr Price places some emphasis on this. He points to the
fact that in his formulation of what the claimant must demonstrate, the judge
(paragraph 14) omits the adverb "clearly". But with respect to Mr Price this is a footling complaint, and in fairness he
barely pressed it. It is unrealistic to suppose that this experienced
specialist judge misunderstood or misremembered the approach taken in Spiliada to judicial decisions as to the
choice of appropriate forum. It is to be noted that no other criticism
is directed to the judge’s general summation of the law appearing at paragraphs
14 – 21; we need not set it out.
- Lord Goff’s speech also contains, with respect,
important material pertaining to the notion of "juridical
advantage", and we will come to that later in this judgment.
- The cases also contain guidance as to what the
court should have in mind in deciding what is the appropriate forum.
We discern four strands in the learning, relevant to the circumstances of
this case. We shall be at pains to emphasise the
fact, as we see it, that the first three are much more to do with
discretion than law.
- The first of these strands is that there exists
an initial presumption that the natural or appropriate forum for
trial of the dispute will be the courts of the place where the tort is
committed. The principle is not limited to the tort of defamation; indeed
a leading case in which it was articulated, The Albaforth,
concerned an alleged negligent misstatement. Robert Goff LJ, as he then
was, stated (after citing earlier authority):
"Now it follows from those decisions
that, where it is held that a Court has jurisdiction on the basis that an
alleged tort has been committed within the jurisdiction of the Court, the test
which has been satisfied in order to reach that conclusion is one founded on
the basis that the Court, so having jurisdiction, is the most appropriate Court
to try the claim, where it is manifestly just and reasonable that the defendant
should answer for his wrongdoing. This being so, it must usually be difficult
in any particular case to resist the conclusion that a Court which has
jurisdiction on that basis must also be the natural forum for the trial of the
action."
In Berezovsky
Lord Steyn expressly approved this approach, and
did so in a context where it was being directly challenged in their Lordships’
House. He said:
"For my part the Albaforth
line of authority is well established, tried and tested, and unobjectionable
in principle."
- Though the House was divided as to the result in Berezovsky, there was no dissent among their
other Lordships from this statement as to the correctness of The Albaforth. It is clear, however – and this will
lead to the second feature of the learning that we would emphasise – that The Albaforth
is only a starting-point. Lord Hope of Craighead said as much in Berezovsky, and continued:
"In a defamation case the judge
is not required to disregard evidence that publication has taken place
elsewhere as well as in England. On the contrary, this feature of the case, if
present, will always be a relevant factor. The weight to be given to it will
vary from case to case, having regard to the plaintiff’s connection with this
country in which he wishes to raise his action. The rule which applies to these
cases is that the plaintiff must limit his claim to the effects of the
publication in England: Diamond v Sutton (1866) LR 1 Ex 130; Schapira v Ahronson [1999]
EMLR 735; see also Eyre v Nationwide News Pty. Ltd [1967] NZLR 851.
Common sense suggests that the more tenuous the connection with this country
the harder it will be for the claim to survive the operation of this
rule."
- That The Albaforth is
no more than a starting-point for identification of the most appropriate forum
is we think lent emphasis by the decision of the Court of Appeal in Chadha v Dow Jones & Co. There all
the parties were resident in the United States. The alleged libel consisted in an article
published in an American magazine. The total sales of the edition in
question were 294,346 of which 283,520 were sold in the United States, 408 were sent to subscribers in the United Kingdom and 849 were sold at news stands here. Popplewell J at first instance set aside service of
the writ in the United States. This court upheld his order. Roch LJ (with whom Otton and
Pill LJJ agreed) said this:
"Returning to the judgment of Popplewell J he said…:
‘This being a case where both plaintiff
and defendant are outside the jurisdiction I am wholly unpersuaded
that there is any presumption in favour of the
plaintiff or that the authorities as to where a cause of action arises are of
any assistance in the instant case.’
In my judgment there is nothing
objectionable in that way of stating the law in this particular case. Here the
appellants and the respondents were and are outside the jurisdiction and
consequently it was for the appellants to show that they had sufficient
connections with this country and a reputation to protect in this country."
- Thus the starting-point for the ascertainment of
what is clearly the most appropriate forum is to identify the place
where the tort has been committed. That will, of course, by definition be England in a defamation case where leave to serve out
has been obtained on the basis of publication here. But – and here is our
second proposition from the cases – the more tenuous the claimant’s
connection with this jurisdiction (and the more substantial any
publication abroad), the weaker this consideration becomes.
