Wong Shui Kee Roger t/a Roger S.K. Wong & Co., Solicitors v. Victor L.L. Chu and Others
Read the full judgment text of HCA 5590/2000 on BabelCite. This High Court CFI judgment was delivered on 19 September 2001.
1. Both the plaintiff and the defendants are solicitors practising in Hong Kong. One of their shared areas of expertise is the law of intellectual property. In 1994, the parties represented opposing litigants in proceedings which took place in this Court. The defendants acted as solicitors for a company which claimed that there had been an infringement of its copyright in certain battery-operated toys. The plaintiff acted as solicitor for the company against whom the proceedings had been institu
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HCA005590/2000 HCA5590/2000 IN THE HIGH COURT OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION COURT OF FIRST INSTANCE ACTION NO. 5590 OF 2000 ---------------------
------------------------- Coram: Hon Hartmann J in Court Dates of Hearing: 10 and 11 September 2001 Date of Handing Down Judgment: 19 September 2001 ---------------------- J U D G M E N T ---------------------- Introduction 1.Both the plaintiff and the defendants are solicitors practising in Hong Kong. One of their shared areas of expertise is the law of intellectual property. In 1994, the parties represented opposing litigants in proceedings which took place in this Court. The defendants acted as solicitors for a company which claimed that there had been an infringement of its copyright in certain battery-operated toys. The plaintiff acted as solicitor for the company against whom the proceedings had been instituted. 2.In the course of those proceedings, letters passed between the parties. Some were couched in direct, robust language. 3.On 2 November 1994, the defendants sent a letter to the plaintiff concerning the litigation. The plaintiff took exception to the contents of one paragraph of that letter. In his view it was defamatory of him. The paragraph read :
4.It was the accusation that he had been 'intellectually dishonest' to which the plaintiff took exception. By letter dated 3 November 1994, he demanded that the statement be withdrawn and he receive an apology, failing which he would, to employ his words, take 'appropriate action'. 5.On 9 November 1994, the defendants replied. While an unreserved apology was not given, the letter was couched in conciliatory terms. The relevant portion read :
6.There does not appear, at that time, to have been further correspondence concerning the offending letter. However, in June 2000, more than five years after that letter had been received by the plaintiff, the present action was instituted. 7.That the words contained in the offending letter were defamatory of the plaintiff is stated in the following terms in paragraph 6 of the plaintiff's Amended Statement of Claim :
8.As for publication of the statement, the plaintiff, in paragraph 5 of the Amended Statement of Claim, claims that there have been three instances of publication. For the purposes of the limited issue argued before me, the defendants have not contested that publication was, in fact, made on those three occasions which may be stated as follows :
9.The defendants have defended the plaintiff's defamation action on a number of grounds. One of those grounds is that the alleged defamatory statement was made and published on occasions of absolute privilege, that is, within the course of proceedings before a court of judicature. 10.As the resolution of this defence was in no way dependent upon a resolution of contested factual issues and was able to be resolved on arguments of law, application was made by the defendants in terms of Order 33, rule 3 of the Rules of the High Court for a direction that the issue of absolute privilege be tried as a preliminary issue. In March of this year, having heard argument, Deputy Judge Muttrie made that order. 11.Accordingly, the matter comes before me to decide one issue only. It is whether all or any of the publications of the offending letter occurred on occasions of absolute privilege. Absolute privilege in judicial proceedings 12.The nature of absolute privilege in judicial proceedings has been defined in seminal terms by Lopes LJ in the nineteenth century case of Royal Aquarium and Summer and Winter Garden Society Ltd v. Parkinson [1892] 1 QB 431 (at 451) :
13.Absolute privilege by its nature is a privilege of some magnitude, one which may, albeit for a higher interest, impinge substantially on the rights of individuals. It is therefore a privilege to be kept within defined boundaries. It is for this reason no doubt, as Brooke LJ observed in Waple v. Surrey County Council [1998] 1 All ER 624 (at 627), that it has been settled for over 100 years that 'the courts should be very slow to extend the scope of this privilege'. 14.When absolute privilege is applicable in judicial proceedings has been stated by Devlin LJ in Lincoln v. Daniels [1962] 1 QB 237. In so doing (at 257) he has divided the privilege into three categories :
