Case Law[2022] ZACC 38South Africa
Reddell and Others v Mineral Sands Resources (Pty) Ltd and Others (CCT 67/21) [2022] ZACC 38; 2023 (2) SA 404 (CC); 2023 (7) BCLR 830 (CC) (14 November 2022)
Constitutional Court of South Africa
14 November 2022
Headnotes
Summary: Defamation — constitutionality of awarding general damages to trading corporations — partially unconstitutional — public discourse on issues of public interest
Judgment
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## Reddell and Others v Mineral Sands Resources (Pty) Ltd and Others (CCT 67/21) [2022] ZACC 38; 2023 (2) SA 404 (CC); 2023 (7) BCLR 830 (CC) (14 November 2022)
Reddell and Others v Mineral Sands Resources (Pty) Ltd and Others (CCT 67/21) [2022] ZACC 38; 2023 (2) SA 404 (CC); 2023 (7) BCLR 830 (CC) (14 November 2022)
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sino date 14 November 2022
CONSTITUTIONAL
COURT OF SOUTH AFRICA
Case
CCT 67/21
In
the matter between:
CHRISTINE
REDDELL
First Applicant
TRACEY
DAVIES
Second Applicant
DAVINE
CLOETE
Third Applicant
MZAMO
DLAMINI
Fourth Applicant
CORMAC
CULLINAN
Fifth Applicant
JOHN
GERARD INGRAM
CLARKE
Sixth Applicant
and
MINERAL
SANDS RESOURCES (PTY) LIMITED
First Respondent
MINERAL
COMMODITIES
LIMITED
Second Respondent
ZAMILE
QUNYA
Third Respondent
MARK
VICTOR
CARUSO
Fourth Respondent
Neutral
citation:
Reddell
and Others v Mineral Sands Resources (Pty) Ltd and Others
[2022]
ZACC 38
Coram:
Kollapen J, Madlanga J, Majiedt J, Mathopo J, Mhlantla J,
Mlambo AJ, Theron J, Tshiqi J and Unterhalter AJ
Judgments:
Majiedt J (majority): [1] to [152]
Unterhalter
AJ (dissenting): [153] to [210]
Heard
on:
17 February 2022
Decided
on:
14 November 2022
Summary:
Defamation — constitutionality of awarding general damages
to trading corporations — partially unconstitutional —
public discourse on issues of public interest
Section
16 of the Constitution — section 10 of the Constitution —
common law right to reputation
ORDER
On
direct appeal from the High Court of South Africa, Western Cape
Division, Cape Town:
1.
Leave to appeal directly to this Court is granted.
2.
The appeal is upheld to the extent that it is declared that, save for
where the speech forms
part of public discourse on issues of public
interest, and at the discretion of the court, trading corporations
can claim general
damages for defamation.
JUDGMENT
MAJIEDT J
(Madlanga J, Mathopo J, Mhlantla J, Mlambo AJ, Theron J and Tshiqi J
concurring):
Introduction
“
T
he
preoccupation of [the] law of defamation with damages has been a
crippling experience over the centuries. The damages remedy
is not
only singularly inept for dealing with, but actually exacerbates, the
tension between protection of reputation and freedom
of expression,
both equally important values in a civilised and democratic
community. A defamed plaintiff has a legitimate claim
to vindication
in order to restore his damaged reputation, but a settlement for, or
even an award of damages, is hardly the most
efficient way to obtain
that objective.”
[1]
[1]
There
is much debate generally around damages awards as solace for injured
feelings, particularly in respect of defamation.
[2]
This case is about a narrower issue, whether a trading corporation
[3]
ought to be able to sue for
general
damages in a defamation suit and, if so, whether it ought to be able
to do so without having to allege or prove—
(a)
the falsity of the impugned statement;
(b)
the wilfulness of the false statement; and
(c)
that it suffered any patrimonial loss.
[2]
As will appear, the case condensed
even further at the hearing. The only issue before us is the
alternative claim that, in the event
that a trading corporation has
remedies in defamation available without pleading the aforementioned
requirements, those remedies
do not include a claim for general
damages. A related issue is the claim that, to the extent that the
common law was not consonant
with this contention, it is
unconstitutional and falls to be developed in terms of sections 8(2)
and 39(2) of the Constitution.
[3]
This
case originates from three defamation suits instituted by the present
respondents – Australian mining companies –
and some of
their executives, as plaintiffs in the High Court of South Africa,
Western Cape Division, Cape Town (High Court).
The defendants
in the suits are the present applicants and are environmental lawyers
and activists. For ease of reference,
the parties will be referred to
as they are in this Court, although the context may sometimes
require reference to them as
they were in the High Court.
[4]
The parties may, from time to time, also be referred to as
“the mining companies” or “the mining
executives”
(plaintiffs/respondents) and
“the environmentalists” (defendants/applicants).
[4]
The
three defamation actions emanated from various allegedly defamatory
statements made by the environmentalists. The claims in
the actions
total in excess of R14 000 000. In response to the
defamation actions, the defendants raised two special pleas
in
each of the actions that elicited exceptions from the plaintiffs.
This matter concerns the second set of exceptions that became
known
as the “corporate defamation defence special plea”.
[5]
In essence, that exception entails a contention by the plaintiffs
that the corporate defamation special plea of the defendants
did not
give rise to any defence in our law.
This
case does not deal with the mining executives’ personal rights
as natural persons to sue for general damages for the
alleged
defamatory statements, but with the defamation claims of the mining
companies (hence the distinction between “the
mining companies”
and “the mining executives” in the nomenclature).
[5]
The
High Court heard the two exceptions together.
[6]
It upheld the mining companies’ exception to the corporate
defamation special plea on the basis that the Court
was bound by
the precedent of the Supreme Court of Appeal in
SA Taxi,
where
it was decided that a trading corporation can sue for general damages
for defamation.
[7]
This
application for leave to appeal directly to this Court, thus
bypassing the Supreme Court of Appeal, is based on the fact that
only
this Court can overrule the decision in
SA Taxi
.
Background
[6]
The plaintiffs are engaged in
extensive mining operations
in the exploration and development
of major mineral sands projects in South Africa, namely the
Tormin Mineral Sands Project
and the Xolobeni Mineral Sands
Project.
There appears to be fierce community
opposition to these mining activities and the defendants are
apparently at the forefront of
that opposition. In the course of this
opposition, the defendants are alleged to have made statements
which are defamatory
of the plaintiffs.
[7]
The first to third applicants made the
alleged defamatory statements as presenters of a lecture series
at the University of Cape Town,
concerning the
respondents’ Tormin mining project, entitled “
Mining
the Wild and West Coast: ‘Development’ at what cost?”.
The alleged defamatory statements concern claims
of the duplicitous
and unlawful nature of the mining operations which were said to be
ravaging the environment. The claims against
them total R1 250 000.
[8]
T
he fourth and fifth applicants
participated in a radio interview in which the present fourth
respondent (the second plaintiff in
the High Court) was also a
participant. The interview was posted on the radio station’s
website. The fourth and fifth applicants
discussed the mining
activities, expressed certain contentious opinions and trenchantly
criticised the plaintiffs’ mining
operations. They were sued
for a total of R3 000 000.
[9]
Lastly,
in respect of the sixth applicant, the alleged defamatory statements
appeared in: two e-books
[8]
published by him; several of his radio interviews;
video
clips posted by him on YouTube; numerous emails that he had written;
and a number of his interviews published on various social
media
platforms online. He also participated in a panel discussion relating
to mining and mineral regulation issues, on a television
programme
known as 50/50; posted an article on an online journalism platform
called
Medium
,
entitled “Behind the Irony Curtain: Blood Diamond, Xolobeni and
the Real Story of MRC”;
[9]
and engaged in general advocacy around environmental issues. In the
end, the plaintiffs instituted 27 defamation claims against
him
totalling R10 000 000.
[10]
The plaintiffs sought damages for
the alleged defamation, alternatively, public apologies. The
defendants’ corporate defamation
defence special plea was that
a trading corporation has no remedy available to it in relation to
defamation without alleging and
proving that the defamatory
statements concerned—
(a)
are false;
(b)
were made wilfully; and
(c)
caused it to suffer patrimonial loss.
[11]
Secondly, and in the alternative,
the defendants pleaded that in the event that a trading corporation
had remedies in defamation
available without pleading falsity,
wilfulness and patrimonial loss, those remedies do not include a
claim for general damages.
Lastly, it was pleaded that to the extent
that the common law was not consonant with these two contentions, it
is unconstitutional
and falls to be developed in terms of
sections 8(2) and 39(2) of the Constitution. As stated, the
plaintiffs excepted successfully
to this second set of special pleas,
on the basis that no defence of this type exists in South African
law.
Parties’
submissions
The applicants’
principal submissions
[12]
On jurisdiction and leave to appeal, the applicants submit
that
when a substantive exception is upheld, it is
always appealable where prospects of success are established. They
contend that, if
leave to appeal is not granted, the High Court’s
order upholding the second set of exceptions will stand and the
plaintiffs
will be allowed to proceed with their substantial claims
in general damages without pleading or proving falsity, wilfulness or
patrimonial loss. Since the Supreme Court of Appeal has already
spoken on this matter in
SA Taxi,
it would be bound by its own decision
if direct leave to appeal is refused and the matter is referred to
that Court. The applicants
contend that the matter transcends the
parties’ narrow interests and is plainly of considerable
importance, not only to the
parties, but also to the broader public.
They submit that leave to appeal ought therefore to be granted.
[13]
On
the merits, the applicants contend that if the common law allows
trading corporations to succeed in a defamation claim for general
damages without meeting these requirements, it is unconstitutional.
This is because, so they argue, allowing defamation claims
for
general damages imposes significant restrictions on the right to
freedom of expression in the Constitution. This is constitutionally
permissible in the case of plaintiffs who are natural persons, since
they are the bearers of the constitutional right to human
dignity and
the principles of defamation law strike an “appropriate
balance” between the competing constitutional rights
to human
dignity and freedom of expression. But not so with trading
corporations that sue for defamation.
The applicants
submit that they are not bearers of the constitutional right to human
dignity. Furthermore, the interest of
trading corporations in their
reputation is not personal, but purely financial. In those
circumstances, the Constitution demands
that if a trading corporation
is entitled to sue for general damages for defamation at all, it must
be held to the same demanding
requirements as when it sues for the
delict of injurious falsehood.
[10]
As a result, the applicants contend that the trading corporation must
allege and prove that the statements are false, that the
false
statements were made wilfully and that the false statements caused
patrimonial loss.
[14]
According to the applicants, the
majority in
SA Taxi
was wrong in upholding a claim for general damages by a trading
corporation, as that claim does not meet the principles outlined.
Thus, insofar as the common law in terms of
SA Taxi
equates the position of trading corporations with that of natural
persons, it is unconstitutional. This Court should thus
overrule
SA Taxi
.
In the event that this Court concludes that
SA Taxi
was correctly decided, the common law must be developed, in
accordance with sections 8(3) and 39(2) of the Constitution, in
order to address this violation of the right to freedom of
expression. Restricting trading corporations to claims for injurious
falsehoods would be a more appropriate balance, different to the law
of defamation as it applies to natural persons. The requirements
that
a trading corporation prove falsity of the statement, wilfulness and
that it had suffered patrimonial loss, achieves this
balance.
[15]
The
applicants contend further that the majority in
SA Taxi
erred in its finding that treating trading corporations differently
to natural persons would violate section 9(1) of the
Constitution. The differences between trading corporations and
natural persons not only permit, but require, different treatment
in
the law of defamation. Juristic persons are not bearers of the right
to human dignity and thus cannot lay claim to constitutional
protection on the basis of the right to human dignity under
section 10 of the Constitution.
[11]
[16]
They
contend further that when one considers the nature of the right to
dignity and the nature of trading corporations, it is abundantly
clear that they cannot be the bearers of the right to human dignity.
A trading corporation only has a financial interest in its
reputation, that is, goodwill (its capacity to attract customers and
make a profit). If its reputation is damaged, the damage ordinarily
diminishes its capacity to attract customers and make profit. A
trading corporation has no feelings that can be injured.
[12]
Thus, there are no competing constitutional rights at stake here and
the principles enunciated in
Khumalo
,
[13]
where there was a weighing up of the competing rights to human
dignity and freedom of expression, do not find application. Thus,
contend the applicants, the majority judgment in
SA
Taxi
was wrongly decided and that decision ought to be overruled.
[17]
The applicants further argue that
the common law rules in respect of claims for general damages for
defamation by trading corporations
are unconstitutional. They submit
that a justification analysis in terms of section 36(1) of
the Constitution demonstrates
that the limitation of the section
16 right to freedom of expression is unjustified and that the common
law must be developed.
The common law can be developed in one of two
ways, according to the applicants. First, by providing that in any
claim of any sort
for defamation by a trading corporation, it must
allege and prove falsity, wilfulness and patrimonial loss. Second,
and in the
alternative, it could be developed to provide that where a
trading corporation does not allege and prove falsity, wilfulness and
patrimonial loss, it is precluded from claiming general damages.
Finally, with reference to various international and comparative
law
sources, the applicants contend that various other democratic
societies have recognised the need to limit trading corporations’
ability to sue for defamation and that legal commentators largely
support these restrictions.
The
respondents’ principal submissions
[18]
The respondents accept that the
application raises constitutional issues, but contend that those
issues have already been determined
and, therefore, do not require
the attention of this Court. The respondents, thus, contend that the
appeal bears no reasonable
prospects of success and, as a result, it
is not in the interests of justice to grant leave. The respondents
argue that the debates
which the applicants seek to raise were, to a
large extent, comprehensively dealt with by the Supreme Court of
Appeal in
SA Taxi
and, on that authority, the appeal bears no prospects of success.
[19]
In
respect of the merits, according to the respondents, the cumulative
impact of both special pleas before this Court must be considered.
If
the defendants succeed in defending both their special pleas, then
businesses operating as juristic persons in South Africa
will be
faced with three challenging hurdles which will inhibit business
enterprise and discourage foreign and local investment
in this
country. These hurdles are: first, proof of an absence of ulterior or
improper motive in suing for defamation (this relates
to the
so-called “SLAPP” defence special plea in CCT 66/21);
second, proof that the defamatory statement is false
and that it was
made wilfully, that is, with the intent to defame;
[14]
and third, and possibly the most difficult requirement, proof that
the defamatory statement caused financial loss. The last of
these is
said to potentially be the most difficult, because an injury to the
reputation of a trading company will not always be
measurable in
terms of lost profits
.
[15]
[20]
The respondents caution that there are four
troubling features of the drastic reforms to the common law proposed
by the applicants.
First, there has been a marked increase in the
irresponsible spreading of fake news through social media platforms,
which has become
one of the most significant threats to democracy and
the search for truth in open societies. The respondents therefore
argue that,
if it is made
virtually impossible for trading
corporations to sue for defamation in such circumstances, it will
become far too easy for conveyors
of conspiracy theories and other
fake news to harm our democracy and undermine an important object of
the protection of freedom
of expression, which is the pursuit of
truth.
[21]
Second,
the respondents contend that the applicants’ approach draws no
distinction between for-profit and not for-profit companies.
It would
be severely detrimental to the latter to apply this approach to them,
as any damage to their reputation could be devastating.
Third, the
respondents submit that there is no evidence that claims for general
damages by trading corporations have proliferated
in recent times.
Trading corporations face additional obstacles their claim is
restricted to an injury to reputation (
fama
).
That reputation must first be established, it must then be shown that
it is likely that the statement will harm their reputation,
and it
must be shown that it is more probable than not that harm will occur,
and not a mere tendency or propensity to harm. Fourth,
and finally,
as far as the alleged need to plead and prove falsity is concerned,
the respondents submit that this issue was comprehensively
addressed
by this Court in
Khumalo.
In that
case it was held that the defence of reasonable publication,
developed by the Supreme Court of Appeal in
Bogoshi
,
[16]
saved the common law from invalidity and resulted in an appropriate
balance between the interests of a plaintiff and a media defendant
in
defamation cases. The extension of that defence to non-media
defendants would address the concerns raised by the applicants
in the
present matter. That is the development of the common law for which
the applicants should instead be advocating for, and
not the drastic
reforms now being espoused.
[22]
The
respondents also point out certain anomalies in the applicants’
case. They say that those anomalies arise because the
applicant’s
case – that it is an unjustifiable limitation of the right to
freedom of expression to equate the right
of trading corporations to
sue for general damages for defamation to that of natural persons –
rests on two faulty pillars.
The first is
that
a narrowly defined human dignity is the only basis on which the
limitation of freedom of expression inherent in the law of
defamation
can be justified. That is not so – reputation (
fama
,
as distinct from
dignitas
)
justifies such a limitation as well. Reputation finds a
constitutional home in the wider approach to human dignity
adopted
by this Court, contend the respondents.