- The third strand in the learning to which we
would draw attention was initially prompted by what Lord Steyn in Berezovsky
called "trans-national" libels, thus including libels
perpetrated on the Internet. The present case is of course an example.
Such libels have generated a good deal of academic discussion, and have
been passed on by the High Court of Australia in Gutnick
v Dow Jones. Mr Price sought to persuade us
to adopt a special rule for Internet libels, and we must deal with that.
First, in Berezovsky Lord Steyn said this:
"… counsel put forward the
global theory on a reformulated basis. He said that when the court, having been
satisfied that it has jurisdiction, has to decide under Order 11 whether
England is the most appropriate forum ‘the correct approach is to treat the
entire publication – whether by international newspaper circulation,
trans-border or satellite broadcast or Internet posting – as if it gives
rise to one cause of action and to ask whether it has been clearly proved that this
action is best tried in England.’ If counsel was submitting that in respect
of trans-national libels the court exercising its discretion must consider the
global picture, his proposition would be uncontroversial. Counsel was, however,
advancing a more ambitious proposition. He submitted that in respect of
trans-national libels the principles enunciated by the House in the Spiliada case… should be recast to proceed on
assumption that there is in truth one cause of action. The result of such a
principle, if adopted, will usually be to favour a
trial in the home courts of the foreign publisher because the bulk of the
publication will have taken place there. "
This "more ambitious"
proposition was rejected by Lord Steyn. But we
consider with respect that his reference to the court’s need, in the case of
trans-national libels, to "consider the global picture" is something
more than a passing aside. What is "the global picture"? Where there
is publication, say in two jurisdictions only, it remains relatively confined,
and the Albaforth starting-point may
remain very meaningful. But in relation to Internet libel, bearing in mind the
rule in Duke of Brunswick v Harmer that each
publication constitutes a separate tort, a defendant who publishes on the Web
may at least in theory find himself vulnerable to multiple actions in different
jurisdictions. The place where the tort is committed ceases to be a potent
limiting factor.
- In Gutnick v
Dow Jones the High Court of Australia firmly rejected a challenge, in
the context of Internet libel, to the applicability of such established
principles as that vouchsafed in Duke of Brunswick. In doing so the
court made certain observations about Internet publication which with
respect, we think we may usefully bear in mind:
"39. It was suggested that the
World Wide Web was different from radio and television because the radio or
television broadcaster could decide how far the signal was to be broadcast. It
must be recognised, however, that satellite
broadcasting now permits very wide dissemination of radio and television and it
may, therefore, be doubted that it is right to say that the World Wide Web has
a uniquely broad reach. It is no more or less ubiquitous than some television
services. In the end, pointing to the breadth or depth of reach of particular
forms of communication may tend to obscure one basic fact. However broad may be
the reach of any particular means of communication, those who post information
on the World Wide Web do so knowing that the information they make available is
available to all and sundry without any geographic restriction."
"181. A publisher, particularly one
carrying on the business of publishing, does not act to put matter on the
Internet in order for it to reach a small target. It is its ubiquity which is
one of the main attractions to users of it. And any person who gains access to
the Internet does so by taking an initiative to gain access to it in a manner
analogous to the purchase or other acquisition of a newspaper, in order to read
it."
"192. … Comparisons can, as I have
already exemplified, readily be made. If a publisher publishes in a
multiplicity of jurisdictions it should understand, and must accept, that it
runs the risk of liability in those jurisdictions in which the publication is
not lawful and inflicts damage."
- So far, then, the Duke of Brunswick has
well survived the Internet, certainly in the High Court of Australia. And
the court’s vindication of traditional principles relating to publication
and jurisdiction in defamation cases marches with Lord Steyn’s
rejection, in Berezovsky, of
counsel’s "more ambitious proposition… in respect of trans-national
libels".
- We do not suggest, nor did Mr
Browne, that Gutnick is a gateway
for the introduction of a new rule in the law of England relating to Internet publications. It
established no new rule in Australia. But the court’s rejection of sweeping
submissions that would have done away with Duke of Brunswick in favour of the "single publication rule"
known in many States of the USA, alongside the dicta in Gutnick which emphasise
the Internet publisher’s very choice of a ubiquitous medium, at least
suggests a robust approach to the question of forum: a global
publisher should not be too fastidious as to the part of the globe where
he is made a libel defendant. We by no means propose a free-for-all for
claimants libelled on the Internet. The court
must still ascertain the most appropriate forum; the parties’
connections with this or that jurisdiction will still have to be
considered; there will be cases (like the present) where only two
jurisdictions are really in contention. We apprehend this third strand in
the learning demonstrates no more than this, that in an Internet case the
court’s discretion will tend to be more open-textured than otherwise; for
that is the means by which the court may give effect to the publisher’s
choice of a global medium. But as always, every case will depend upon its
own circumstances.