In the course of judicial proceedings ... 15.With the exception of the limited circumstances contained in Devlin LJ's third category, absolute privilege only comes into being with the commencement of judicial proceedings. It then endures until the conclusion of those proceedings. 16.In the present matter, it is not disputed that proceedings in the High Court came into being in August 1994 and continued until August of the following year. 17.In those proceedings, the defendants acted as solicitors for a company called Soma International Limited ('Soma') which designed and manufactured toys. Action was instituted against a company called Dolly Dolls & Toys Factory Limited ('Dolly Dolls') on the basis that Dolly Dolls, in manufacturing and distributing a range of battery-operated toy figures, was infringing Soma's copyright. The plaintiff was engaged to act as solicitor for Dolly Dolls. 18.As is common in actions concerning alleged infringement of copyright, the defendants issued a writ of summons seeking a permanent injunction, damages and the like ('the main action') and at the same time commenced interlocutory proceedings seeking a temporary injunction until the main action had been resolved. 19.The interlocutory proceedings were set down for hearing in mid-November 1994 and near to that date court bundles were prepared in anticipation of the hearing. They were delivered to the court and counsel. As it turned out, the parties were able to reach agreement in terms of which Dolly Dolls consented to an interim injunction. A consent order was made to that effect. There was, therefore, no need for a contested hearing. 20.In the main action, in May 1995 the defendants issued a summons seeking summary judgment in respect of liability. The matter came to trial in July 1995 and shortly thereafter judgment was granted in favour of Soma. This led to a final settlement of the litigation in terms of which Dolly Dolls paid an agreed amount of damages and legal costs. The terms of final settlement were recorded in a consent order. 21.The offending letter was dated 2 November 1994, well after litigation in both actions had commenced. It is not disputed, therefore, that it came into existence and was published in the course of judicial proceedings. For the purpose of the proceedings ... 22.While absolute privilege is available where it is derived from judicial proceedings in the ways described by Devlin LJ, it will only protect communications when they are published for the purposes of the proceedings. Judicial proceedings, therefore, cannot be used as a shield to protect a party making a defamatory statement that is not for the purposes of the proceedings. 23.That, of course, begs the question : how is it to be determined whether a communication is or is not made for the purposes of the proceedings? 24.It has been said that the boundary where absolute privilege is lost and the lesser protection of qualified privilege is assumed is unsettled. In the present case, however, the plaintiff has argued that the defendants have crossed that boundary. An attempt must therefore be made at demarcation. 25.In my judgment, while relevance is a factor, it is by no means the determining factor. It seems to me that of first importance is the nature of the occasion on which the communication is made, that is, the form of the communication rather than its substance. There is an oblique reference to this principle in Lincoln v. Daniels (supra) where Devlin LJ said (at 259) :
26.With reference to the definition of absolute privilege by Lopes LJ (supra), it is the fact that statements are written or spoken 'in office' or 'in the course of any proceedings before any court recognized by law' that vests those statements with the protection of absolute privilege. That is the matter of first importance. 27.Take, for example, a witness being cross-examined in a trial. What if that witness, perhaps with his case weakening, blurts out something which is irrelevant to the issues involved and constitutes a defamatory remark about his opponent. Is that witness to be open to a claim for defamation? If so, how is a witness to be able to speak freely? How is counsel to be able to cross-examine so that perhaps, by such irrelevant remarks, the weakness of an opponent's case is revealed. Clearly in such an instance the witness is protected by absolute privilege notwithstanding the irrelevancy of the remark or any malice contained in it. 28.The same principle must apply with written communications. Of first importance must be the form of the communication rather than its content; in short, is it written in the course of legal proceedings and in respect of those proceedings? If, despite the existence of those two factors, a communication would be open to a claim for damages in defamation, it would - to employ the words of Lane J in the Ontario Court (General Division) of Canada, Lubarevich v. Nurgitz and Others (1996) Ont. C.J. Lexis 1640 - make 'a potential defendant out of every lawyer writing on a client's behalf'. Lawyers must be able to represent their client's best interests fully and where necessary 'without pulling their punches'. As Lane J said : only an absolute privilege will suffice to enable the lawyer to perform the function assigned to him or her in judicial proceedings under our system of law. 29.Where then is the boundary to be drawn so that on the one side of it the protection of absolute privilege is lost? In my judgment, it is only lost when, in making a statement, written or oral, the statement maker steps outside of the confines of the judicial proceedings and embarks on an independent course of action. 