[17]
Trading corporations have a right to their reputation, worthy of
constitutional protection even though they do not have
dignitas
,
that is narrow dignity in the sense of self-worth.
[23]
The second faulty pillar is that the
applicants contend that the interest a trading corporation has in its
reputation can always
be vindicated by an action for special damages.
This is not so, submit the respondents, because the value of a
trading corporation’s
reputation for its profits may be
intangible. It is not easily quantifiable. To restrict corporations
who wish to vindicate their
reputations to instances where they can
prove financial loss will, in some instances, deprive them of a
remedy altogether. The
alleged differences between trading
corporations and natural persons, for which the applicants contend,
do not justify the drastic
developments which they advocate, and they
fail to strike an appropriate balance between the competing rights at
stake here.
[24]
The
respondents submit that there is a long line of cases in which our
courts established that there is no difference between the
defamation
claims made by natural and juristic persons, from the
obiter
dictum
in
Fichardt
,
[18]
to the
rationes decidendi
in
Dhlomo
[19]
and
SA Taxi
.
[20]
Strong reliance is placed on the majority judgment in
SA Taxi,
penned
by Brand JA, a matter to be presently discussed in some
detail.
[21]
In any event,
contend the respondents, the references in
SA
Taxi
as
to the requirements of the
Aquilian action
and those relating to the claim for injurious falsehood are entirely
irrelevant in this matter.
[25]
The
respondents point out that the minority judgment of Nugent JA in
SA Taxi
is no authority for the contention that a trading corporation should
plead and prove the falsity and wilfulness of a defamatory
statement
in a defamation claim. It relates only to the remedy of general
damages. They assert that the majority decision is unassailable
and
that the applicants’ proposition to have additional obligations
imposed on trading corporations or to have their remedies
limited in
the manner that the applicants propose (in a manner akin to the
lex
Aquilia
or
the delict of injurious falsehood), is inconsistent with our law.
International and comparative law support that majority judgment.
[22]
The corporate defamation special plea is, therefore, excipiable as
the High Court correctly held pursuant to the binding authority
of
SA Taxi
.
In order for the applicants to succeed, this Court will have to adopt
the developments of the common law for which they contend.
As to the
proposed development of the common law, the respondents reiterate
that the majority in
SA Taxi
was correct in rejecting the drastic development
[23]
proposed by the applicants and the United Kingdom judgments in
Steel
and Morris
and
Jameel
confirm this.
Jurisdiction and leave to
appeal
[26]
For leave to appeal to be granted in this Court, an applicant
must meet two requirements. First, the matter must fall within the
jurisdiction of this Court in that it raises a constitutional issue
or an arguable point of law of general public importance; and
second,
the interests of justice must warrant that leave to appeal be
granted.
[27]
This
Court’s constitutional jurisdiction is plainly engaged. The
matter concerns the balance to be struck between the right
to freedom
of expression in section 16 of the Constitution
[24]
and a trading corporation’s right to its reputation. A
defamation action implicates these two rights. As will be more fully
explicated, the one is a constitutional right, freedom of
expression, and the other emanates from the common law, that
is
the right to reputation. Where the law renders defamation actionable
and compensable, it plainly entails a limitation to freedom
of
expression.
[25]
In addition,
the application raises important issues as to
the
development of the common law in accordance with sections 8(3)
and 39(2) of the Constitution. The applicants seek the development
of
the common law to disallow trading corporations an action in
defamation for general damages so as to promote the right of freedom
of expression. This development entails, in the first place,
restricting trading corporations to an action for defamation only
in
instances where it meets the requirements for injurious falsehood. In
the alternative, the development entails preventing trading
corporations from ever receiving general damages for defamation.
[28]
Furthermore, the questions posed in this application raise
arguable points of law of general public importance, particularly
considering
the two divergent judgments in
SA Taxi
as to
the appropriateness of awarding general damages to trading
corporations in defamation cases. Additionally, the ancillary
question of the applicability of the right to human dignity to
trading corporations bears consideration. I am also satisfied that
the application bears reasonable prospects of success and that the
importance and nature of the issues raised demonstrates that
the
matter transcends the narrow interests of the parties. Therefore, the
constitutional and general jurisdiction of this Court
is engaged.
[29]
But should leave to appeal directly to this Court be
granted? Direct appeals to this Court are permitted only in
exceptional instances.
As stated, the Supreme Court of Appeal has
already, in
SA Taxi,
decided the central issue in this case.
That Court
would be bound by its own decision if
direct leave to appeal were refused and the matter were to be
referred to it. While the Supreme
Court of Appeal may, by virtue of
the doctrine of precedent,
reverse its
SA Taxi
decision,
the matter would, in all likelihood, end up in this Court. Since
we have the benefit of the views already expressed
in
SA Taxi
,
the interests of justice require that this Court finally determine
the matter.
[30]
As indicated above, the matter is
plainly of considerable importance both to the parties in the matter
and to the broader public.
This is so because
awarding general
damages to trading corporations for defamation may potentially
shackle public participation, particularly in environmental
matters,
where meaningful public participation is required. That is
indisputably a matter of general public importance. In
Khumalo
this Court granted leave to appeal directly to it. In granting
leave, this Court held that:
“
The extent to
which the Constitution requires a development of the law of
defamation is a question which has been frequently asked.
The issue
was raised but not answered in an early decision of this Court,
Du
Plessis and Others v De Klerk and Another
[1996] ZACC 10
;
1996
(3) SA 850
(CC)
(1996 (5) BCLR 658)
and has been considered in a
considerable number of High Court judgments since. It is also a
matter which has received the attention
of the Supreme Court of
Appeal in
National
Media Ltd v Bogoshi
and has also troubled courts in many other jurisdictions. In all
these circumstances, therefore, it seems that it would be in the
interests of justice for this Court to consider the appeal. The
application for leave to appeal is therefore granted.”
[26]
[31]
While
Khumalo
settled
the
position as regards the intersection between the law of defamation
and the constitutional right to freedom of speech insofar
as it
relates to plaintiffs that are natural persons, the position in
respect of plaintiffs that are trading corporations remains
contested, particularly in light of the divergent decisions in
SA Taxi
.
These considerations strongly support the grant of direct access to
this Court.
[32]
The
next question concerns appealability. In
Zweni,
the
Supreme Court of Appeal held that
decisions
that can be appealed must have the following three attributes: they
must be final in effect and not susceptible of alteration
by the
court of first instance; they must be definitive of the rights of the
parties; and they must have the effect of disposing
of a substantial
portion of the relief claimed.
[27]
However,
where an exception is not upheld, an appeal will not lie because it
does not meet the criteria enumerated in
Zweni
.
[28]
Previously, the Supreme Court of Appeal has pertinently declined to
reconsider the question of the appealability of decisions dismissing
exceptions.
[29]
But when a
substantive exception is upheld as is the case here, this is usually
appealable where prospects of success are established.
[30]
As stated, there are reasonable prospects of success here. This set
of exceptions plainly raise questions concerning the constitutional
validity of the common law of defamation, as was the case in
Khumalo
.
Therefore,
in considering and then dismissing the applicants’ contentions,
the High Court was clearly concerned with
a constitutional
matter and its order constitutes a decision on such a matter as
contemplated by rule 19 of the Rules of this Court.
[31]
Leave to appeal directly to this Court ought therefore to be granted.
Preliminary
remarks on the applicants’ case
[33]
At the hearing, the applicants’ case took an unexpected
turn which significantly altered the course of the matter and
considerably
narrowed the issues. It will be recalled that the
applicants initially contended that the common law enabling
for profit companies
to sue for general damages without alleging
and proving falsity, wilfulness and patrimonial loss unjustifiably
limits a defendant’s
right to freedom of expression. This
position was abandoned at the hearing and the applicants only
persisted with their alternative
claim on the constitutionality of
awarding general damages to trading corporations in defamation cases.
[34]
The applicants no longer pursue their further special plea
because they conceded that a trading corporation may pursue a
defamation
action in the ordinary way and seek remedies other than
general damages. This means that the applicants no longer contend
that
a trading corporation must plead that the defamatory statements
were false, made wilfully and caused patrimonial loss. They also
appear to accept that a trading corporation has a reputation to
defend and that its reputation is not simply commercial goodwill
which, if sullied, requires the trading corporation to sue under the
actio legis Aquiliae
for patrimonial loss. Thus,
they appear to accept that a trading corporation may defend its
reputation by suing in the ordinary
way for defamation and seek
declaratory relief and also an apology.
[35]
It is necessary to interpose briefly to discuss the
applicants’ now abandoned submission that trading corporations
should
be restricted to a claim for injurious falsehood (sometimes
referred to as untrue disparagement) to protect their reputation. In
this way, so the applicants contended, a more appropriate balance is
struck between the interests of natural persons and trading
corporations in respect of defamation. This contention self-evidently
fell flat when the applicants abandoned their initial submission
that
trading corporations must prove falsity, wilfulness, and patrimonial
loss. But there is, in any event, a serious difficulty
with that
approach.
[36]
Injurious
falsehood is concerned with lost customers and patrimonial loss. As
the respondents point out, that type of claim forms
part of the
delict of unlawful competition, which is not what this case is about.
One of that delict’s principal features
is that it consists of
non-defamatory statements.
[32]
In practice, its most important appearance is in the form of passing
off.
[33]
Injurious falsehood
is an inappropriate remedy for harm to a trading corporation’s
reputation. Nothing more needs therefore
to be said about this.
Personality infringement and loss that is not patrimonial in nature
can conceivably exist without injured
feelings, an aspect to be
considered next.
[37]
In
light of the above, this Court thus only has to answer the question
of the constitutionality of awarding general damages to trading
corporations in defamation cases. In addressing the issues before
this Court, the following matters will be discussed. First, I
will
set out the present state of our common law of defamation. Second,
the constitutionality of awarding general damages to trading
corporations in defamation cases will be assessed. In light of the
fact that the allegation is that this practice infringes section
16
of the Constitution, a determination will be made on whether there is
a limitation and, if there is, a section 36 analysis will
be
conducted to determine whether the limitation is reasonable and
justifiable in an open and democratic society. Under that rubric,
I
will also discuss the applicability of the right to dignity of
trading corporations. This discussion is particularly important
because dignity plays a central role in this case. Additionally, it
is important because this Court has repeatedly grounded
our law
of defamation solely on a plaintiff’s dignity, the right to
self-worth, a good name and reputation.
[34]
Third, I will consider comparative and international law, whereafter
I will provide my conclusion.
The
state of our common law of defamation
[38]
The intentional infringement of personality rights, such as
the right to a good name and reputation, is addressed in our law by
the
actio iniuriarum
. In
Dikoko
, this Court
expressed it thus:
“
The law of
defamation is based on the
actio
injuriarum
,
a flexible Roman-law remedy which afforded the right to claim damages
to a person whose personality rights had been impaired by
another.
The action is designed to afford personal satisfaction for an
impairment of a personality right and became a general remedy
for any
vexatious violation of a person’s right to his dignity and
reputation.”
[35]
[39]
This
Court has consistently applied the common law of defamation.
[36]
In
Khumalo
this Court held that:
“
At common law, the
elements of the delict of defamation are:
(a)
the wrongful and
(b)
intentional
(c)
publication of
(d)
a defamatory statement
(e)
concerning the plaintiff.
It is not an element of
the delict in common law that the statement be false. Once a
plaintiff establishes that a defendant has
published a defamatory
statement concerning the plaintiff, it is presumed that the
publication was both unlawful and intentional.
A defendant wishing to
avoid liability for defamation must then raise a defence which rebuts
unlawfulness or intention. Although
not a closed list, the most
commonly raised defences to rebut unlawfulness are that the
publication was true and in the public
benefit; that the publication
constituted fair comment and that the publication was made on a
privileged occasion. Most recently,
a fourth defence rebutting
unlawfulness was adopted by the Supreme Court of Appeal in
National
Media Ltd and Others v Bogoshi
.”
[37]
[40]
The
Court noted that “[t]his fourth defence for rebutting
unlawfulness, therefore, allows media defendants to establish that
the publication of a defamatory statement, albeit false, was
nevertheless reasonable in all the circumstances”.
[38]
In our law that defence is not available to non-media defendants.
[39]
Khumalo
concerned the constitutionality of our common law of defamation as it
applied to natural person plaintiffs and media defendants.
The Court
was required to answer the question whether—
“
to
the extent that the law of defamation does not require a plaintiff in
a defamation action to plead that the defamatory statement
is false
in any circumstances, the law limits unjustifiably the right to
freedom of expression as enshrined in section 16
of
the Constitution.”
[40]
[41]
In that case, Mr Bantubonke Holomisa, a
well-known South African politician, and the leader of a political
party, sued the publishers of the
Sunday World
for defamation
for an article published in that newspaper. In the article it was
stated, amongst other things, that Mr Holomisa
was involved with a
gang of bank robbers and that he was under police investigation for
this involvement.
[42]
This
Court held that there can be “no doubt” that the law of
defamation limits section 16 of the Constitution.
[41]
The Court, mindful that there were two competing constitutional
rights involved in the case, namely the right to dignity (enjoyed
by
the defamed politician) and the right to freedom of expression (held
by the media company), stated that:
“
When
considering the constitutionality of the law of defamation,
therefore, we need to ask whether an appropriate balance is struck
between the protection of freedom of expression on the one hand, and
the value of human dignity on the other.”
[42]
[43]
This Court answered the question
before it – that is whether the burden and difficulty of
proving truth or falsity made the
common law of defamation
unconstitutional, as far as media defendants are concerned –
holding:
“
At the heart of
the constitutional dispute lies the difficulty of establishing the
truth or falsehood of defamatory statements.
Burdening either
plaintiffs or defendants with the onus of proving a statement to be
true or false, in circumstances where proof
one way or the other is
impossible, therefore results in a zero-sum game. Either plaintiffs
will benefit from the difficulties
of proof, as happened previously
under common law rules; or defendants will win, as the applicants
propose. Such a zero-sum result,
in whomsoever’s favour, fits
uneasily with the need to establish an appropriate constitutional
balance between freedom of
expression and human dignity.
Were the Supreme Court of
Appeal not to have developed the defence of reasonable publication in
Bogoshi
’s
case, a proper application of constitutional principle would have
indeed required the development of our common law to
avoid this
result
.
”
[43]
[44]
It is therefore plain that this Court adopted the view that
the law of defamation as it applied to media defendants, absent the
reasonable publication defence developed in
Bogoshi
, was
unconstitutional on account of the burden and difficulty (sometimes
impossibility) of having to prove truth or falsity. It
is further
clear that this Court considered the unconstitutionality to have
been remedied or cured by the reasonable publication
defence
developed in
Bogoshi
. As stated above, the reasonable
publication defence only applies to media defendants. But here we are
dealing with defamation
cases instituted by juristic persons, more
particularly trading corporations, against non media defendants.
[45]
In
Le Roux
, this Court outlined the defences available
to a non-media defendant in a defamation action:
“
[T]he plaintiff
does not have to establish every one of these elements in order to
succeed. All the plaintiff has to prove at the
outset is the
publication of defamatory matter concerning himself or herself. Once
the plaintiff has accomplished this, it is presumed
that the
statement was both wrongful and intentional. A defendant wishing to
avoid liability for defamation must then raise a defence
which
excludes either wrongfulness or intent. Until recently there was
doubt as to the exact nature of the onus.
But
it is now settled that the onus on the defendant to rebut one or the
other presumption is not only a duty to adduce evidence,
but a full
onus, that is, it must be discharged on a preponderance of
probabilities. A bare denial by the defendant will therefore
not be
enough. Facts must be pleaded and proved that will be sufficient to
establish the defence.”
[44]
[46]
The applicants no longer take issue with the constitutionality
of the law of defamation as it applies to trading corporations. As
stated, at the hearing they abandoned their original contention that
the common law enabling trading corporations to sue for general
damages without alleging and proving falsity, wilfulness and
patrimonial loss unjustifiably limits a defendant’s right to
freedom of expression. What remains of their challenge is a
consideration of the constitutionality of awarding general damages
to
trading corporations in defamation cases.
The
current position of trading corporations in our common law of
defamation
[47]
The
common law distinguished reputation (
fama
)
and self-worth (
dignitas
)
as separate personality rights deserving of protection. That
protection was afforded through the
actio
iniuriarum
applied
in actions for defamation. This much is uncontentious.
[45]
In
SA Taxi,
the Supreme Court of Appeal affirmed that at common law, a
trading corporation has a right to the protection of its
reputation.
[46]
In that
regard, there was unanimity between the majority and minority
judgments.
[47]
[48]
The
conceptual basis of the right accorded to juristic persons is the
acceptance that there are aspects of reputation enjoyed by
juristic
persons that do not equate to the patrimonial value of goodwill.