- We should notice, though we do so only in
passing, that the Law Commission were perhaps rather more troubled about
the effects of global publication. In DEFAMATION AND THE INTERNET: A
Preliminary Investigation they stated:
"Although we have some sympathy with
the concerns expressed about the levels of ‘global risk’, any solution would
require an international treaty, accompanied by greater harmonisation
of the substantive law of defamation. We do not think that the problem can be
solved within the short or medium term. We do not therefore recommend reform in
this area at the present time."
- Before we come to the fourth and last strand,
which concerns "juridical advantage", we have two further
observations at this stage. The first is to notice Mr
Price’s submission that in deciding, in an Internet case, what is the most
appropriate forum the court should be more ready to stay
proceedings "where defendants did not target their publications
towards the jurisdiction in which they have been sued. That is, it might
be argued that for the purposes of forum non conveniens
enquiries involving material published via the Internet, the intention
of the defendant should be taken into account".
- We would reject this submission out of hand. As
the Lord Chief Justice pointed out in the course of argument, it makes
little sense to distinguish between one jurisdiction and another in order
to decide which the defendant has "targeted", when in truth he
has "targeted" every jurisdiction where his text may be
downloaded. Further, if the exercise required the ascertainment of what it
was the defendant subjectively intended to "target", it would in
our judgment be liable to manipulation and uncertainty, and much more
likely to diminish than enhance the interests of justice.
- Our second observation at this stage requires, as
it were, the court to don a hair shirt. We have spent a good deal of space
discussing authority, and the relation between one case and another, as if
for all the world these issues concerning forum were all matters of
the highest principle. But first and foremost we are concerned with the
exercise of a judicial discretion which lies primarily in the hands of
first instance judges. We repeat, without apology, what was said by Lord Templeman in Spiliada:
"… [I]t seems to me that the
solution of disputes about the relative merits of trial in England and trial
abroad is pre-eminently a matter for the trial judge… An appeal should be rare
and the appellate court should be slow to interfere."
The theme is given added force by Lord
Hoffmann in Berezovsky:
"The decision of the Court of Appeal
in this case has since been distinguished in Chadha
v Dow Jones…, in which the plaintiff and the defendants were both resident
in the United
States.
The respondent plaintiffs say that that case is likewise distinguishable. So it
is. All the cases cited are in some respects similar and in some respects
different. But, my Lords, I protest against the whole exercise of comparing the
facts of one case with those of another. It is exactly what Lord Templeman in the Spiliada
case said should not be done and what the judge rightly refused to
do."
- In our opinion it is difficult to over-emphasise the importance of these observations. All
the propositions, or strands in the learning as we have called them, which
we have described are really matters of practical reasoning, and not legal
rules. The Duke of Brunswick is a legal rule; so is the requirement
to ascertain the clearly appropriate forum (Spiliada).
The relative importance of all the factors which must then be examined –
the place of the tort, the parties’ connection with this or that
jurisdiction, the publisher’s choice to go on the Internet – are not legal
rules. They are matters which will inform the judge who must decide where
the balance of convenience lies. We think it is a pity that there is so
much learning about them. But it is a weakness of the common law that
areas in which the litigants usually have ample resources with which to
fund litigation tend to become too case-bound. That is what has happened
here. In adding yet more to the books our only excuse is that it has seemed
appropriate to say something about the refining of conventional approaches
to the particular circumstances of Internet libels.
- We turn then to the last strand in the cases.
