The Supreme Court decision in George v Cannell [2024] UKSC 19 clarifies the scope of malicious falsehood claims under the Defamation Act 1952. The ruling by the Court pays particular attention to Section 3 (1) of the Act, clarifying that in the action of defamation, the claimant should pay attention to whether they suffered actual financial loss and damages. Otherwise, even if the court rules in favour of the claim, they may only be awarded nominal damages.
Background
In this case, the claimant Fiona George sued her former employer, Linda Cannell, and her company, LCA Jobs Ltd, for defamation and malicious falsehood through making false statements. The recruitment agency alleged that the claimant was in breach of contract by actively targeting LCA’s clients.
Decision
In the High Court it was decided that the statements made were false and malicious due to Linda Cannell not believing the statements to be true. However, the issues in the appeal to the Supreme Court were whether the claimant was entitled to damages for injury to feelings in case of the lack of financial loss.
In the Supreme Court’s ruling, the court addressed the following issues :-
- The presumption of financial loss is irrebuttable. The court considered that section 3(1) of the Defamation Act recreates an irrebuttable presumption of financial loss. There is no need for the claimant to prove the actual financial loss to succeed in the claim for nominal damages.
- Damages for injury to feelings. The court differentiated between nominal damages and damages for injury to feelings. The court held that the claimant had to prove the substantial financial loss before she could recover the damages for injury to feelings. As the claimant failed to prove that she suffered substantial financial loss, her claim for damages for injury to feelings failed.
Our thoughts
The Supreme Court ruling provides a clear interpretation of the malicious falsehood claims under the Defamation Act 1952, particularly concerning the requirement to prove financial loss and the conditions for awarding damages. It also highlights the importance of providing evidence when substantiating claims for financial loss and emotional distress. It is likely that this will set a precedent for future claims in the years to come.
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