[48]
Thus, the protectable interests of trading corporations extend beyond
mere goodwill. A trading corporation is a social entity that
enjoys a
reputation among many stakeholders that has a value that is not
reducible to reputation as a profit-making asset. C
orporate
reputation is arguably of little less importance than individual
reputation, as it is not only vital for the health and
prosperity of
both large and small businesses, but also for the communities within
which they operate.
[49]
Large corporations play a vital role
in communities and in the affairs of the economy and politics. Large
corporations are, for
example, often
well regarded by
employees, present, past and prospective. Large, influential
corporations are often national champions and contribute
to national
identity, and sometimes even pride as symbols of national success.
And they may sometimes be held in high esteem for
the role they play
as partners in national social projects. None of this is directly
connected to patrimonial gain or loss.
The need to
protect their reputation thus extends beyond self interest.
[50]
This
right to a good name has not always been consistently recognised in
our law. In a line of cases, the view was taken that juristic
persons
have no personality rights, including the right to a good name.
[49]
For this reason, it was held that juristic persons could not sue for
defamation.
[50]
But there
were, conversely, also cases that held that a trading corporation
could sue, if the impugned statement was calculated
to injure it in
its business reputation or to have an adverse effect on its trade or
business.
[51]
[51]
Then
came
Dhlomo
.
[52]
There, the Appellate Division decided that a trading corporation
should be entitled to sue for defamation and it pertinently approved
of the
obiter
dictum
to this effect, some 70 years before, in
Fichardt
.
[53]
With respect to the requirement of proof of injury to business
reputation or proof of adverse effect on its trade or business,
the
Court held:
“
It
would be wrong . . . to demand of a corporation which claims for an
injury done to its reputation that it should provide proof
of actual
loss suffered by it, when no such loss is required of a natural
person who sues for an injury done to his reputation.”
[54]
[52]
Dhlomo
was
followed by
Caxton
.
[55]
In that case, the respondents, also trading corporations, sued for
both general and special damages for alleged defamation. There,
the
right to sue for general damages, even though these were trading
corporations was uncontentious on the basis of the precedent
established in
Dhlomo
.
This was, of course, confirmed by the majority in
SA
Taxi
.
Before undertaking an analysis of the judgments in
SA
Taxi
,
it is necessary to have regard to human dignity and the source of a
trading corporation’s reputation rights.
The source of a trading
corporation’s reputation rights
[53]
This
Court in
National
Coalition I
,
[56]
with reference to
Hugo
,
[57]
acknowledged that:
“
Dignity is a
difficult concept to capture in precise terms. At its least, it is
clear that the constitutional protection of dignity
requires us to
acknowledge the value and worth of all individuals as members of our
society.”
[58]
[54]
Early
on in its jurisprudence, this Court in
Makwanyane
,
[59]
emphasised the importance of dignity in our Constitution, given our
lamentable history:
“
The
importance of dignity as a founding value of the new Constitution
cannot be overemphasised.
Recognising
a right to dignity is an acknowledgement of the intrinsic worth of
human beings: human beings are entitled to be treated
as worthy of
respect and concern
.
. . .
Respect
for the dignity of all human beings is particularly important in
South Africa.
For
apartheid was a denial of a common humanity. Black people were
refused respect and dignity and thereby the dignity of all
South Africans
was diminished. The new Constitution rejects this
past and affirms the equal worth of all South Africans. Thus
recognition
and protection of human dignity is the touchstone of the
new political order and is fundamental to the new Constitution.”
[60]
(Emphasis added.)
[55]
More
recently in
Freedom
of Religion
,
[61]
this Court underscored the importance of the right to human dignity:
“
There
is a history and context to the right to human dignity in our
country. As a result, this right occupies a special place in
the
architectural design of our Constitution, and for good reason. As
Cameron J correctly points out, the role and stressed importance
of
dignity in our Constitution aim ‘to repair indignity, to
renounce humiliation and degradation, and to vest full moral
citizenship to those who were denied it in the past’.
Unsurprisingly because not only is dignity one of the foundational
values of our democratic state, it is also one of the entrenched
fundamental rights.”
[62]
[56]
And in
Khumalo,
this Court said:
“
The
value of human dignity in our Constitution is not only concerned with
an individual’s sense of self-worth, but constitutes
an
affirmation of the worth of human beings in our society. It includes
the intrinsic worth of human beings shared by all people
as well as
the individual reputation of each person built upon his or her own
individual achievements. The value of human dignity
in our
Constitution therefore values both the personal sense of self-worth
as well as the public’s estimation of the worth
or value of an
individual.”
[63]
[57]
Having set out the content and
importance of the right to dignity, the question becomes who can bear
this right, more specifically,
whether juristic persons can bear this
right.
[58]
In answering the above question, the
first inquiry should be
whether the nature of the right
permits of application to a juristic person. To this end, we must
establish the content of the right.
As the
applicants correctly assert, there are numerous facets to human
dignity which simply cannot be of application to trading
corporations:
(a)
Human dignity includes the ability to develop one’s “humanness”
and unique talents.
[64]
(b)
Human dignity includes the ability to enter relationships of defining
significance.
[65]
(c)
Human dignity “comprises the deeply personal understanding we
have of ourselves, our worth as
individuals and our worth in our
material and social context”.
[66]
(d)
The right to human dignity protects us against degrading and invasive
stigmatisation of our consensual
sexual conduct.
[67]
(e)
Ubuntu, “
an
idea based on deep respect for the humanity of another”, i
s
the core foundation for the constitutional right to dignity.
[68]
(f)
Recently, this Court held that human dignity entails certain living
conditions.
[69]
[59]
It bears emphasis that a clear
distinction must be drawn between the broader concept of personhood
that is exclusive to humans and
the contrasting notion of corporate
identity. Human dignity resides and is given expression to within the
former, whereas the latter
is historically and legally structured
outside of the notion of personhood. Care must be taken to keep those
identities apart in
order not to diminish or dilute what it means to
be a person. While humans form corporations, they do so to enjoy the
benefit of
a legal person that is separate from the identity of
natural persons.
[60]
Provisions
in the Bill of Rights must be understood contextually and
purposively.
[70]
This includes
an analysis of the history of the provision and the reason for its
adoption.
[71]
The purpose of
the right to dignity is, by its very nature, “human centric”.
Its introduction into the Bill of
Rights was intended to cure a
situation in which
human
beings
were not treated as worthy of respect and concern. It was not
introduced to ensure that companies are treated as entities worthy
of
respect. A company was not meant to have “intrinsic
self-worth”, as this Court has repeatedly referred to the
essence
of human dignity.
[61]
A company’s right to be treated equally is
protected elsewhere – amongst others, by section 9 and
section 8(4),
but certainly not by section 10 of the Constitution. As
a result, it is not mere formalism to rely on the fact that the
section
10 right is headed “
human
dignity”.
Understood purposively, the right is intended to protect human
beings. And this purposive understanding is buttressed
by the
important aspect of textual context – that the right is headed
“human dignity”.
The fact that a
company’s right to equality is protected in, amongst others,
section 8(4) of the Constitution, does not lead
to the extension of
the provisions of section 10 to juristic persons, including
companies. For, as the
Certification
Judgment
makes plain:
“
[S]ome
rights are not appropriate to enjoyment by juristic persons, [and]
the text of section 8(4) specifically recognises
this. The text
also recognises that the nature of a juristic person may be taken
into account by a court in determining whether
a particular right is
available to such person or not.”
[72]
[62]
That
the right to dignity is undergirded, in part, by a protection of
reputational interests does not mean that because companies
have
reputational interests, they have a right to dignity. Instead,
dignity protects human beings’ reputational interests,
because
protection of those interests is necessary to ensure that a specific
purpose is realised – that human beings are
treated as worthy
of respect and concern.
[73]
The position in respect of corporations is self-evidently quite
different. They do not possess these traits of natural personhood.
The nature of their right to a good name and reputation must
necessarily be distinguished from that of a natural person. Put
differently,
the mere fact that an entity has an interest which is
protected by a certain right does not mean that the entity enjoys
that right.
[63]
It is quite legitimate to argue that a
human being’s reputational interests are in need of a more
demanding form of protection
than a company’s, for example, and
that this protection is therefore to be moored in a constitutional
right. Conversely,
it is fair to reason that a company’s
reputational interest is sufficiently protected by the common law,
and therefore
does not enjoy the protection of a constitutional
guarantee. In short, section 8(4) does not require that
companies are afforded
a section 10 right simply because they enjoy
an interest which that right protects. In my view, the purpose of the
right described
above points in the opposite direction.
[64]
In
Hyundai
,
[74]
a case upon which much reliance was placed by the majority in
SA Taxi
,
this Court held:
“
The protection of
the right to privacy may be claimed by any person. . . . Neither
counsel addressed argument on the question of
whether there was any
difference between the privacy rights of natural persons and juristic
persons. But what is clear is that
the right to privacy is
applicable, where appropriate, to a juristic person. . . .
Juristic
persons are not the bearers of human dignity
.
Their privacy rights, therefore, can never be as intense as those of
human beings. However, this does not mean that juristic persons
are
not protected by the right to privacy.”
[75]
(Emphasis added.)
[65]
This Court in
Hyundai
referred to section 8(4) of the Constitution, which provides that a
“juristic person is entitled to the rights in the Bill
of
Rights to the extent required by the nature of the rights and the
nature of that juristic person”. This qualification
in section
8(4) was explained in the
Certification
Judgment
:
“
[M]any
‘universally accepted fundamental rights’ will be fully
recognised only if afforded to juristic persons as well
as natural
persons. For example, freedom of speech, to be given proper effect,
must be afforded to the media, which are often owned
or controlled by
juristic persons. While it is true that some rights are not
appropriate to enjoyment by juristic persons, the
text of section
8(4) specifically recognises this. The text also recognises that the
nature of a juristic person may be taken into
account by a court in
determining whether a particular right is available to such person or
not.”
[76]
[66]
Hyundai
was
concerned with the right to privacy. While this Court did link that
right and the right to dignity (referencing
Bernstein
[77]
in that regard), it pertinently held that “
[j]uristic
persons are not the bearers of human
dignity
”.
[78]
This was confirmed by this Court in
Tulip
Diamonds
.
[79]
Plainly
then, the law in this regard has been emphatically settled by this
Court in
Hyundai
and
Tulip
Diamonds
.
Self-evidently, human dignity is a personal value and right, bearing
on the intrinsic self-worth of all human beings.
[80]
The
assessment whether a juristic person bears a constitutional right to
dignity in terms of section 10 entails an enquiry into
the nature of
the right and the nature of the juristic person. For the reasons
already stated, on both these bases the answer to
that enquiry must
emphatically be in the negative. This Court has authoritatively said
so not once, but twice that the nature of
the right to dignity is
such that it cannot apply to juristic persons. This settled law must
be accorded the requisite jurisprudential
recognition.
[67]
In
Gcaba
,
this Court cautioned:
“
A
highest court of appeal – and this Court in particular –
has to be especially cautious as far as adherence to or deviation
from its own previous decisions is concerned. It is the upper
guardian of the letter, spirit and values of the Constitution. The
Constitution is the supreme law and has had a major impact on the
entire South African legal order – as it was intended
to
do. But it is young; so is the legislation following from it. As a
jurisprudence develops, understanding may increase and
interpretations
may change. At the same time though, a single source
of consistent, authoritative and binding decisions is essential for
the development
of a stable constitutional jurisprudence and for the
effective protection of fundamental rights. This Court must not
easily and
without coherent and compelling reason deviate from its
own previous decisions, or be seen to have done so. One exceptional
instance
where this principle may be invoked is when this Court’s
earlier decisions have given rise to controversy or uncertainty,
leading to conflicting decisions in the lower courts.”
[81]
[68]
I
have had the pleasure of reading the judgment penned by my Brother,
Unterhalter AJ (second judgment). The second judgment
evades the
thrust of this Court’s definitive judgments in
Hyundai
and
Tulip
Diamonds
because there is no need to “
make
a dispositive interpretation on this score”.
[82]
The
import of those two cases is no trifling matter. They provide much of
the rationale why trading corporations do not enjoy the
right to
general damages. Having established that a trading corporation’s
right to reputation is not sourced in section 10
of the Constitution,
I proceed to an analysis of the judgments in
SA Taxi
.
The judgments in SA Taxi
Majority
judgment of Brand JA
[69]
As stated, the High Court regarded
itself bound by the Supreme Court of Appeal precedent in
SA
Taxi
and, understandably, the mining
companies place heavy reliance on the majority judgment.
SA
Taxi
was the first occasion where the
Supreme Court of Appeal and, before it, the Appellate Division, was
required to pertinently rule
as a triable issue in the case, what
kind of loss is occasioned when a trading corporation sues for
defamation. Neither
Fichardt
,
Spoorbond
,
Dhlomo
,
nor
Caxton
decided this point.
SA Taxi
was the first case to do so. It broke new ground in our defamation
law as it relates to trading corporations’ right to sue
for
general damages.
[70]
That case concerned a
defamation
action instituted by SA Taxi, a finance company that provides
financial assistance to purchasers and lessees of
taxis. The
first defendant, Media 24, published a newspaper,
City Press
,
which was distributed countrywide in South Africa. The second
defendant is the editor of that newspaper. The action emanated from
an article which was published in
City Press
in June 2008
under the title “Taxi owners taken for a ride by finance body”.
SA Taxi claimed amounts for
general as well as special damages
(for lost profits). After its exception was dismissed, Media 24 filed
a special plea that challenged
SA Taxi’s right to obtain
either general or special damages under the law of defamation.
Media 24 contended that
for general damages SA Taxi had no claim
at all in defamation, while its claim for special damages was not
available under the
actio iniuriarum
, from which the action
for defamation derives, but only under the
actio legis Aquilia
.
[71]
After
a comprehensive analysis of case law and legal principles, the
majority found it
unnecessary
to arrive at a final decision as to whether the requirements of a
claim for special damages resulting from defamation
should mirror the
requirements of injurious falsehood. In respect of general damages,
Brand JA, writing for the majority, correctly
pointed out that in our
law, the defamation action originates from the
actio
iniuriarum,
which
was a claim for wounded feelings and not for patrimonial loss.
[83]
It was meant to compensate a plaintiff by compelling an intentional
wrongdoer to pay a private penalty to the plaintiff.
[84]
Brand JA referred to the
obiter
dictum
of Innes CJ in
Fichardt
,
to which I have alluded, and the separate
dictum
of Solomon JA in that case, also made
obiter
.
Further reference was made to a later
obiter
dictum
in
Spoorbond
[85]
and the uncertainty that prevailed, precisely because even though
these were decisions of the highest court in the land at that
time,
they were non binding
obiter dicta
.
Thus, although the Appellate Division had in these cases expressed
strong views that general damages are available to trading
corporations in defamation actions for injury to their reputation,
they did not set precedent. Unsurprisingly, in numerous subsequent
cases there were findings both for and against this view (some of
these cases have been mentioned). That uncertainty was settled
by the
Appellate Division in
Dhlomo.
[86]
[72]
With reference to a number of
decisions of Provincial Divisions, the Appellate Division and
the Supreme Court of Appeal,
Brand JA continued and
observed that—
“
it has
consistently been accepted by our courts, including this court [the
Supreme Court of Appeal], that corporations, both trading
and
non-trading, have a right to their good name and reputation which is
protected by the usual remedies afforded under our law
of defamation,
including a claim for damages.”
[87]
[73]
Dealing seriatim with the three principal bases of Media 24’s
attack against what Brand JA regarded as “powerful
authority”, the Judge rejected the first two (first, that
as
far as trading corporations are concerned, the decisions by the
Supreme Court of Appeal were either
obiter
or based on assumptions as to the legal position and second, that
they were all wrongly decided). Nothing further need be said
about
these two grounds. For present purposes, the findings in respect of
the third ground of attack,
that the extension of the common
law of defamation to trading corporations is unconstitutional, is of
cardinal importance. It is
therefore necessary to refer in some
detail to the majority’s key findings.
[74]
The challenge against the
constitutionality of placing trading corporations in the same
position as natural persons in respect of
general damages awards in
defamation actions was dismissed by the majority:
“
Though these are
obviously forceful arguments [by Media 24], I am left unpersuaded
that the recognition of a corporation’s
claim for general
damages in defamation constitutes an unjustified limitation to
freedom of expression. As to the argument based
on the thesis that
the reputation of a corporation is not protected by the Constitution,
I am not convinced that the premise is
well founded. Section 8(4) of
the Constitution provides that ‘a juristic person is entitled
to the rights in the Bill of
Rights to the extent required by the
nature of the rights and the nature of that juristic person’.
