header-logo header-logo

14 June 2024
Categories: Legal News , In Court , Libel
printer mail-detail

Malicious falsehood requires hurt to pocket as well as feelings

A claimant cannot recover damages for injury to feelings caused by a falsehood if they do not also suffer financial loss, the Supreme Court has held

George v Cannell and anor [2024] UKSC 19, [2024] All ER (D) 39 (Jun), handed down this week, concerned a claim by Fiona George, who was a recruitment consultant for an agency owned and operated by Linda Cannell, and who moved to a different agency. Cannell spoke to one of George’s clients and sent an email to her new employer alleging she was acting in breach of restrictions in her contract. George sued for libel, slander and malicious falsehood.

The High Court found the statements were false and malicious but did not cause any financial loss as George was able to refute them by showing her new boss a copy of her old contract. It dismissed the claim on the basis financial loss must be shown for a claim to succeed.

The Court of Appeal reversed this decision, holding it was sufficient under s 3(1) of the Defamation Act 1952 to show the false statements were likely to cause financial loss, even if no actual loss occurred. Cannell appealed. The Supreme Court allowed Cannell’s appeal, on a 3–2 majority.

The Supreme Court unanimously held s 3(1) allows a claimant to demonstrate malicious falsehood where a falsehood is likely to cause financial loss―even if it does not. However, it also held a claimant can only recover damages for financial loss actually suffered. As no financial loss occurred, the claimant was entitled only to nominal damages. Lords Hamblen and Burrows dissented on this issue.

Jon Oakley, partner and specialist reputation lawyer at Simkins, said: ‘The claimant in this case believed that she was likely to suffer financial harm as a result of statements that had been made about her.

‘Although the court has decided the case in a certain way, I think that generally speaking, most people would agree that the law ought to provide a suitable remedy for anyone who finds themselves likely to suffer reputational harm as a result of any false and malicious statements that have been made about them. That is precisely why the law developed in the way that it had up to this point.

‘The court should try to strike a fair balance between competing rights and sometimes that isn’t easy on the facts.’

Categories: Legal News , In Court , Libel
printer mail-details

MOVERS & SHAKERS

Clarke Willmott—Matthew Roach

Clarke Willmott—Matthew Roach

Partner joins commercial property team in Taunton office

Farrer & Co—Richard Lane

Farrer & Co—Richard Lane

Londstanding London firm appoints new senior partner

Bird & Bird—Sue McLean

Bird & Bird—Sue McLean

Commercial team in London welcomes technology specialist as partner

NEWS
The legal profession’s claim to be a ‘guardian of fairness’ is under scrutiny after stark findings on gender imbalance and opaque progression. Writing in NLJ this week, Joshua Purser of No5 Barristers’ Chambers and Govindi Deerasinghe of Global 50/50 warn that leadership remains dominated by a narrow elite, with men holding 71% of top court roles
A legal challenge to police disclosure rules has failed, reinforcing a push for transparency in policing. In NLJ this week, Neil Parpworth examines a case where the Metropolitan Police required officers to declare membership of groups like the Freemasons
Bereavement leave is undergoing a quiet but profound transformation. Writing in NLJ this week, Robert Hargreaves of York St John University explains how the Employment Rights Act 2025 introduces a day-one right to leave for a wider range of losses, alongside new provisions for pregnancy loss and bereaved partners
Courts are beginning to grapple with whether AI-generated material is legally privileged—and the answers are mixed. In this week's issue of NLJ, Stacie Bourton, Tom Whittaker & Beata Kolodziej of Burges Salmon examine US rulings showing how easily privilege can be lost
New guidance seeks to bring order to the growing use of artificial intelligence (AI) in expert evidence. Writing in NLJ this week, Minesh Tanna and David Bridge of Simmons & Simmons set out a framework stressing ‘transparency’, ‘explainability’ and ‘reliability’
back-to-top-scroll