This does, we think, involve what is truly a question of law. As we have
foreshadowed, Mr Price submits that the first
task of the judge (once the gateway of CPR 6.20 was passed, as here it
was) is to decide objectively which venue was the most appropriate forum
for the conduct of the litigation. He must perform this task without
reference to any "juridical advantage" which the claimant would
or might enjoy by suing in England. Only if the judge decides that another forum
is more appropriate should he then consider whether after all there
exists a juridical advantage for the claimant such that trial in England
is required if substantial justice is to be done between the parties. Mr Price cites Metall
und Rohstoff AG. That case concerned a
complicated commercial dispute involving allegations of conspiracy. A
claim by the plaintiffs for inducing or procuring a breach of contract
would have been statute-barred in New York. Slade LJ giving the judgment of the Court of
Appeal stated:
"The judge’s approach to the
limitation point was further criticised by the
defendants’ counsel on the grounds that, following the guidance given by Lord
Goff in Spiliada relating to the treatment of
a ‘legitimate personal or juridical advantage’ (at pp. 482-484) he should first
have considered which was the appropriate forum without reference to the
juridical advantage which M. & R. would enjoy by proceedings in England,
and only if he decided that New York was prima facie the appropriate forum,
should have gone on to consider whether, none the less, the limitation point
rendered a trial in England necessary for the purpose of doing substantial
justice between the parties. We think that the approach to this point suggested
on behalf of the defendants is correct in principle and that at least on one
reading of the judge’s judgment, he did not follow it, but took into account
the juridical advantage point in his initial search for the appropriate forum.
"
Here are the material extracts from Lord
Goff’s speech in Spiliada:
"The key to the solution of this
problem lies, in my judgment, in the underlying fundamental principle. We have
to consider where the case may be tried ‘suitably for the interests of all the
parties and for the ends of justice.’ Let me consider the application of that
principle in relation to advantages which the plaintiff may derive from invoking
the English jurisdiction. Typical examples are: damages awarded on a higher
scale; a more complete procedure of discovery; a power to award interest; a
more generous limitation period. Now, as a general rule, I do not think that
the court should be deterred from granting a stay of proceedings… simply
because the plaintiff will be deprived of such an advantage, provided that the
court is satisfied that substantial justice will be done in the available
appropriate forum. Take, for example, discovery. We know that there is a
spectrum of systems of discovery applicable in various jurisdictions… No doubt
each of these systems has its virtues and vices; but, generally speaking, I
cannot see that, objectively, injustice can be said to have been done if a
party is, in effect, compelled to accept one of these well-recognised
systems applicable in the appropriate forum overseas… Then take the scale on
which damages are awarded. Suppose that two parties have been involved in a
road accident in a foreign country, where both were resident, and where damages
are awarded on a scale substantially lower than those awarded in this country.
I do not think that an English court would, in ordinary circumstances, hesitate
to stay proceedings brought by one of them against the other in this country
merely because he would be deprived of a higher award of damages here.
But the underlying principle requires that
regard must be had to the interests of all the parties and the ends of justice;
and these considerations may lead to a different conclusion in other cases… [T]ake the example of cases concerned with time bars… Now, to
take extreme examples, suppose that the plaintiff allowed the limitation period
to elapse in the appropriate jurisdiction, and came here simply because he wanted
to take advantage of a more generous time bar applicable in this country; or
suppose that it was obvious that the plaintiff should have commenced
proceedings in the appropriate jurisdiction, and yet he did not trouble to
issue a protective writ there; in cases such as these, I cannot see that the
court should hesitate to stay the proceedings in this country, even though the
effect would be that the plaintiff’s claim would inevitably be defeated by a
plea of the time bar in the appropriate jurisdiction. Indeed a strong
theoretical argument can be advanced for the proposition that, if there is
another clearly more appropriate forum for the trial of the action, a stay
should generally be granted even though the plaintiff’s action would be time
barred there. But, in my opinion, this is a case where practical justice should
be done. And practical justice demands that, if the court considers that the
plaintiff acted reasonably in commencing proceedings in this country, and that,
although it appears that (putting on one side the time bar point) the
appropriate forum for the trial of the action is elsewhere than England, the
plaintiff did not act unreasonably in failing to commence proceedings… in that
jurisdiction within the limitation period applicable there, it would not, I
think, be just to deprive the plaintiff of the benefit of having started
proceedings within the limitation period applicable in this country… "
- We have to say, with the greatest deference, that
we find this rather difficult. A principle requiring objective
ascertainment of the appropriate forum, without regard to any particular
legal or procedural advantages to claimant or defendant, would be one
thing. A wider principle, allowing the court to take account of such
juridical advantages to either side, and then exercise a broad discretion,
would be another. Both would be clear enough, though we can see that the
latter might draw the court into some assessment (however preliminary) of
the claim’s merits; and that would likely (and no doubt rightly) be
thought undesirable. But we are not sure that we have grasped the idea of
a principle which first enjoins ascertainment of the appropriate forum,
but then allows the claimant to proceed in an inappropriate forum because
he has acted reasonably in relation (for instance) to differential time
bars applicable in the candidate jurisdictions.