Subject to these qualifications,
juristic persons therefore also
possess personality rights,
which
are protected as fundamental rights
.”
[88]
(Emphasis added.)
[75]
The majority examined the concept of
dignity in our constitutional landscape and concluded:
“
[Dignity]
has a wide meaning which covers a number of different values.
So, for example, it protects both the right to reputation and the
right to a sense of self-worth. Under our common law, on the other
hand, ‘dignity’ has a narrower meaning. It is confined
to
the feeling of self-worth.”
[76]
In
the latter regard, it cited
Khumalo
[89]
and
Le
Roux.
[90]
It added that—
“
[i]t is plain
therefore that the protection of ‘dignity’ in section 10
is not confined to ‘dignity’ in the
narrower –
common law – sense but that it also extends to other
personality rights, and that at least some of these
can be possessed
by corporations, for example the right to privacy.”
[91]
[77]
The
obiter
dictum
in
Financial
Mail
[92]
is cited in support of the finding that “[o]ur common law
recognises the personality right of a non-natural person to privacy”
– this is said to be by way of inferential reasoning from that
obiter
dictum
.
[93]
And it was pointed out that this Court in
Hyundai
had confirmed that right to privacy in respect of juristic
persons.
[94]
[78]
On the authority of these cited passages in
Financial Mail
and particularly
Hyundai,
the majority held:
“
In the light of
this historical development it will be anomalous if the corporations’
right to reputation which, through inferential
reasoning, gave rise
to the acknowledgement of its right to privacy, would be held not to
enjoy the same constitutional protection
as its right to privacy. In
the present context, I can see no conceptual difference between the
corporations’ right to privacy,
on the one hand, and its right
to reputation, on the other. Both privacy and reputation fall outside
the ambit of the narrow meaning
of ‘human dignity’ which
a corporation cannot have. At the same time, they are both included
in the wider meaning of
‘dignity’, protected by section
10 of the Constitution.”
[95]
[79]
And, finally, the majority reached the conclusion that:
“
But
even if the reputation of a corporation is not protected by the
Constitution, it by no means follows that its reputation is
not
protected by the law of defamation. Though freedom of expression is
fundamental to our democratic society, it is not of paramount
value .
. . . Nor does it enjoy superior status in our law . . . .
Accordingly, limitations of the right to freedom of expression
have
been admitted in the past for purposes not grounded on fundamental
rights . . . . For the reasons I have given, I believe
that the
reputation of a corporation is worthy of protection. Moreover, I
believe that the common law rule protecting that reputation
is in
turn recognised by section 39(3) of the Constitution. In
Khumalo
the Constitutional Court considered our common law of defamation and
concluded that it strikes a proper balance between the protection
of
the right to freedom of expression, on the one hand, and the right to
reputation, on the other. As I see it this also applies
to the
reputation of corporations.”
[96]
[80]
The
majority found fortification for its findings in the decisions of
Steel
and Morris
[97]
and
Jameel.
[98]
The ultimate conclusion of the majority that there is nothing
constitutionally objectionable about awarding general damages will
be
dealt with presently. Before discussing the minority judgment of
Nugent JA, I record the instances of and reasons for my respectful
disagreement with the reasoning in the
SA Taxi
majority judgment. Some of these have already been mentioned, but
they are repeated for emphasis. It is convenient to follow the
sequence of the findings by the majority as outlined above.
[81]
First, there is the invocation of
section
8(4) of the Constitution as support of its finding that a trading
corporation has a right to dignity. That reliance is misplaced
for at
least two reasons:
(a)
It overlooks the crucial qualification that juristic persons’
entitlement to the rights in the
Bill of Rights is limited to “the
extent required by the nature of the rights and the nature of that
juristic person”.
As stated, the
Certification Judgment
emphasised this qualification. And it bears repetition that trading
corporations can by their very nature not lay claim to the
deeply
personal right to human dignity contained in section 10 of the
Constitution – they have no feelings and intrinsic
self-worth
like human beings have, which can be assuaged. The myriad facets of
human dignity simply cannot apply to trading corporations
as juristic
persons.
(b)
Furthermore, the majority asserted that “subject to these
qualifications, juristic persons therefore
also possess personality
rights,
which
are protected as fundamental rights
”.
[99]
In the context of the majority judgment as a whole, although
reference is made to “fundamental rights”, what is meant
is plainly only the right to human dignity in section 10. But,
for the reasons stated, that cannot be the case. The protectable
right of juristic persons, more particularly for present purposes
trading corporations, to good name and reputation is founded
not in
the section 10 right to human dignity, but in the uncontroversial
common law right to its reputation
(fama
,
as opposed to
dignitas
)
and arguably in the equality rights under section 9 and 8(4) of the
Constitution.
[82]
The second area of my disagreement concerns the view of the
majority that—
“
the protection of
‘dignity’ in section 10 is not confined to ‘dignity’
in the narrower – common law
– sense but that it also
extends to other personality rights, and that at least some of these
can be possessed by corporations,
as for example the right to
privacy.”
[100]
It
will be recalled that in respect of the former aspect, the
dictum
in
Le
Roux
[101]
was relied upon. And in respect of the latter aspect, the
dictum
of Corbett CJ in
Financial Mail
is invoked for support.
[83]
Again,
there are four conceptual difficulties with this approach. First, the
reliance on
Le
Roux
is
misplaced. The distinction finds no application in respect of a
trading corporation, since they simply do not have either wide
or
narrow dignity under section 10 of the Constitution.
Le
Roux
concerned the dignity of a natural person, Dr Dey, the then
deputy headmaster of the school which the applicants attended
at that
time. Dignity, under section 10, thus occupied a central role in the
adjudication of his claims for injury to his dignity
and
defamation.
[102]
Not so here
– no section 10 right to human dignity is available to a
trading corporation. Moreover, as stated, in
Hyundai
and
Tulip
Diamonds,
this Court drew no such distinction and unequivocally held that a
juristic person bears no right to human dignity.
[84]
The second conceptual difficulty is that, as alluded to, the
dictum
of Corbett CJ in
Financial Mail
was a
non-binding
obiter dictum
. It was a general observation in
passing about what courts have permitted in the past in respect of
general damages for defamation
of juristic persons. Here, as in
SA
Taxi
, the pertinent question is whether, under our constitutional
dispensation, our courts should allow such a claim.
[85]
The
third point of disagreement is the majority’s equating the
right to privacy to the right to dignity, by referencing
Hyundai
.
It is uncontentious that juristic persons have a right to privacy.
But that cannot be summarily equated to the right to dignity.
They
are two entirely different concepts, as this Court made clear in
Hyundai
–
juristic
persons have the right to privacy, but they do not bear the right to
dignity. This Court did not base its finding regarding
the right to
privacy with reference to a right to reputation or dignity. It was
solely focused on the “
the
possibility of grave violations of privacy in our society, with
serious implications for the conduct of affairs . . . . [leading]
to
grave disruptions and would undermine the very fabric of our
democratic state”.
[103]
[86]
Lastly,
I disagree with the majority’s finding that “
[t]hough
freedom of expression is fundamental to our democratic society, it is
not of paramount value . . . . Nor does it enjoy
superior status in
our law”.
[104]
That
finding is untenable. It is based on a fundamental misconception that
the Court in
SA
Taxi
was faced with two competing
fundamental rights
that is, the section 16 right to freedom of expression and the
section 10 right to human dignity, but I have already explained
why the fundamental right to dignity does not find application. I
reiterate that I accept that another fundamental right, the right
to
equality, may well be applicable.
[87]
In sum, the majority judgment in
SA
Taxi
is wrong in its reasoning that
undergirds the finding
that a trading corporation has a claim
for general damages in defamation, based on the constitutional right
to dignity. I unreservedly
accept that a trading corporation has a
right at common law to its good name and reputation and that right is
enforceable through
a common law claim for defamation. And, as I see
it, there can be no legitimate objection to such a claim also being
recognised
constitutionally, particularly in view of the equality
protection contained in the provisions of sections 8(4) and 9 of
the
Constitution. More about that later. Where I part ways with the
majority reasoning in
SA Taxi
is, for the reasons advanced,
its finding that a trading corporation has a defamation claim based
on the constitutional right to
dignity. The second leg of that
finding, the question whether the remedies available to it includes a
claim for general damages,
will be considered presently.
Minority judgment of
Nugent JA
[88]
In his minority judgment, Nugent JA reasoned thus:
“
Damages
in our law are meant to compensate for loss. Humans suffer loss from
defamation because humans experience feeling, and they
experience
feeling because they are alive. They experience the feeling of
pleasure and they experience the feeling of pain. A human
experiences
the feeling of joy and the feeling of grief. And amongst the desires
of humans is to enjoy the feeling that comes with
a dignified life.
That desired feeling waxes when they are held in esteem and it wanes
when they are not. The loss that is compensated
for when a human is
defamed is the diminution in the desired feeling that comes with
living a dignified human life. What is compensated
for is harm to
feelings.
Juristic
persons do not experience feeling because they exist but they are not
alive. They are capable of possessing property, and
engaging in
property transactions, because the law is capable of giving them that
capacity, but the law has no capacity to bring
them to life. They are
not capable of sustaining human loss from defamation because that is
unique to human beings. If a trading
corporation sustains loss from
defamation it must necessarily be loss of a different kind.”
[105]
[89]
Nugent JA differed from the majority judgment only on the
remedy of general damages, primarily by reason of the fact that to
award
such damages to a trading corporation would be punitive in
nature and not compensatory. He agreed with the majority, though,
that
a trading corporation has a claim for defamation that is not
barred by the Constitution. Nugent JA held that:
“
[G]eneral damages
to a trading corporation are inherently punitive, and thus not
permitted by our law, from which it must follow
that to award general
damages to a trading corporation is also an unjustified intrusion
upon the right of free expression.”
[106]
That
is the issue which bears discussion next.
Ought
a trading corporation to be awarded general damages for defamation?
[90]
Prior to engaging with the question whether awarding
general damages to trading corporations in defamation cases is
constitutional,
we must first determine whether they have a right to
claim general damages.
[91]
It is well established in our law that damages in respect of
natural persons to vindicate reputation and good name is
compensatory.
Thus, this Court held in
Fose
:
“
Past awards of
general damages in cases of defamation,
injuria
and the like coming before our courts have sometimes taken into
account a strong disapproval of the defendant's conduct which was
judicially felt. That has always been done, however, on the footing
that such behaviour was considered to have aggravated the actionable
harm suffered, and consequently to have increased the compensation
payable for it. Claims for damages not purporting to provide
a cent
of compensation, but with the different object of producing some
punitive or exemplary result, have never on the other hand
been
authoritatively recognised in modern South African law.”
[107]
This
authoritative statement of the law still holds true.
[92]
The
central question in respect of the compensation of harm in respect of
the infringement of a trading corporation’s reputation
is
whether it can suffer harm other than patrimonial loss in such
instances. Insofar as patrimonial loss is concerned, there was
uncertainty in our law as to whether damages for patrimonial loss
flowing from a defamatory statement should be claimed with the
Aquilian
action
or the
actio
iniuriarum.
[108]
The question, left open in
Caxton,
was answered in
SA Taxi
where
the Supreme Court of Appeal held that the appropriate action is the
actio
legis Aquiliae.
Insofar
as injury to personality is concerned, the remedy is the
actio
iniuriarum.
That
remedy is mainly directed at
providing
personal (psychological) satisfaction to a plaintiff by compelling
the defendant to pay a certain amount of money as
solatium
(solace)
to a plaintiff. It is a remedy for injured feelings. Compensation by
way of providing some or other equivalent for
the impaired
personality interest does not feature.
[109]
[93]
There
is a strongly held view that
since
a juristic person, as a legal construct, cannot experience the
personal suffering which normally results from the infringement
of a
personality interest, it does not have personality rights.
[110]
But there is an equally strong view, one to which I subscribe, that
juristic persons can lay claim to personality rights because
they can
objectively suffer personality harm without experiencing subjective
injured feelings.
[111]
Thus,
a juristic person such as a trading corporation has a legitimate
interest in the protection of its reputation.
[94]
The
objection to affording a juristic person personality rights, which is
premised on the notion that it does not experience wounded
feelings,
appears to be based on a misconception. In this regard it is
necessary to revert briefly to a consideration of the
actio
iniuriarum
and its origins. In his Edict, Ulpian provided the classical
subdivision of the Roman delict of
iniuria
–
it
could be inflicted upon the
corpus
(body),
fama
(reputation) or
dignitas
(dignity).
[112]
This
exposition was adopted and developed further in Roman-Dutch law,
primarily by Voet. It is the fundamental division of our
law of
delict. This Ulpianic distinction is of considerable importance in
considering why, despite not being able to experience
“wounded
feelings”, a trading corporation as a juristic person and
abstract legal entity could possibly have recourse
to a claim for
personality infringement (harm to its reputation) and a claim for
general damages.
[95]
That distinction not only subdivides
the injury in respect of a civil wrong into these three categories,
but it also importantly
separated the internal interest of the
claimant which is protected by a solace award (
solatium
)
as the redress for hurt feelings, from the external interest. In
respect of the latter, injured feelings play no role. Descheemaeker
points out that:
“
Emotional
tranquility – the interest protected through the redress of
wounded feelings – does not stand on a par
with the likes
of corpus,
dignitas
and
fama
.
Rather, it is their reverse side: it is through the violation of
their reputation, dignity or body that plaintiffs will –
ordinarily – be wounded in their feelings. They thus operate on
a separate, and parallel, level.”
[113]
[96]
Thus
viewed, the objection to affording juristic persons personality
rights and a possible claim for general damages falls flat.
What
matters in this perspective is the juristic person’s objective
external interest, its right to reputation and a good
name. The
argument that simply because it has no wounded feelings and it cannot
suffer non patrimonial loss, then becomes
untenable. I am
prepared to accept that a trading corporation can suffer
non-patrimonial harm in an infringement of its right to
reputation.
That means that in principle, it may be entitled to sue for general
damages for that harm. There is strong support
for
the
development of the common law of defamation to do away with general
damages in defamation claims.
[114]
Thus, in
Le
Roux
,
Cameron J and Froneman J bemoaned the fact that—
“
[t]he present
position in our Roman-Dutch common law is that the only remedy
available to a person who has suffered an infringement
of a
personality right is a claim for damages. One cannot sue for an
apology and courts have been unable to order that an apology
be made
or published, even where it is the most effective method of restoring
dignity. A person who is genuinely contrite about
infringing
another’s right cannot raise an immediate apology and
retraction as a defence to a claim for damages. At best
it may
influence the amount of damages awarded. This is an unacceptable
state of affairs, illustrated by what happened in this
case.”
[115]
[97]
What bears consideration next is whether a claim for general
damages for defamation by a trading corporation passes constitutional
muster. It bears mentioning that, under the present rubric, the
discussion centred around the question whether, a trading corporation
ought to be awarded general damages for defamation, it having been
established that a trading corporation has a defamation claim
available to it, both at common law and constitutionally. That is the
premise being tested for constitutionality next. It does
not concern
the question whether a trading corporation has a right at common law
and under the Constitution to claim for reputational
damage in
respect of harm that is non patrimonial. I have already accepted
that it has that right.
[98]
Before
that discussion, it is necessary first to say something briefly about
the position of unincorporated entities being eligible
for general
damages. The second judgment asserts that what it calls the
“presumptive exclusion” of non trading
corporations:
leads to anomalies, gives rise to arbitrariness, and infringes on the
right to equal protection and benefit of the
law in section 9(1)
of the Constitution.
[116]
But that is not the approach that I take. I unhesitatingly accept
that to distinguish between different types of entities in respect
of
the awarding of general damages would be arbitrary and would
implicate section 9 of the Constitution. That is precisely why
the
test I propose stands on two legs, namely: (a) the nature of the
entity (that is, not a natural person); and (b) the nature
of the
speech. While the question in this matter was posed by the applicants
in the context of trading corporations (or for-profit
companies), I
emphasise that my judgment concerns all corporate entities,
incorporated or not, both trading and non-trading, for-profit
and
not. It includes unincorporated businesses, non profit
organisations (NPOs) as well as political parties. The only
distinction
I draw in this judgment is between natural persons and
corporate entities.
[99]
It is also necessary to dispel the notion in the second
judgment that an NPO has no claim for patrimonial damages. It can
obviously
claim for lost donations where there is proof that its
goodwill was lost due to the harm caused by defamatory speech. An NPO
does
not suffer undue hardship as contended in the second judgment.
And while an NPO, like any other non-trading corporation, also has
the right to a good name and reputation, they are not automatically
beyond reproach simply because they do not make profits.