30.That, I am satisfied, accords with long-established principle. See for example Seaman v. Netherclift (1876) 2 CPD (at page 60) in which Bramwell JA said :
31.In respect of written statements, the principle may, I believe, be illustrated in a similar analogy. Assume a solicitor representing a litigant writes to the solicitor for the opposing litigant to demand delivery of overdue pleadings. Assume further that in the letter he writes the following : "I saw you in the changing room of the club last night taking money from clothing that had been left there. You are clearly a thief." That accusation of dishonesty is not made in any way for the purpose of the litigation proceedings. In saying those words, the solicitor is not acting in his capacity as a solicitor for his client, he has done no more than seize the opportunity to make a statement in his private capacity. In so doing - no matter what the heading to the letter may read - he has, in my view, stepped outside of the confines of the proceedings and embarked on an independent course of action, namely, the making of a private accusation. 32.In submitting that the offending letter was not written for the purposes of the legal proceedings, the plaintiff has spread his net wide. The statement in the offending letter, he said, was so plainly without relevance to the conduct of the litigation that it could not be said to be a statement made for the purposes of the proceedings. It was, he argued, an entirely extraneous attack on his character independent of the proceedings. The plaintiff advanced his argument by saying that the statement was made by the author of the letter in a private capacity and not in his or her capacity as a solicitor : this must be so because the statement did not in any way advance the client's case and was irrelevant to it. 33.Can it be said that in making the alleged defamatory statement the defendants stepped outside of the confines of the judicial proceedings and embarked on an independent course of action? The answer requires an examination of the circumstances in which the offending letter came to be written :
34.While I make no comment on the wisdom of the alleged defamatory words, I fail to see how it can be said that, in making them, the defendants stepped outside of the confines of the proceedings and, to use the plaintiff's words, 'made a private attack on his character'. The central matter in issue was the alleged failure of Dolly Dolls, the defendant in the interlocutory proceedings, to file its affirmation or other answer within the allowed time limits. That alleged failure had repercussions in respect of delay and costs. The defendants were attempting on behalf of their client to assume the tactical high ground so that, if an adjournment of the interlocutory hearing was necessary, their client would at least be indemnified in costs. Patently they were seeking the best advantage of their client in the litigation. Whether they were doing so in an exemplary fashion is not to the point. What is to the point is that clearly they were acting in their capacity as solicitors representing their client and equally clearly they were seeking to advance their client's interests in the litigation. 35.I am therefore satisfied that the alleged defamatory statement was written and published not only in the course of the judicial proceedings but for the purposes of those proceedings. Absolute privilege : a consideration of Devlin LJ's first category 36.The first category of absolute privilege which covers proceedings in or before a court of justice, said Devlin LJ :
37.As I understand it, it was the plaintiff's contention that absolute privilege under this first category only comes into being when there is an actual hearing, that is, when the parties are physically coram judice : 'before the court'. Accordingly, documents which are intended to be used in evidence, if published prior to the hearing, are not protected. 38.I can well understand the logic of that contention in the circumstances say of a defamatory document, such as a letter, being circulated to the public or sent to newspapers for publication prior to a hearing. But the plaintiff has based his contention on a more radical premise, namely, that, even if counsel who are to appear and the judge who is to preside see the defamatory document prior to the hearing commencing, they see it devoid of the protection of absolute privilege. 