- However, Spiliada
and Metall und Rohstoff
undoubtedly state the present law on this part of the case. It remains
to see whether Eady J was true to it.
DID THE JUDGE MAKE A MISTAKE OF LAW?
- As we have indicated Mr
Price submitted, by reference to paragraphs 36(3) and 37 of the judgment,
that instead of asking himself the first (and usually critical) question
as to what was the appropriate forum the judge proceeded on the
footing that King should be allowed to sue in England so as to enjoy a
juridical advantage arising from the fact that no equivalent action
brought in New York would "survive". It is convenient first to
identify the legal nature of this supposed advantage. It arises from what
are said to be the effects of the celebrated decision of the Supreme Court
of the United
States in New York Times v Sullivan. The case is one of great
importance, but for present purposes it is not necessary to say more about
it than that it places very severe inhibitions upon the bringing of a
claim in libel by a "public figure". Mr
Price’s case is that King has issued his claim in England because he fears it would be defeated in New York by the "public figure" rule; the judge
has allowed the claim to proceed on that basis; and that is an
impermissible outcome involving an error of law: Spiliada
and Metall und Rohstoff.
- As we have said, Mr
Price’s argument is based on what the judge said at paragraphs 36(3) and
37 of his judgment. We will not set them out again. The judge’s reasoning
is certainly exiguous. It could, with, respect, have been more clearly
stated. At all events, in tracing the judge’s meaning it is important
first to notice that at paragraph 36(3) the source given for the
proposition that a New York claim would not "survive" is not a complaint by King,
but a statement by Burstein – paragraph 11.9 of his first witness
statement:
"In addition, I believe that if
the claim which is being brought by Mr King in these
proceedings in England was brought in the US, it would not survive. This is due to rules in the US which apply to statements made in relation to public
figures. Mr King therefore appears to be deliberately
‘forum-shopping’ by bringing his claim in England."
Burstein’s primary case, of course, was
that New York was the appropriate forum. There was a certain irony
in his assertion that proceedings brought in the appropriate forum would in
effect be doomed to failure. Mr Asserson
for King picked up the point at paragraph 13 of his second witness statement:
"At Paragraph 11.9 of his statement,
the Third Defendant, who is an experienced US attorney, states that under US law the present claim ‘would not survive’. It is hard
to think of a more compelling reason than this to allow the action to proceed
in England. The Claimant seeks relief before the English Court for a tort committed in England. The Third Defendant’s argument that it should be
heard in the USA specifically because the Claimant could not
get relief there seems entirely illogical."
- It had not been King’s case, in seeking leave
under CPR 6.20 or in resisting the defendants’ contention that the leave
which was granted should be set aside, that the court should attach
significance to any actual or apprehended juridical disadvantage arising
from New York Times v Sullivan. The judge at paragraphs 36(3) and
37 was not accepting, indeed not dealing with, any argument to that effect
put forward on King’s behalf. It seems to me that Mr
Browne was right to submit that at paragraph 37 the judge in essence did
no more than notice the irony to which we have referred. His decision, in
our judgment, was by no means based on an illegitimate approach to
juridical advantage or disadvantage.
- Mr Price was especially at pains to submit that the
error with which he charged the judge had led him to overlook the need to
consider, in the context of appropriate forum, the weighty
considerations advanced on the defendants’ side (now, of course, only
Burstein) as to the difficulties they would face in marshalling their
evidence if they were required to face trial in England. But, for our
part, we have acquitted the judge of the error laid at his door, and we
would accept that he undertook the exercise required of him, namely to
ascertain what in his view was clearly the appropriate forum. In
those circumstances we regard it as simply inconceivable that he failed to
give proper consideration to the points urged on both sides. Both sides
had arguments as regards the calling of witnesses (indeed, as it happens,
King has put in a respondent’s notice asserting that witness convenience
clearly points in favour of trial in England).
The issue was one which, no doubt, pulled in both directions.
CONCLUSION
- The judge took an overall view of appropriate forum.
He was entitled, indeed obliged, to do so. He did not make the legal
mistake laid at his door by Mr Price. The
defendants’ other points, such as the approach to be taken to the meaning
of "shyster", and whether any authority was given to download Burstein’s
texts in England, do not begin to disclose an error of law by the judge.
- In these circumstances there is in our judgment
no basis on which this court could properly be invited to ascertain the
appropriate forum for itself, and for all the reasons we have given
the appeal will be dismissed.