Constitutionality of
awarding general damages to trading corporations: section 36
analysis
[100]
For the reasons that follow, I hold that the availability of
general damages to a trading corporation for harm to its reputation
infringes the section 16 right to freedom of speech, specifically in
relation to speech which is of public importance or which
requires
public debate and participation. Put differently, this limitation
analysis must be conducted in light of (a) the nature
of the
plaintiff and (b) the nature of the speech concerned.
Is there a limitation of
the right entrenched in section 16 of the Constitution?
[101]
Generally,
awards of general damages for defamation, particularly in substantial
amounts, tend to have a chilling effect on free
speech.
[117]
Self-evidently, if a juristic person such as a trading corporation
suffers harm by way of patrimonial loss as a result of defamatory
remarks and such patrimonial loss can be proved, it has a valid
claim. That much is uncontentious – I did not understand
the
environmentalists to contend to the contrary. The bone of contention
here is the constitutionality of non patrimonial
damages. There
is an important difference between these two types of damages, one
that is pertinent in the context of this case
for the central
question presently under consideration. The severe limitation of the
right to freedom of expression, specifically
in debates that are of
public importance, by awards of general damages is a breach of that
right. Is this breach justifiable in
terms of section 36 of the
Constitution?
[118]
What bears consideration next are
the
factors outlined in section 36.
Justification
analysis
The
nature of the right
[102]
The
nature and importance of the right to freedom of expression is trite.
Ronald Dworkin identified two categories into which the
various
defences to free speech can be classified.
[119]
First, instrumental arguments defend free speech because of what it
can do for us: free speech is important “not because
people
have an intrinsic moral right to say what they wish, but because
allowing them to do so will produce good effects for the
rest of
us”.
[120]
Second, the
constitutive conception of free speech sees it as valuable because
expression is an important part of what it means
to be human:
“
[F]reedom
of speech is valuable, not just in virtue of the consequences it has,
but because it is an essential and ‘constitutive’
feature
of a just political society that government treat all its adult
members . . . as responsible moral agents. That requirement
has two
dimensions. First, morally responsible people insist on making up
their own minds about what is good or bad in life or
in politics, or
what is true and false in matters of justice or faith. . . . We
retain our dignity, as individuals, only by insisting
that no one –
no official and no majority – has the right to withhold an
opinion from us of the ground that we are
not fit to hear and
consider it.”
[121]
[103]
Further,
the right to freedom of expression commands an important place in our
constitutional landscape. It is a right which lies
at the core of our
constitutional democracy, “not only because it is an “essential
and constitutive feature” of our open democratic
society, but
also for its transformative potential”
.
[122]
In
Qwelane
,
this Court articulated that
“[t]he
right to freedom of expression, as enshrined in section 16(1) of
the Constitution, is the benchmark for a vibrant
and animated
constitutional democracy like ours”.
[123]
And in
Democratic
Alliance
,
it held:
“
This
Court has already spoken lavishly about this right. The Constitution
recognises that people in our society must be able to
hear, form and
express opinions freely. For freedom of expression is the cornerstone
of democracy. It is valuable both for its
intrinsic importance and
because it is instrumentally useful. It is useful in protecting
democracy, by informing citizens, encouraging
debate and enabling
folly and misgovernance to be exposed. It also helps the search for
truth by both individuals and society generally.
If society represses
views, it considers unacceptable, they may never be exposed as wrong.
Open debate enhances truth-finding and
enables us to scrutinise
political argument and deliberate social values.
What
is more, being able to speak freely recognises and protects ‘the
moral agency of individuals in our society’. We
are entitled to
speak out not just to be good citizens, but to fulfil our capacity to
be individually human.”
[124]
The
importance of the purpose of the limitation
[104]
The purpose of the limitation, being
the award of general damages, is to restore a plaintiff’s
reputation and/or dignity (depending
on the nature of the plaintiff)
that has been harmed by the defamatory speech. This limitation is
important to the extent that
it attempts to strike a balance between
a defendant’s right to freedom of expression and protecting a
plaintiff’s right
to its reputation and/or dignity. However,
the scale is tipped, as is the case here, where the nature of the
speech is such that
it is of public importance and the plaintiff is a
trading corporation whose reputation rights are not sourced in the
Constitution
and are, at best, only enjoyed objectively. In such an
instance, the importance of the limitation shrinks dramatically.
Conversely,
where the plaintiff is a natural person whose dignity and
reputation rights are sourced in section 10 of the Constitution
and/or where the speech concerned is not part of a debate of public
importance, the importance of the limitation increases.
[105]
This
Court has distinguished between “core values” of freedom
of expression and “expression of little value which
is found at
the periphery of the right”.
[125]
The latter type of expression receives less protection in that
limitation on such forms of expression is relatively easily
justified,
compared to expression at the core.
[126]
Thus,
certain
speech is more valuable than others and worthy of higher protection –
this has a bearing on the exception made here
in respect of general
damages where the speech falls within an important public debate.
For
example, political expression is at the core of the right.
[127]
Public participation created by activists regarding environmental
compliance, or a lack thereof, by large mining companies which
has a
negative effect on the communities surrounding the mines and
South Africa generally, would similarly be at the core
of the
right and warrant a high standard of protection.
The
nature and extent of the limitation
[106]
As stated at the outset of this analysis,
awards of general damages for defamation, particularly in
substantial amounts, tend to have a chilling effect on free speech.
General
damages, in contrast to alternative remedies like patrimonial
damages, undoubtedly constitute a severe limitation on the right to
freedom of expression. This Court has recognised the chilling effect
of general damages. In
Dikoko
, Moseneke DCJ observed:
“
The extent of
sentimental damages for defamation has implications for the properly
mediated connection between dignity and free
expression. It is
plainly so that overly excessive amounts of damages will deter free
speech and foster intolerance to it. As it
is often said, robust
awards will have a ‘chilling effect’ on free expression,
which is the lifeblood of an open and
democratic society cherished by
our Constitution.”
[128]
[107]
The allegations made in this case
starkly remind us of the potential chilling effect an award of
general damages may have on the
right to freedom of expression.
Axiomatically, the larger the corporation, the more extensive the
potential loss of (future) profits,
which would constitute general
damages. And, of course, it would be far higher than the quantum in a
general damages award in respect
of a natural person. It is
uncontentious, as I see it, that the respondents are large trading
corporations. They appear to mine
on an extensive scale. The
applicants are natural persons, activists in the environmental field.
The amount of damages sued for
is not insubstantial, in excess of
R14 000 000. As stated, our environmental legislation places a
high premium on public participation.
And environmental issues are
increasingly coming to the forefront of general public discourse.
Absence
of a rational connection between purpose and limitation
[108]
Our law has consistently justified
general damages with respect to the dignity of a plaintiff as a means
to assuage their sense
of self-worth. For the reasons advanced,
trading corporations have no section 10 right to human dignity. I
have already concluded
that a trading corporation has, at best, an
objectively enjoyed common law right to reputation
. In light
of the fact that general damages cannot be justified on this basis,
there is no compelling justification for their limitation
on the
right to freedom of expression in an instance such as this.
[109]
There
is only a very nebulous connection between a general damages
defamation suit and protecting a trading corporation’s
bottom
line. The current legal position is that general damages claims do
not concern patrimonial loss and loss is not an element
of the delict
of defamation. As stated, general damages awarded in defamation are
aimed at assuaging harm done to a natural person’s
dignity, not
compensating for patrimonial loss
[129]
and it cannot legitimately and effectively be utilised to compensate
a trading corporation for patrimonial loss suffered due to
defamation.
Availability
of less restrictive means
[110]
There are in any event less
restrictive means available to achieve the vindication of a trading
corporation’s reputation where
the speech is of the nature that
it is considered important for public participation, as opposed to
the unjustified drastic restriction
of the right to freedom of
expression that an unqualified award for general damages entails.
These less restrictive means include:
an interdict, a declarator, a
retraction, or an apology.
[111]
Plainly, in this instance two
important rights require to be weighed up against each other –
the common law right to reputation
and good name, protected by the
Constitution’s equality provisions, and the constitutional
right to freedom of expression.
The finding that an unqualified award
of general damages to a trading corporation for a defamation claim is
unconstitutional does
not mean that such awards will never pass
constitutional muster. Having recognised a trading corporation’s
protectable interest
in its good name and reputation, leads to the
question whether general damages in certain circumscribed instances
can bear consideration.
This is because general damages are not
confined to awarding some compensation for hurt feelings which a
trading corporation cannot
suffer. They are instead a monetary
recognition that there is harm to reputation that does not always
reflect in patrimonial loss.
[112]
An
important consideration here is the context within which the alleged
defamation took place. That alleged defamation concerns
engagements
over important issues of public debate, here alleged environmental
harm caused by mining. Public discourse about matters
that affect all
or many of us and are of grave public concern, such as damage to the
environment, must be encouraged and not stifled
in a vibrant
democracy like ours.
[130]
As
this Court held in
Democratic
Alliance
,
the Constitution “recognizes that people in our society must be
able to hear, form and express opinions freely. For freedom
of
expression is the cornerstone of democracy”.
[131]
[113]
Generally, some relief by way of
general damages must be available as recompense for non-patrimonial
harm to juristic persons caused
by defamatory statements. The way to
achieve this is to distinguish between speech which forms part of
public discourse on issues
of public interest, and that which does
not.
[114]
As such, the awarding of general
damages must have regard to whether the defamation forms part of
public discourse on issues of
public interest. This is a pertinent
factor that must bear consideration. Where the defamatory statements
are made in the course
of such public discourse on issues of
legitimate public interest, general damages may not be considered.
Where the defamation does
not form part of the abovementioned public
discourse, the extent of general damages would axiomatically be
determined on a fact-based
approach from case to case. Imposing this
qualification for the awarding of general damages would afford courts
a discretion to
weigh up the many different factual circumstances in
which defamatory speech arises. Gratuitous defamation of a private
corporation
upon a matter of no public interest should generally
justify compensation for non-patrimonial harm. Conversely, where
there are
issues of public interest the award is not warranted
because of the potential of suppressing important public debate in
matters
of public interest. Self-evidently, a court exercising a
discretion in these instances would do so judicially, with a weighing
up of all relevant facts and factors.
[115]
The second judgment expresses criticism
about the approach adopted here to accept
“the
constitutional validity of damages for patrimonial loss, but not for
general damages”. It says:
“
Indeed, the first
judgment holds that general damages, in contrast to alternative
remedies, such as damages for patrimonial loss,
constitute a severe
limitation on the right to freedom of expression. . . . And so the
first judgment leaves unexplained why general
damages have harmful
effects upon free speech that damages for patrimonial loss do
not.”
[132]
[116]
The first and obvious point to make is that
this case does not concern
the constitutional validity of
damages for patrimonial loss. The reason for refraining from making
any pronouncement on that aspect
is that damages for patrimonial loss
were not the subject of the challenge before this Court.
[117]
It is doubtful, in any event, that it is fair to draw the
contrast between patrimonial and general damages, as the second
judgment
seeks to do. While both these remedies entail the payment of
a sum of money, there are important differences between them:
(a)
First, damages for patrimonial loss are claimed by way of the
actio
legis Aquiliae
and general damages are claimed via the
actio
iniuriarum
.
(b)
Second, the purpose of the
actio legis Aquiliae
is different
to that of the
actio iniuriarum
.
(c)
Thirdly, it follows then that there is a marked difference between
the purpose of damages for patrimonial
loss to that of general
damages. The first restores quantifiable patrimonial loss, whereas
the other assuages dignity and hurt
feelings or other protectable,
non-patrimonial reputational interests that an entity may have.
[118]
There is no precedent to my knowledge, nor has any been
proffered by the second judgment, that a section 36 analysis of
the
availability of less restrictive means includes an enquiry into
the constitutionality of such less restrictive means. It has never
been our law that an analysis has to be conducted under section 36
into the constitutional compliance of available remedies that
constitute less restrictive means. I am not aware of any judgment to
this effect, particularly of this Court, where there has ever
been a
section 36 analysis to test whether the proposed less
restrictive means were constitutionally compliant.
[119]
A conspectus of the judgments of this Court reveals that its
approach in determining whether a proposed alternative remedy
constitutes
less restrictive means, is simply to demonstrate—
(a)
the extent of the limitation imposed by the proposed less restrictive
alternative;
(b)
that the extent of the limitation imposed by the less restrictive
alternative is less than the one sought;
and
(c)
that it has not been demonstrated that the remedy sought would be
materially more effective
at achieving the object of the
limitation than the alternative remedy would.
[120]
The
seminal decision of this Court in
Makwanyane,
[133]
where the constitutionality of the death penalty was in issue, serves
as a good example.
In
concluding that the death sentence was unconstitutional, this Court
considered whether there were any less restrictive means
available to
achieve the objects pursued by the death sentence. This Court
considered life imprisonment to be such a less restrictive
alternative. A reading of the judgment reveals that, in finding life
imprisonment to be a less restrictive alternative, this Court
did not
make a pronouncement on the constitutionality of life
imprisonment.
[134]
This Court simply enquired into whether—
(a)
prima facie,
[135]
life imprisonment was capable of achieving the constitutionally
permissible objectives pursued via the death sentence;
(b)
the limitation imposed by life imprisonment is less than that imposed
by the death sentence; and
(c)
those defending the death sentence “[had not shown] that the
death sentence would be
materially
more effective
to deter or prevent murder than the alternative sentence of life
imprisonment would [do]”.
[136]
[121]
In
sum, a court has to do no more than what this Court has done in
Makwanayane
as far as the less restrictive means enquiry is concerned. A further,
related ground of criticism in the second judgment is that
“the
ultimate remedy of a declarator or interdict, as opposed to an award
of general damages, makes very little practical
difference to the
calculation of a person as to whether to publish or not”.
[137]
[122]
In raising this drawbridge, the second judgment makes what
appears to me to be a self-defeating assertion as it immediately
leads
to the question: if it is indeed the very threat of a
defamation lawsuit that deters the publication of false speech, what
then
would be the purpose of general damages? If, as the second
judgment finds, they are not punitive (which I accept), do not
assuage
reputational harm any better than a public apology and are
not a true deterrent against publishing false information; then they
really serve no purpose and their infringement of freedom of
expression cannot be justified on any ground in terms of section 36.
In any event, the costs of defending any litigation will, I imagine,
exceed the awards of damages by some margin. The threat of
litigation
is thus serious, weighty, and will be considered carefully by prudent
individuals (and imprudent ones will not be swayed
by it in any
event).
[123]
Notably,
a similar line of reasoning was advanced by Skweyiya J in his
dissenting judgment in
Dikoko
.
[138]
That case concerned the immunity from liability for defamation claims
of municipal councillors. There, Skweyiya J held:
“
It
may
well
be
that it is not so much the eventual outcome of a court case but
rather the possibility of being taken to court in the first
place
which operates as a deterrent. Much research has been conducted into
this idea in the context of sentencing, particularly
with regards to
the efficacy of the death penalty as a deterrent. The research
indicates that it is not so much the sentence which
deters potential
criminal perpetrators but the possibility of getting caught. Just as
deterrence in the criminal law context stems
from the possibility of
getting caught, rather than the range of possible sentences which may
be imposed, so in the civil context,
any ‘chilling effect’
derives most of its potency from the fact that a person who goes
beyond the accepted boundaries
of expression may be sued for
defamation.”
[139]
(Emphasis added.)
[124]
There is plainly some similarity between this minority
approach in
Dikoko
and the reasoning in the second judgment
here. It cannot be gainsaid that the threat of litigation constitutes
a deterrent to the
exercise of free speech. But it does not follow
that, because the threat of getting caught for committing a crime
constitutes a
greater deterrent than the punishment, by parity of
reasoning the threat of litigation constitutes a greater deterrent
than the
damages award or the threat thereof. This is a typical
argument by analogy. Such arguments are only valid to the extent that
the
two things being compared are substantially similar. In this
case, in order to be valid one would have to demonstrate that the
incentives and disincentives for committing crime are the same or
substantially similar to those for committing an act of defamation.
It seems to me that the incentive and disincentive of the two are
markedly different and thus the argument by analogy does not
bear
scrutiny.
[125]
In
any event, the hypothesis postulated here is precisely that –
mere conjecture. Absent any evidence evincing the effect
of the
threat of litigation constituting a greater deterrent to freedom of
expression than any remedy that a court can award following
a
successful defamation claim, there is no basis for the proposition
advanced in the second judgment. In that regard, the approach
of this
Court in
Makwanyane
commends
itself to me. There, the Attorney General had conceded that
there is no proof that the death sentence is in fact a
greater
deterrent than life imprisonment because, the Attorney general
said, it was “a proposition that is not capable
of proof,
because one never knows about those who have been deterred; we know
only about those who have not been deterred, and
who have committed
terrible crimes”. This Court in response held that, while the
Attorney General’s observation
was “
no
doubt true
,
the fact that there [was] no proof that the death sentence [was] a
greater deterrent than imprisonment [did] not necessarily mean
that
the requirements of section 33 [of the Interim Constitution] cannot
be met”.