39.It is on this basis that the plaintiff asserts that there was publication of the offending letter to counsel who were to appear at the interlocutory hearing and the judge who was to preside. Publication took place because the offending letter was contained in court bundles sent to counsel and the court. 40.As it was, argued the plaintiff, the interlocutory proceedings were settled. No hearing took place. The contents of the court bundles were, therefore, never put in as evidence. The matter, therefore, was never coram judice. 41.In my judgment, the plaintiff's argument is misconceived. Counsel read the papers prior to the hearing in order properly to make their submissions at the hearing. The judge did the same so that he would be able properly to preside. Such preparation was so integral to the hearing itself that it cannot be divorced from it. Such preparation, to employ the words of Devlin LJ, must be included in 'all matters that are done coram judice'. 42.If it were otherwise it would, in my view, lead to absurdities. A document which could be defamatory, no matter how central to the issue, would have to be withheld from counsel and the judge until the actual hearing commenced. Only then, no matter how much its contents may assist or undermine the purpose for which the hearing has been called, may it be divulged. 43.In the present instance, the fact that the parties reached a settlement in respect of the interlocutory proceedings is of no assistance to the plaintiff. Leaving aside the fact that a consent order was obtained, the reading of papers in the court bundles by counsel and the judge prior to the hearing for the purposes of that hearing were matters done coram judice. As such, the offending letter, which was contained in the court bundles, was published on an occasion of absolute privilege. Absolute privilege : a consideration of Devlin LJ's second category 44.Devlin LJ said that the second category of absolute privilege in judicial proceedings :
45.It is the defendants' case that publication of the offending letter to the assistant solicitor in the employ of the plaintiff and to their own client falls within the contemplation of this second category. Accordingly, both occasions of publication are protected by absolute privilege. 46.The plaintiff contests this on the basis that Devlin LJ's second category extends only to 'all pleadings and other documents' generated for the purposes of the legal proceedings and does not include letters. The plaintiff has argued that 'other documents' includes affidavits, affirmations, statutory forms and the like but does not include letters passing between the legal advisors. Letters generated in the course of litigation and for the purpose of it, while given the protection of qualified privilege, are not afforded the sanctuary of absolute privilege. 47.Strangely, the issue of whether inter partes correspondence in litigation is subject to absolute privilege does not appear to have been authoritatively decided. Mr Chow, for the defendants, has only been able to find two cases in which the issue has been dealt with, both first instance decisions. 48.In my judgment, however, correspondence between legal advisors is essential to the efficient, economic and timely resolution of judicial proceedings. Taxing masters allow a great deal of such correspondence because they understand that it plays an integral part in the management of litigation. Correspondence is regularly shown to courts when questions of costs are advocated. A letter concerning overdue pleadings may avoid the necessity of an application to court with its consequent explosion in costs. Litigation correspondence is not a luxury, it is not 'an optional extra', it is an essential element in the professional conduct of litigation. I am satisfied that it is, therefore, contemplated in Devlin LJ's second category of absolute privilege as being, in addition to affirmations, statutory forms and the like, a form of document brought into existence for the purpose of the proceedings. 49.The authors of Gatley on Libel and Slander, 9th Edition (at page 284) say that the protection of absolute privilege :
50.As I have said, litigation correspondence is 'practically necessary' for the professional conduct of litigation and therefore for the administration of justice. It is not merely convenient. 51.The common sense requirement of looking to what is 'practically necessary' is to be found again in the dicta of Devlin LJ in Lincoln v. Daniels (supra) where (at 263) he spoke of Lord Halsbury's speech in Watson v. M'Ewan [1905] AC 480 :