[140]
[126]
As I
see it, once it is accepted, as demonstrated earlier and as other
courts have accepted on a number of occasions, that general
damages
limit the right to freedom of expression and that the limitation
cannot be justified in terms of section 36 of the Constitution,
the limitation imposed by the threat of litigation itself,
irrespective of its degree, matters little. Absent any proof (as
opposed
to conjecture) that damages for patrimonial loss constitute a
greater deterrent to the exercise of free speech than general
damages,
I expressly refrain from expressing an opinion on which
remedy is the greater deterrent, as discussed by this Court in
Makwanyane
.
[141]
I prefer to confine myself to the challenge before this Court, and no
more. That is the approach adopted in
Makwanyane
that, as I have said, commends itself to me.
[127]
There is a further self-destructive implication in the
second judgment’s assertion. It is this. Accepting for the
moment
that, as the second judgment would have it, the threat of
litigation itself constitutes a greater deterrent than any available
remedy, that proposition appears to fortify my view that awarding
general damages to trading corporations is unconstitutional. This
is
so for the following reason. If it is accepted that: (a) general
damages do indeed limit the right to freedom of expression;
and (b)
the threat of litigation constitutes a greater deterrent to the
exercise of free speech, then it must follow that the limitation
imposed by general damages would further increase the extent to which
the right to freedom of expression is limited. In that event,
if the
cumulative extent of the limitation imposed by both the threat of
litigation and general damages is constitutionally unacceptable,
it
seems to me that general damages, and not the threat of litigation
itself, is the one that must yield to conduce to an overall
limitation that is constitutionally acceptable.
[128]
Then,
the second judgment observes that false speech seldom has any value
(if at all). My colleague states that “[s]uch speech
counts for
little in the recognition that is due to freedom of expression”.
[142]
That is fair comment, but this Court has already provided some
insight in respect of this question. In
Islamic
Unity
,
this Court in endorsing the view of the European Court of Human
Rights in
Handyside
,
[143]
pointed out that section 16 is “applicable not only to
‘information’ or ‘ideas’ that are favourably
received or regarded as inoffensive or as a matter of indifference,
but also to those that offend, shock or disturb.”
[144]
The point was reiterated in
De
Reuck.
[145]
In
Islamic
Unity
,
this Court outlined the purview of that section:
“
Section 16 is in
two parts. Subsection (1) is concerned with expression that is
protected under the Constitution. It is clear that
any limitation of
this category of expression
must
satisfy the requirements of the limitations clause to be
constitutionally valid
.
Subsection (2) deals with expression that is specifically excluded
from the protection of the right. . . . Where the state extends
the
scope of regulation beyond expression envisaged in section 16(2), it
encroaches on the terrain of protected expression and
can
do so only if
such regulation meets the justification criteria in section 36(1) of
the Constitution.”
[146]
(Emphasis added.)
[129]
Thus, where speech does not fall under section 16(2), the
limitation imposed must pass constitutional muster, irrespective of
whether
the limitation relates to defamatory speech. This means that
if both the threat of litigation and the remedy impose a limitation
on free speech, both must pass constitutional muster. Remedies cannot
escape scrutiny simply because they follow after a finding
that
speech is defamatory. It bears emphasis that the question to be asked
here is: prior to any individual making any type of
utterance,
whether known or suspected to be defamatory, does the prospect of
being mulcted in damages deter the free exercise of
free speech? The
enquiry is not whether, after speech has been found to be defamatory
by a court, the prospect of being mulcted
in damages limits the right
to freedom of expression.
[130]
The
second judgment opines that
there
is no reason why the threat of general damages by a trading
corporation should hold some risk to free speech that other
plaintiffs
do not.
[147]
That
opinion does not bear scrutiny. The point is not that general damages
by a trading corporation are a greater risk to free
speech than other
plaintiffs, but rather that they cannot be justified like they can
with natural persons who have hurt feelings,
dignity and self-worth
as expounded earlier.
[131]
Before
concluding on this point, I must discuss the argument made by the
second judgment that awards for general damages are historically
modest and therefore do not pose an unjustifiable threat to freedom
of expression.
[148]
All that
needs to be said in this regard is that this reaffirms the point that
if the awards are modest they do very little then
to assuage
reputational damage. This begs the question, if general damages
awards are so modest, then what purpose do they serve
and why would a
public apology or retraction not be sufficient? As such, general
damages go no further in restoring the rights
of an unlawfully
defamed entity than a public apology or retraction. One could argue
that general damages may be even less effective
at restoring an
entity’s reputation if the award of general damages is not
published in the media, or ordered together with
a public apology or
retraction which makes the unlawful defamation known to the public.
[132]
In sum, the limitation is unjustified and,
absent the qualification proposed, does not bear constitutional
scrutiny in terms of
section 36. In imposing this qualification, we
would be giving recognition to the value of free speech on matters of
public discourse
of genuine public interest, without doing so via a
blanket exclusion of general damages to trading corporations. It is a
less restrictive
means of vindicating a juristic person’s
reputation. That brings me to a final aspect for consideration,
international and
comparative law.
International and
comparative law
[133]
As
is explained in the minority judgment in
SA
Taxi
,
comparable
jurisdictions have in recent years legislatively introduced
innovative remedies aimed at expeditiously repairing damaged
reputation.
[149]
[134]
Libel
as a tort has long been recognised in England. The seminal case of
South Hetton
[150]
led the way regarding whether a juristic person may sue for general
damages for defamation. There, the Court of Appeal held that
an
action of libel will lie at the suit of an incorporated trading
company in respect of a libel calculated to injure its reputation
in
the way of its business, without proof of special damages.
[151]
The
newspaper in that case had published an article strongly critical of
the way in which the plaintiff, a colliery owner, housed
its workers,
and the company had not pleaded or proved any actual damage. It was
argued for the publisher that a corporation could
have no personal
character, and that the article had not related to the business of
the company. The Court of Appeal unanimously
rejected this argument.
Lord Esher MR held the law of libel to be one and the same for all
plaintiffs, be they an individual or
a corporation.
[152]
Lopes and Kay LJJ concurred, with the latter adding that—
“
a
trading corporation may sue for libel calculated to injure them in
respect of their business, and may do so without any proof
of damage
general or special. Of course if there be no such evidence the
damages given will probably be small.”
[153]
[135]
In
Lewis
,
Lord Reid pointed out that a company cannot be injured in its
feelings but only in its pocket.
[154]
Derbyshire
County Council
[155]
concerned the entitlement of a local authority, not a trading
corporation, to sue in libel. In the court of first instance,
Morland J’s
conclusion that the local council could sue
was largely premised on the
South Hetton
decision. On appeal, counsel for the newspaper sought to distinguish
South Hetton
on the ground of the colliery company’s trading character and
counsel for the local authority relied on it. No member of
the Court
of Appeal questioned the decision. Balcombe LJ not only accepted
South
Hetton
as binding for what it decided, but also expressed his agreement with
it. In the House of Lords, counsel for the local authority
cited
South
Hetton
.
Counsel for the newspaper did not criticise it, but distinguished it
as applicable to a company with a business reputation which
a local
authority did not have. In his opinion, with which the other members
of the House agreed, Lord Keith cited
South
Hetton
at some length, and also
Gillian
,
[156]
in which a non-trading corporation (a trade union) had been
assimilated to a trading corporation. Despite finding
that
under English common law a local authority does not have the right to
maintain an action of damages for defamation, Lord Keith
nonetheless
held:
“
The
authorities cited above clearly establish that a trading corporation
is entitled to sue in respect of defamatory matters which
can be seen
as having a tendency to damage it in the way of its business.
Examples are those that go to credit such as might deter
banks from
lending to it, or to the conditions experienced by its employees,
which might impede the recruitment of the best qualified
workers, or
make people reluctant to deal with it. The
South
Hetton Coal Company
case
would appear to be an instance of the latter kind, and not, as
suggested by Browne J., an authority for the view that a trading
corporation can sue for something that does not affect it adversely
in the way of its business.”
[157]
[136]
In
Shevill
,
[158]
decided some three years later by a differently constituted Committee
of the House of Lords, one of the plaintiffs was a trading
corporation and the presumption of damage in libel cases was treated
as part of English substantive law. In sum then, under current
English law a trading company with a trading reputation may recover
general damages without pleading or proving special damage
if the
publication complained of tends to damage it in the way of its
business.
[137]
Then
there are the two cases of
Steel
and Morris
and
Jameel
.
In
Steel
and Morris
,
the
European Court of Human Rights found that the award of damages to a
trading corporation will not necessarily infringe the protection
of
free speech in Article 10 of the European Convention on Human
Rights.
[159]
That case was
decided in accordance with the “
margin
of appreciation” principle. The facts were briefly these. The
defendants had published a pamphlet containing various
defamatory
statements about McDonald’s, a multi-national for-profit
company. McDonald’s sued the defendants for defamation
and won
in the English courts. The defendants approached the European Court
of Human Rights and argued (amongst others) that the
English common
law disproportionally interfered with their Article 10 right to free
speech.
[138]
The
Court refused to find that companies should, “in principle”,
be deprived of a right to defend themselves against
defamatory
allegations. It held that there is an interest in protecting “the
commercial
success
and
viability of companies, for the benefit of shareholders and
employees, but also for the wider
economic
good”.
[160]
Therefore, the Court concluded that the United Kingdom “enjoys
a margin of appreciation as to the means it provides under
domestic
law to enable a company to challenge the truth, and limit the damage,
of allegations which risk harming its reputation”.
[161]
[139]
The
doctrine of margin of appreciation applies when the European Court
for Human Rights is asked to adjudicate on value judgments
made by
European states.
[162]
The
doctrine is self-evidently wholly inapplicable to constitutional
litigation before this Court. The Court in
Morris
and Steel
went on to find that the defendants’ right to freedom of
expression had been violated. One of the reasons was that the damages
awarded against the defendants were disproportionate. The plaintiffs,
despite being large and powerful corporations, were not in
accordance
with the principles of English law required to, and did not,
establish that they had in fact suffered any financial
loss as a
result of the impugned publication.
[163]
[140]
Jameel
concerned
a defamation claim against the appellant, the publisher of
The Wall
Street Journal Europe
,
described in the majority judgment of Lord Bingham as “a
respected, influential and unsensational newspaper”.
[164]
It was sued by the respondents, who were prominent Saudi Arabian
businessmen, for defamation pursuant to an article, headed “Saudi
Officials Monitor Certain Bank Accounts” with a smaller
sub-heading “Focus Is on Those With Potential Terrorist Ties”
published by the appellant in the
The Wall
Street Journal Europe.
One of the main issues was whether a trading corporation is entitled
to sue and recover damages without pleading or proving special
damages.
[141]
The
House of Lords split three-two. Lords Bingham, Hope and Scott all
held that trading corporations should be able to sue for general
damages. Lord Bingham provided a detailed overview of English law,
including the leading cases of
South
Hetton
,
Lewis
and
Derbyshire
County Council
.
He considered the newspaper’s argument that a domestic rule
entitling a trading corporation to sue in libel when it can
prove no
financial loss is an unreasonable restraint on the right to publish
protected by Article 10 of the European Convention
on Human
Rights. That argument was rejected on three principal grounds,
including that the question had already authoritatively
been decided
in
Steel
and Morris
.
[165]
He also rejected the argument of a possible chilling effect that a
claim by a company may have.
[166]
[142]
Importantly, in assessing whether
corporations with a commercial reputation ought to be afforded
redress for unjustified injury
to reputation, Lord Bingham opined:
“
There
are of course many defamatory things which can be said about
individuals (for example, about their sexual proclivities) which
could not be said about corporations. But it is not at all hard to
think of statements seriously injurious to the general commercial
reputation of trading and charitable corporations: that an arms
company has routinely bribed officials of foreign governments to
secure contracts; that an oil company has wilfully and unnecessarily
damaged the environment; that an international humanitarian
agency
has wrongfully succumbed to government pressure; that a retailer has
knowingly exploited child labour; and so on. The leading
figures in
such corporations may be understood to be personally implicated, but
not, in my opinion, necessarily so.”
[167]
[143]
Lord Bingham rejected the notion
that a corporation ought to be restricted to suing only where it can
prove financial loss:
“
First,
the good name of a company, as that of an individual, is a thing of
value. A damaging libel may lower its standing in the
eyes of the
public and even its own staff, make people less ready to deal with
it, less willing or less proud to work for it. If
this were not so,
corporations would not go to the lengths they do to protect and
burnish their corporate images. I find nothing
repugnant in the
notion that this is a value which the law should protect. Nor do I
think it an adequate answer that the corporation
can itself seek to
answer the defamatory statement by press release or public statement,
since protestations of innocence by the
impugned party necessarily
carry less weight with the public than the prompt issue of
proceedings which culminate in a favourable
verdict by judge or jury.
Secondly, I do not accept that a publication, if truly damaging to a
corporation’s commercial reputation,
will result in provable
financial loss, since the more prompt and public a company’s
issue of proceedings, and the more diligent
its pursuit of a claim,
the less the chance that financial loss will actually accrue.”
[168]
[144]
Lord
Hope made the point that while a corporation does not have feelings
that can be injured, “[t]rade is its business, and
it is injury
to its reputation in regard to its trade that is of the essence in
its case”.
[169]
All
that is required, is that a trading corporation must show that it is
liable to be damaged in a way that affects its business
as a trading
company.
[170]
And Lord Scott
agreed that there is no reason of principle why the long-standing
rule of law enabling a company to pursue a remedy
in a defamation
action without the need to allege or prove actual damage should be
changed.
[171]
[145]
Lord
Hoffman and Lady Hale held the opposite view. Baroness Hale
commences her minority speech by stating the trite principle
that
“[t]he tort of defamation exists to protect, not the person or
the pocket, but the reputation of the person defamed”.
[172]
She pointed out that:
“
[T]he
authority for the proposition that a company is in the same position
as an individual is the Court of Appeal decision in
South
Hetton Coal Company Limited v North-Eastern News Association Limited
[1894]
1 QB 133.
This House is therefore free to overrule it, although of
course it would only disturb an authority of such long-standing if
there
were good reason, in modern circumstances, to do so. Among
those modern circumstances is the importance now attached in all
developed
democracies to freedom of expression, especially on matters
of political interest.”
[173]
[146]
Baroness
Hale urged that the Court should scrutinise the impact of general
damages awards for trading corporations in defamation
claims “with
some care to see whether it may have a disproportionately chilling
effect upon freedom of speech”.
[174]
In concurring with Baroness Hale, Lord Hoffmann stated:
“
In
the case of an individual, his reputation is a part of his
personality, the ‘immortal part’ of himself and it is
right that he should be entitled to vindicate his reputation and
receive compensation for a slur upon it without proof of financial
loss. But a commercial company has no soul and its reputation is no
more than a commercial asset, something attached to its trading
name
which brings in customers. I see no reason why the rule which
requires proof of damage to commercial assets in other torts,
such as
malicious falsehood, should not also apply to defamation.”
[175]
[147]
For
the reasons expounded, I am not persuaded by the minority’s
reasoning in
Jameel
.
In any event, Baroness Hale’s opinion does not support the
applicants’ case. All that she held is that a plaintiff
should
be obliged to show a likelihood of financial loss, not actual
financial loss, in order to succeed with an action of
defamation.
[176]
She also
did not seek to saddle corporate plaintiffs with the onus of proving
falsity and intent, as the applicants initially contended,
an
argument which they have now abandoned.
[148]
Likewise, the United Kingdom
Defamation Act 2013, does not assist the applicants. A trading
corporation is not required to plead
and prove special damages. In
order to claim general damages, a plaintiff is required to plead and
prove actual or likely serious
harm.
[149]
Trading corporations are permitted
to sue for general damages for defamation in various other
jurisdictions, albeit often in restricted
form. For example:
(a)
In England, it is required that a trading corporation suffers
financial loss due to defamation. It cannot
sue for general damages.
Courts have required that such companies adduce evidence as to
financial loss to succeed in defamation
suits.
(b)
In New Zealand, section 6 of the Defamation Act 1992 allows a body
corporate to bring a claim for defamation
where the defamatory
publication has caused, or is likely to cause, the body corporate a
pecuniary
loss.
(c)
In Australia, various defamation reforms have totally removed the
right to sue for defamation from companies
with 10 or more employees.
Where a company has fewer than 10 employees, it must still prove that
the publication has caused, or
is likely to cause, serious harm to
the company’s reputation
and
serious financial loss.
(d)
In Germany, a company may not be awarded damages for non-pecuniary
loss according to section 253(1)
of the German Civil Code.
(e)
In Canada, juristic persons can sue for general damages for
defamation. Modest awards for general damages
are the norm for
corporate plaintiffs in the absence of proof of actual loss.
(f)
In the United States of America, public figures must prove actual
malice on the part of the defendant
to be successful in corporate
libel claims.
Conclusion
[150]
I hold that an unqualified award of general damages to a trading
corporation in respect of harm to its reputation
limits the right to
freedom of speech. A trading corporation has no hurt “human”
feelings to assuage, to provide solace
by way of an amount for
general damages. In this regard, it does not have a right to dignity
and cannot lay claim to the rights
in section 10 of the Constitution.
Instead, it has a common law right to its good name and reputation,
protected by the Constitution’s
equality provisions, and can
enforce that right by a claim for general damages under the
qualification outlined, namely, excluding,
in a court’s
discretion, in cases of public discourse in public interest debates.
The underlying rationale for this is that
it bears recognition that a
trading corporation has a personality right to protect its reputation
and good name. This extends beyond
mere goodwill. Subject to this
qualification, general damages are a competent remedy for the
unlawful defamation of a trading corporation.
Absent this
qualification, a claim for general damages for defamation poses an
unjustifiable limitation on freedom of expression.
Costs
[151]
Both parties have attained some measure of success. There
should consequently be no order as to costs, as both are private
parties
engaged in this litigation.
Order
[152]
The following order is issued:
1.
Leave to appeal directly to this Court is granted.
2.
The appeal is upheld to the extent that it is declared that, save for
where the speech forms
part of public discourse on issues of public
interest, and at the discretion of the court, trading corporations
can claim general
damages for defamation.
UNTERHALTER
AJ (Kollapen J concurring):
[153]
I have had the pleasure of reading the judgment of my brother,
Majiedt J (first judgment). The first
judgment provides a
full exposition of the following propositions. First, a juristic
person has no right to human dignity, and
hence no right to the
protection afforded by section 10 of the Constitution. Second, a
trading corporation, at common law,
has a right to the
protection of its reputation. To impugn the reputation of a trading
corporation may cause loss of goodwill.
But the harm it suffers may
extend beyond patrimonial loss. A trading corporation thus enjoys an
action under the
actio iniuriarum.
Third, a trading
corporation that suffers harm to its reputation may claim general
damages. However, such a claim is not unqualified
in that if the
defamatory speech forms part of public discourse on issues of
legitimate public interest, then a trial court has
a discretion to
exclude an award of general damages. This qualification is required
because an award of general damages to a trading corporation
that has been defamed would otherwise impermissibly limit the right
to freedom of expression guaranteed by section 16 of the
Constitution, and cannot be justified under section 36 of the
Constitution.
[154]
Since there are many aspects of the first judgment with which
I am in agreement, I commence by setting these out. First, a trading
corporation has a right to protect its reputation. The reputational
harm done to a trading corporation is not reducible to its
goodwill
and, as a result, a trading corporation enjoys an action under the
actio iniuriarum
to protect its reputation. Second, and
for reasons I shall offer, a trading corporation is not
precluded from claiming general
damages under the
actio iniuriarum
.
This is so because general damages are not confined to recompense for
hurt feelings, which only a natural person, and not a trading
corporation, may suffer. General damages are compensatory and not
punitive, and may therefore be awarded to a trading corporation.
[155]
On a number of matters, regrettably, I am unable to agree with
the first judgment. I commence with the issue raised in this case
as
to the claim of a trading corporation to the constitutional right of
dignity.
[156]
I entertain some doubt that the right conferred by section 10
of the Constitution cannot be enjoyed by a trading corporation. The
injunction of section 8(4) of the Constitution is that a
juristic person is entitled to the rights in the Bill of Rights to
the extent required by the nature of the rights and the nature of the
juristic person. Section 10 of the Constitution is headed
“[h]uman dignity”. But the right of everyone to have
their dignity respected and protected is not confined to a narrow
conception of dignity, that is to say, the idea of dignity as a
person’s sense of self worth. Dignity also embraces
a
person’s reputation. That is the regard with which others hold
a person. We do not, in general, give a parsimonious reading
to the
scope of the rights entrenched in the Bill of Rights. On the
contrary.
[157]
It follows that the right to dignity in section 10 includes
the right to reputation. The question then is this: who can enjoy the
right? Section 10 answers this question: everyone, it tells us.
Whether a trading corporation falls within the class of everyone,
depends upon an application of section 8(4) of the Constitution.
There is little question that a juristic person is capable of
enjoying a reputation, and if, as seems uncontroversial, the content
of section 10 extends to dignity in the sense of reputation,
then
there seems little reason why the nature of the right should not be
of application to a juristic person. The requirements
of section 8(4)
are satisfied. On this reasoning, everyone includes a trading
corporation.
[158]
The textual obstacle to this interpretation is the heading of
section 10 – “[h]uman dignity”.
That can be understood to mean that everyone in section 10
references natural persons as legal subjects and excludes
juristic persons.
That would be to interpret section 10 as an
exception to the general application of section 8(4), an
interpretation of some
difficulty. The heading can also be understood
to mean that the conceptions of dignity ordinarily attributable to
humans is what
section 10 protects. Whether those conceptions of
dignity give rise to any entitlement by a juristic person is a
question
determined by section 8(4). And since dignity in
section 10 embraces reputation, and a trading corporation has a
reputation
to protect, there is no reason to withhold the entitlement
of a juristic person to protect its reputation under section 10.
[159]
I
recognise that
Hyundai
[177]
says that juristic persons are not the bearers of human dignity,
and
Tulip
Diamonds
[178]
followed suit. This may have appeared axiomatic, but as the analysis
offered above indicates, there are interpretative questions
that
entail some greater nuance. However, for reasons that will become
clear, I do not need to make a dispositive interpretation
on this
score. For even if a trading corporation is not entitled to the
protection of its reputation under section 10, the
trading
corporation does enjoy a common law right to protect its reputation.
The first judgment also supports this proposition.
[160]
After the decisions of the Appellate
Division in
Dhlomo
and
Caxton
,
it was made clear that, at common law, a trading corporation can sue
for defamation for an injury
to
its
reputation. Thus, a trading corporation has a common law right to the
protection of its reputation. This much is uncontroversial.
What has
occasioned more difficulty is whether a trading corporation should
enjoy the remedy of damages for non patrimonial
loss in respect
of an actionable defamation.
[161]
On
this point, the Supreme Court of Appeal in
SA
Taxi
was
divided. Brand JA, writing for the majority, held that damages
for defamation, at least in the modern law, need not be
based on
giving solace for injured feelings. Non
patrimonial
damages, even in the absence of proof of hurt feelings, may be
awarded for the harm done to a person’s reputation. So, even
though a trading corporation has no feelings to hurt, it does have a
reputation that may suffer from a defamation in ways that
do not
amount to lost profits or a diminution of its goodwill.
Non patrimonial damages compensates for that harm.
[179]
[162]
Nugent JA in
SA Taxi
held a different position. That
difference is narrow, though important, and its proper demarcation
warrants restatement. Nugent JA
affirmed the prior holdings of
the appeal court that a trading corporation has an interest in its
reputation that is deserving
of legal protection and it is entitled
to redress in an action for damages. As he framed the matter:
“
I see no reason
why a trading corporation should not have the right to insist that
others must not damage its good name unless they
show legal
justification for doing so, and that it is entitled to a legal remedy
when that occurs.”
[180]
The
point of difference was this: what should that legal remedy be?
[163]
Nugent
JA considered an award of non-patrimonial damages to a defamed
trading corporation to be a punitive award. The trading
corporation has no feelings to assuage. Damages are for compensation
not punishment and, if we cannot identify what is being compensated
by an award of non-patrimonial damages, the law should rather look to
other remedies. The Constitution does not permit of punishment
without the safeguards of criminal proceedings.
[181]
An award of non patrimonial damages can therefore not be a
justified intrusion upon freedom of expression. Other remedies
would
serve to vindicate the reputational interests of a trading
corporation. These remedies are an interdict, declaratory relief,
and
the publication of a retraction or a correction, with or without an
apology.
[164]
What
divided the appeal court in
SA
Taxi
was this: the majority held that non patrimonial damages could
be awarded to a trading corporation that has suffered an actionable
defamation, and that to do so entailed no unjustified limitation of
the constitutional right to freedom of expression.
[182]
The minority found an award of patrimonial damages, in these
circumstances, to be punitive damages and constitutionally
objectionable
for this reason.
[183]
[165]
The
first judgment favours the position taken by the majority in
SA
Taxi
that,
in principle, at common law, the infringement of a trading
corporation’s right to its reputation entitled it to sue
for
general damages for the non-patrimonial harm suffered by it.
[184]
[166]
I too agree that the award of general damages to a trading
corporation is not excluded, contrary to Nugent JA’s holding in
SA Taxi.
The premise of Nugent JA’s judgment is
that because a trading corporation has no feelings that may be hurt,
the only
basis for an award of general damages to a trading
corporation is absent. And hence, such an award is not compensatory
but punitive.
[167]
That premise, in my view, only holds good if no basis can be
found that would permit of the conclusion that an award of general
damages to a trading corporation for defamation is compensatory.
Nugent JA considered there to be none. That, however, is not so.
It
is uncontroversial that, whatever else they may do, general damages
offer compensation for hurt feelings. They do so, not because
such
feelings permit of any metric for the quantification of that harm;
they plainly do not. General damages for hurt feelings
is solace in
the form of money. A monetary award compensates only in the sense
that it is recognition of the hurt inflicted. The
award is not
restitutionary. The hurt, once inflicted, cannot be taken away. But a
court can mark what has been done by a monetary
award. It is solace.
It is restorative in that it recognises the harm and requires that
money be paid. In this sense it is compensatory.
[168]
If that is so of hurt feelings, why is an award of damages not
apt to compensate for harm to the reputation of a trading entity that
does not amount to patrimonial loss? There are aspects of reputation
that are of great importance to a trading corporation
but are
not reflected as goodwill, nor as a quantifiable asset of the firm.
It is the firm’s social capital. It does not
appear in the
firm’s accounts. But it is nevertheless of value, seen most
clearly when it is harmed and, sometimes, when
that harm leads to
ruination. The firm that loses public trust, or is no longer well
regarded by employees, or is treated with
suspicion by suppliers, is
diminished, even if the harm that it suffers by reason of an unlawful
defamation cannot be fully quantified
as lost profits.
[169]
Why then should this harm be any less compensable by way of
general damages than the harm arising from hurt feelings? The
harm
is real. It flows from the reputational diminishment that the
defamation inflicts. Like hurt feelings, the award cannot put back
what has been taken from the firm in this dimension. But it is
restorative. It marks the best a court can do to recognise this
harm.
And if it is thought that a monetary award is a modest form of
recognition, it is rather more so than a mere declaration
of
illegality. A monetary award may be an imperfect form of compensation
for this type of harm, but it is no less so than in the
case of
general damages for hurt feelings.
[170]
In my view, the common law has recognised that general damages
are a competent remedy for the unlawful defamation of a trading
corporation.
Its compensatory function has no more or less utility
than its recognition in the case of the hurt feelings suffered by a
natural
person as a result of a defamation. Such damages are not
punitive. Once this is so, the holding of Nugent JA cannot
prevail.
[171]
What
then is the constitutional infirmity that afflicts the recognition at
common law of the trading corporation’s remedy
of general
damages for an actionable defamation? The first judgment finds that
affliction in the following way. First, an award
of general damages
to a trading corporation, unlike an award of damages for patrimonial
loss, has a chilling effect on free speech
and, hence, is a severe
limitation of the right of freedom of expression.
[185]
Second, a consideration of the factors in section 36 of the
Constitution does not justify that infringement without a
qualification
of the entitlement of the trading corporation to
general damages.
[186]
Freedom of expression commands an important place in our
constitutional landscape: it is the lifeblood of a vibrant democracy
and a wellspring of moral agency.
[187]
A trading corporation’s right to reputation is not sourced
in the Constitution. It is a lesser right and, hence, compensation
for its infringement carries less weight as a basis to justify the
chilling effect that an award of general damages has upon a
prized
constitutional right.
[188]
Furthermore, speech that takes place by way of public debate on
matters of importance engages the very core of the right to freedom
of expression and, thus, a constraint on this species of expression
requires greater justification.
[189]
Large trading corporations may command greater awards of general
damages, and thus pose a greater danger to freedom of
expression.
[190]
Finally, less restrictive remedies are available to the trading
corporation: an interdict, a declarator, a retraction or an
apology.
[191]
[172]
These considerations lead the first judgment to the conclusion
that, in a case where the trading corporation has been unlawfully
defamed and claims general damages, the court has a discretion
to exercise as to whether to award general damages. Where
the
defamatory speech forms part of public discourse on issues of
legitimate debate, a court would incline against an award of
general damages. The gratuitous defamation of a trading
corporation, engaging no issue of public interest, would count
strongly
in favour of making an award. By recourse to this Solomonic
judicial discretion, a proper balance is struck between freedom of
expression and the reputational interests of the trading corporation.
[173]
There is a seductive attraction that attaches to the
resolution of hard questions of law by recourse to discretionary
judgments
that take account of conflicting values so as to avoid
their conceptual resolution. With no small measure of regret, it is
an attraction
to be resisted.
[174]
I commence with a consideration of the first judgment’s
diagnosis of the constitutional infirmity that attaches to an award
of general damages to a trading corporation that has been
unlawfully defamed.
[175]
If,
at common law, reputational harm may be compensated by an award of
general damages, why does this pose some special, unjustifiable
risk
to freedom of expression at the instance of trading corporations that
other remedies sought by trading corporations do
not? Given the
scale of commercial operations undertaken by some
trading corporations, it is logical to conclude that it is
the
claims of trading corporations to compensation for patrimonial
loss that would pose the greatest threat to plaintiffs
who would
exercise their rights to free speech. This is so because a
trading corporation’s loss of profits, caused by
the
unlawful defamation, may be sizeable and quantifiable. The
first judgment finds, on the contrary, that general damages
are
likely to be greater, and hence pose a greater threat to freedom of
speech. That is not so. At common law, awards of general damages
in defamation cases for non-patrimonial harm have been modest,
reflecting the recognition by the courts that the basis of such
awards is somewhat impressionistic, and hence caution is warranted.
Yet the first judgment grants the constitutional validity
of
damages for patrimonial loss, but not for general damages. Indeed,
the first judgment holds that general damages, in contrast
to
alternative remedies, such as damages for patrimonial loss,
constitute a severe limitation on the right to freedom of
expression.
[192]
[176]
The
first judgment considers a trading corporation to enjoy a valid claim
to damages for patrimonial loss caused by defamatory speech
but holds
that awards of general damages made to trading corporations have a
chilling effect on free speech.
[193]
This is said to reflect an important difference in the two types of
damages. The first judgment explains that the larger the
corporation, the greater its potential loss of future profits that
would constitute general damages and hence the chilling effect
of an
award of such damages.
[194]
[177]
Our law, in my respectful view, reflects the very opposite of
this position. It is damages awarded to trading corporations for
patrimonial
loss that may be sizeable because of the commercial scale
of the enterprise, the loss of profits that may result, and the
ability
to quantify such loss. Awards of general damages to trading
corporations are generally modest, reflecting the different
compensatory
basis, as I have explained, of such awards. The
particular harm to free speech that arises from the award of general
damages to
a defamed trading corporation is not explained by the
enhanced threat such damages pose, in contrast to an award of damages
for
patrimonial loss. Quite the reverse is true. And so the first
judgment leaves unexplained why general damages have harmful effects
upon free speech that damages for patrimonial loss do not.
[178]
The
first judgment goes on to explain that the constitutional validity of
damages for patrimonial loss is not an issue with which
this case is
concerned.
[195]
And, in any event, there are important differences between
patrimonial and general damages.
[196]
The first judgment observes that they are remedies that arise
from different actions, having distinctive remedial purposes.
That is
indeed so. But it is not clear how these differences explain why it
is that general damages awarded to a defamed trading corporation
pose some special danger to free speech that damages for patrimonial
loss do not. And while the constitutional validity of damages
for
patrimonial loss is not directly in issue, the first judgment draws a
distinction between the two types of damages to justify
its
conclusion as to the risk of special harm to free speech resulting
from awards of general damages to trading corporations.
This ground
of justification, in my view, cannot be made out.
[179]
The
first judgment endorses the proposition that the consideration of the
availability of less restrictive means in a section 36
analysis does
not entail an enquiry into the constitutionality of the less
restrictive means.