52.The first of the two authorities referred to by Mr Chow is the decision of French J in Waple v. Surrey County Council [1997] 2 All ER 836. The headnote says that where, in the course of legal proceedings, the solicitor for one party requests the solicitor for the other party for information regarding the case which his client will advance, the answer given is given on an occasion of absolute privilege. This decision at first instance was overturned on appeal (see Waple v. Surrey County Council (supra, in paragraph 13) but it was overturned on the grounds that the correspondence had not taken place in the course of judicial proceedings. The Court of Appeal does not appear to have considered the issue of whether correspondence between solicitors fell within the contemplation of Devlin LJ's second category even though Lincoln v. Daniels and Devlin LJ's dicta in respect of absolute privilege was central to its decision. 53.The second of the two authorities to which Mr Chow made reference is the Canadian decision of Lubarevich v. Nurgitz and Others (supra, paragraph 28) in which the court had no difficulty in finding that a solicitor's letter written in the course of litigation and for the purpose of it may be absolutely privilege. In particular, Lane J, referring to earlier Canadian and United States authorities indirectly on point, said :
54.From a reading of the two judgments cited by Mr Chow, the fact that the document in issue was a letter does not appear to have raised any concerns : in my view, a telling point in itself 55.I am therefore satisfied that inter partes correspondence generated in the course of judicial proceedings and for the purposes of those proceedings is, together with all pleadings and other forms of documentation, protected by absolute privilege. Sending copies of correspondence to client 56.The plaintiff has argued that, even if correspondence directly between solicitors may be protected by absolute privilege, that protection should not be extended to copies of letters sent by solicitors to their clients. Such a course, said the plaintiff, is not practically necessary for the conduct of the legal proceedings. Such copied correspondence should only be afforded the lesser protection of qualified privilege. 57.I cannot agree. The clients are the ones conducting the litigation. It is their litigation. They are entitled to know what is being done and said on their behalf. I would imagine, in fact, that a duty rests on solicitors to keep their clients appropriately advised. Some clients may insist on exhaustive referral, others may be less insistent. But I would be loath, by the vehicle of this judgment, to attempt to curtail the entitlement of litigants to know exactly what is being done on their behalf. 58.I am satisfied, therefore, that lawyers' correspondence brought into existence for the purpose of judicial proceedings (and therefore falling into Devlin LJ's second category) includes copies of that correspondence published to the litigants themselves. 59.In light of the findings I have made concerning correspondence arising out of judicial proceedings being copied to the litigants, it is not necessary to consider the far broader question of the privilege that attaches in any event to communications that pass between solicitors and their clients. However, in so far as those communications are generated by legal proceedings (as in the present case), I would adopt the dicta of Scrutton LJ in More v. Weaver [1928] 2 KB 520 (521) as being the appropriate principle of jurisprudence :
A licence to allow scurrilous correspondence ... 60.In his submissions, the plaintiff argued with conviction that if absolute privilege was 'extended' to cover litigation correspondence between solicitors, it would, in some quarters, be seen as a licence to allow scurrilous, coarse, abusive and otherwise inappropriate language. I was urged 'to think twice' before allowing such licence. With respect to the plaintiff, that ignores two cogent factors. First, solicitors are members of a profession who, by the dictates of their own integrity, are obliged to avoid the use of such language. Invariably, while holding steadfast to the best interests of their clients, solicitors do exactly that. Second, if occasionally the language employed by solicitors is objectively unbefitting, there are sanctions to be applied in the form of censure by the courts, costs and, if necessary, the profession's own disciplinary bodies. Conclusion 61.For the reasons given in this judgment, I am satisfied that the three occasions on which the offending letter was published are each occasions of absolute privilege. That being so, whether the words contained in the letter are defamatory or not, they cannot be the subject of the plaintiff's action. 62.The plaintiff, in his pleadings, alleges no other occasions of publication. The action must therefore be dismissed. 63.I can see no reason why costs should not follow the event. I make an order nisi that costs of the action are awarded to the defendants, that order to be made final within 30 days of the date of handing down of this judgment unless a prior application is made to seek a different order.
Representation: The Plaintiff in person, present Mr Andersen Chow, instructed by Messrs Herbert Smith, for the Defendants Remarks: |
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