[197]
I have altogether less confidence that this proposition can hold
good, formulated in a manner so unqualified. I have some doubt
that
this Court in
Makwanyane
would
have raised no constitutional query if serial torture had been
proposed as a less restrictive means of punishment than the
death
sentence. However, the proposition relied upon in the first judgment
need not be resolved because it fails to advance the
enquiry. The
other remedies available to a defamed trading corporation that the
first judgment considers unobjectionable are not
shown to be less
restrictive means to achieve the same purpose as an award of general
damages. The first judgment, as I have endeavoured
to show, has not
provided any basis, for example, to suppose that damages awarded for
patrimonial loss to a trading corporation
are less restrictive
of free speech. Quite the contrary seems probable. Nor indeed are the
other remedies available to a defamed
trading corporation less
restrictive means to achieve the same purpose. Each of these remedies
has a distinct remedial purpose.
[180]
It is also not evident why the award of non-patrimonial
damages at the instance of a trading corporation poses a
distinct and
special danger to freedom of speech. Why does a wealthy
individual with a thin skin and deep pockets not constitute an equal
or
greater danger? The distinction that the first judgment would
appear to rely upon is the claim that a natural person has the right
to dignity in section 10 of the Constitution. But that is simply
a reason why the risk of harm to freedom of speech has to
be more
readily tolerated. It is not a reason to suppose that general damages
claimed by natural persons are any less inimical
to freedom of speech
than such a claim made by a trading corporation. All depends
upon the contingent features of a particular
plaintiff and not
whether the plaintiff is a trading corporation.
[181]
If, as I understand the first judgment, a trading corporation
will remain entitled to other remedies at common law to seek redress
for an unlawful defamation, and these remedies are beyond
constitutional reproach, it is hard to see why that is so, but
general damages
are constitutionally suspect. The threat of
litigation by a trading corporation is the source of the
constraint on a defendant
in deciding whether to publish a defamatory
statement. The ultimate remedy of a declarator or interdict, as
opposed to an award
of general damages, makes very little practical
difference to the calculation of a person as to whether to publish or
not. The
remedy of disproportionate significance is a claim for
patrimonial loss, but that is considered by the first judgment
to be
constitutionally benign.
[182]
The first judgment considers these observations to be
self-defeating on the basis that if general damages pose no greater
deterrent
to defamatory speech than any other remedy, then such
damages serve no purpose and cannot be justified in terms of
section 36.
This is unavailing. It fails to distinguish purpose
and effect. The award of general damages to a trading corporation has
an entirely
legitimate purpose the compensation of non-pecuniary loss
by reason of reputational harm. That is plainly a matter to be
weighed
in terms of section 36(1)(b) and (d) of the Constitution, as
to the importance of the purpose of compensation by way of general
damages. The
effect
of an award of general damages upon free
speech is a different matter.
[183]
The first judgment holds that general damages sought by a
trading corporation pose some special danger to freedom of
speech
that other remedies do not. That danger does not arise, as I
have pointed out, from any distinctive deterrence of defamatory
speech
to which general damages give rise. But it does not follow
that an award of general damages to a defamed trading corporation is
therefore gratuitous, and for this reason constitutionally
objectionable, as the first judgment posits. Our law provides
remedies
for civil wrongs primarily to right these wrongs. That
means, to make good, as best the law can, the harm done to, and
reasonably
apprehended by, the person harmed. There is agreement that
an award of general damages to a defamed trading corporation is
compensation for its reputational harm. Such an award is in no sense
gratuitous. A consequence of such an award or the threat of
such an
award is that it may deter defamatory speech. Such an effect may
warrant consideration in an analysis under section 36.
The
effect may be modest or indistinguishable from the effects caused by
other remedies. But this does not mean that an award of
general
damages is pointless.
[184]
The
first judgment engages my observation that the threat of litigation
may do much of the work to deter defamatory speech, rather
than the
remedy that is ultimately given by the courts. The first judgment
queries the empirical basis of this observation. It
goes on to say
that since general damages have been demonstrated to limit freedom of
expression and cannot be justified, “the
limitation imposed by
the threat of litigation itself, irrespective of its degree, matters
little”.
[198]
The threat of litigation is simply, on this view, an additional
danger to freedom of speech, that is to say, in addition to the
danger posed by an award of general damages.
[185]
This engagement is a distraction. The issue is not what
evidence best confirms what it is that deters free speech, whether it
be
the threat of litigation or its resulting remedy. The issue is
rather what is it about an award of general damages to a defamed
trading corporation that poses a
distinctive
danger to freedom
of speech that other remedies do not. The first judgment does not and
cannot demonstrate this danger, and hence
cannot justify why general
damages sought by a trading corporation warrant constitutional
condemnation when other remedies are
constitutionally permissible.
This is not simply a failure of consistency. It is a pointer, as I
shall endeavour to explain, to
the conclusion that the source of
constitutional difficulty in this case is not to be found at the
level of remedy, but rather
the substantive consideration of what
defamatory speech the Constitution may require a trading corporation
to suffer in the interests
of public debate. That is to say, the true
issue is not about remedy but about the right to a substantive
defence of public debate:
the very terrain that the applicants
declined to pursue before us.
[186]
The first judgment thus proceeds from the unsubstantiated
premise that the claim of a trading corporation to an award of
general
damages poses some special risk to freedom of expression that
its claim to other remedies does not. It further assumes, but does
not explain, that a trading corporation invariably poses a greater
risk to freedom of expression that natural persons do not.
[187]
The
holding of the first judgment also gives rise to considerable
anomaly. The legal form of a business is often a matter of
convenience.
There is a diversity of legal forms in which commerce
takes place: incorporated small businesses; unincorporated but very
large
partnerships; incorporated professional partnerships; sole
traders; commercial trusts and large public listed companies. The
reputational
harm that is visited upon a business by a defamatory
statement is not determined by the legal form in which the business
is conducted.
Yet the holding of the first judgment considers
there to be a constitutional principle that would incline against the
award
of general damages to a trading corporation where the defendant
engaged upon public discourse for a legitimate purpose, but not
to an
unincorporated business.
[199]
I shall refer to this principle as the principle of presumptive
exclusion. The principle of presumptive exclusion would thus incline
to deny a claim for general damages brought by a small
incorporated family business but not to an unincorporated firm of
highly paid management consultants. Indeed, the principle of
presumptive exclusion, favoured by the first judgment, gives
rise to arbitrariness and, in no small measure, the principle fails
to accord to everyone the right to equal protection and benefit
of
the law, as section 9(1) of the Constitution requires.
[188]
It is difficult to discern whether the constitutional danger
to freedom of speech that the first judgment apprehends arises
because
the plaintiff is incorporated or because the plaintiff is
engaged upon commercial trade. If the latter, the law should require
that all whose businesses are defamed, no matter the size of the
enterprise, incorporated or not, would have their claims determined
on a discretionary basis under the principle of presumptive
exclusion. The breadth of such a position is untenable. Why should
a
small family business unlawfully defamed pose any such danger? If the
issue is one of incorporation, what then of incorporated
non trading
entities? Would a not for profit company that does
charitable work and suffers reputational harm have
no claim for
general damages? This would visit a substantial hardship given that
it has no claim for lost profits. Or would we
allow a charitable
trust that is similarly harmed to claim such damages? These questions
are not answered in the first judgment
because it does not ultimately
explain under what compelling principle the claim of a
trading corporation to general damages
holds some special
risk for freedom of speech that other persons do not.
[189]
The
first judgment recognises that to distinguish between different types
of entities in awarding general damages would be arbitrary
but holds
to the position that there remains a defensible basis to treat
natural persons differently from “all corporate
entities,
incorporated or not, both trading and non-trading, for profit and
not”.
[200]
This distinction is unclear. It would appear to bring under the
principle of presumptive exclusion natural persons who run
businesses,
but otherwise exclude natural persons who do not. It
would exclude natural persons who undertake charitable work, but
include a
trust or not-for-profit company that does the same work. It
treats donations lost to a not-for-profit company as a species of
goodwill
diminution resulting in patrimonial loss that could be
claimed (a notion of no small conceptual difficulty), but would
render damage
to the not-for-profit company’s other
reputational interests presumptively suspect. The distinction relied
upon in the first
judgment gives rise to incurable anomaly.
[190]
An
award of general damages to a trading corporation is a remedy that a
court may only consider once it has determined that the
trading
corporation has been unlawfully defamed. The defendant has thus
failed to establish a defence, including truth in the public
interest. That does not necessarily mean that it is proven that the
defamation is false. However, in many cases the speech at issue
will
have little or no claim to protection on the basis of freedom of
speech. In
Khumalo
,
[201]
this Court observed that the publisher of false speech does not
have a strong constitutional speech interest in the publication
of
false material. Once that is so, there is no basis,
a
priori
,
to rule that the unlawful defamation of a trading corporation
presumptively excludes a claim by it for general damages on the
basis
that this remedy infringes freedom of expression. If the speech in
issue does not substantially engage the speech interests
that freedom
of expression protects, then an award of general damages is doing no
incremental harm to that freedom. That is so
because the speech in
question forms no part, or scarcely any part, of the freedom that is
constitutionally protected. We are inevitably
driven back to the
difficult question that we were ultimately not asked to answer, that
is: when is defamatory speech that engages
an important question of
public debate lawful? This is not an issue of remedy but of rights.
[191]
The
first judgment confirms the decisions of this Court, that section 16
does not only protect information or ideas that are favourably
regarded or innocuous.
[202]
That is undoubtedly so. The first judgment considers that this
jurisprudence entails adherence to the proposition that a remedy
cannot escape constitutional scrutiny on the basis that the speech is
defamatory.
[203]
This proposition is an oversimplification. Where defamatory speech
substantially fails to engage the speech interests that freedom
of
expression protects, a category of speech that extends beyond speech
identified in section 16(2), the remedy of general
damages can
do no harm to that which is not protectable. And hence there is no
presumptive basis to hold that general damages sought
at the instance
of a trading corporation in respect of all defamatory speech is
unconstitutional.
[192]
The first judgment, in my view, does not establish a
compelling basis to find that the claim of a trading corporation,
unlawfully
defamed, to seek general damages is presumptively
constitutionally suspect.
[193]
Nor, in my respectful view, does the limitation analysis
undertaken in the first judgment yield the unequivocal
conclusions
reached. The first judgment’s limitation
analysis rests heavily on the proposition that the right to freedom
of expression
is a constitutional right that secures our democratic
order and the moral value of persons, whereas the common law right of
a trading
corporation to its reputation is a lesser order of right. A
remedy that harms freedom of speech, and redeems a lesser right, is
hard to justify. And, in particular, where freedom of speech is
exercised to engage public discourse on issues of legitimate debate,
that is ever more so.
[194]
The importance of freedom of speech as the bedrock of a
flourishing democracy cannot be doubted. But the ritual incantation
of this
proposition should not avoid another truth. False speech (and
sometimes also hateful speech) that harms another’s reputation
will often have little or no value. Such speech counts for little in
the recognition that is due to freedom of expression. It is
sometimes
not protected speech to which a person may claim an unqualified right
to freedom of expression.
[195]
Freedom of speech must be understood not only in an idealised
world where virtuous citizens engage each other in public discourse
to debate the issues of the day, and where an error of falsity is a
frailty of editorial oversight, an unguarded excess of legitimate
debate, or a needless exaggeration. The real world of speech today is
dominated by social media platforms. These platforms are
used by
billions of people. Content is published to millions in an instant.
The platforms assume little responsibility for the
content that is
posted. They remove content or access in very limited circumstances
and they deny that they are media owners burdened
with duties for the
material that appears on their sites. Social media platforms are at
once the greatest means by which freedom
of speech may be exercised,
and the greatest engine for falsity. They enhance democratic
participation and threaten its foundations.
[196]
The law and the Constitution must thread its way through these
contradictions. That is a matter of no small difficulty.
[197]
The law of defamation tests truth as a defence, and the
failure of a defendant to make out this defence may mean that not all
defamation
is assuredly false. But the incidence of the onus at
common law cannot avoid the larger point of principle that many
species of
defamatory speech are false (and sometimes also hateful).
They can be extremely harmful to the reputation of persons, and it is
difficult in these circumstances to understand what freedom is being
justifiably exercised in publishing such speech. This is no
less true
when a trading corporation is defamed. In sum, it is not the case
that the publication of defamatory speech is invariably
a legitimate
exercise of freedom of speech. In some instances, it is not.
[198]
On
the other hand, the right of persons to protect their reputation
matters. That is no less so for a trading corporation. As the
first
judgment makes plain, the reputation of a trading corporation is not
simply an asset that is used to generate profit.
[204]
Trading corporations are firms of great diversity, from large
and powerful companies to small businesses that support a meagre
income for a person or a family. Yet for all their diversity, these
firms cannot simply be reduced to their function of making
private
profits. They have social responsibilities beyond this. The
reputation of a trading corporation is part of its social
capital. This constitutes a valuable part of what a
trading corporation requires to discharge its social
responsibilities.
In a world where social media permits the
exchange of information in a largely unregulated way to millions of
people in an
instant, we should not want to discount the risk thus
posed to reputation and abdicate the law’s response. The right
of a
trading corporation to protect its reputation matters, and the
common law’s protection of that right must be carefully
weighed.
[199]
Of course, between the polarities I have described of false,
worthless speech and the valuable reputational interests of trading
corporations, there are many gradations. So, for example, there is
speech that turns out to be false but was published with reasonable
care in the public interest. There are claims to reputational
protection from scoundrels or corporations that engage in
exploitative,
wrongful or irresponsible conduct and use the law of
defamation to hide their misdeeds. There is speech which may be
controversial,
even hurtful, that is the lifeblood of a free and
democratic society and should not be supressed. Navigating these
differences
is what the common law of defamation has sought to do.
Whether it has done so properly to balance the rights of persons to
reputation
and freedom of speech under the discipline of the
Constitution, is a matter of the greatest importance.
[200]
I
recognise that the first judgment has drawn a particular line to
demarcate where the right of a trading corporation to its reputation
by way of a claim for general damages cannot justify a limitation of
free speech. It holds that speech that engages public discourse
on
issues of legitimate debate should presumptively be free of the
burden of liability to pay general damages to trading corporations
defamed by that speech.
[205]
I will call such speech “public speech”.
[201]
This delineation runs into the following difficulties. As I
have sought to explain, the correct position is not determined by
casting
freedom of expression as a higher order right. Its status as
a constitutional right does not avoid the many complexities as to
when the right is engaged and how strongly it counts. Not all speech
enjoys the same protection, nor does it trump every claim of
a
trading corporation to the full protection of its reputational
rights.
[202]
The first judgment implicitly recognises this, and hence its
adoption of public speech as the basis upon which a trading
corporation
may be required to forego general damages. But the
very concepts that constitute public speech fail to define speech
that
may warrantably free those responsible for it from the claims of
defamed trading corporations seeking general damages. Public
discourse is speech that takes place in public. Social media is the
town square writ large. It is pre eminently the platform
of
public discourse. Issues of legitimate debate is a concept of
bountiful elasticity. But a subject may be one of legitimate debate
and yet what is said may be false, even hateful, and reputationally
ruinous. So, for example, if on social media persons are
posting
about whether an election was fraudulently stolen, that is public
discourse on an issue of legitimate debate. Say a post
appears that
states that particular trading corporations funded the campaign
of the successful party using the proceeds of
child prostitution. The
post is false. Is the author of the post free of liability to pay
general damages?
[203]
The first judgment would say so, unless it is found that the
falsity of the statement removed it from constitutional protection.
But if that is so, it is the falsity or truth of the statement and
its reputational repercussions that is doing the work to decide
whether to exclude the payment of general damages, and not the
concept of public speech.
[204]
This example illustrates the fundamental difficulty at the
heart of the first judgment. The issue to be determined is
whether
a trading corporation that has been unlawfully defamed is
entitled to general damages. But in deciding whether this remedy is
constitutionally
permissible, the analysis must proceed from the fact
that the trading corporation has been unlawfully defamed.
[205]
That gives rise to four interconnected difficulties that I
have traversed. First, it is inexplicable why general damages cause
some
special harm to freedom of speech that other remedies enjoyed by
the trading corporation do not. Second, there is no reason why
the
threat of general damages by a trading corporation holds some risk to
free speech that other plaintiffs do not. Third, the
right to freedom
of speech must take account of what speech is used, how it is used,
and with what consequences. The right does
not have abstract primacy
over reputational rights simply because it is a constitutional right,
and the right to reputation of
a trading corporation is, according to
the first judgment, a mere common law right. If the unlawful
defamation is a blatant
falsehood that does great reputational harm,
the right to freedom of speech has no primacy. Fourth, the
presumption the first judgment
crafts in favour of public speech
cannot do the constitutional work required of it, not only by reason
of its vague elasticity,
but also because it cannot define the
protection it would offer in the face of falsehood of reputational
consequence.
[206]
For these reasons, I find no case has been made out to show
that the claim of an unlawfully defamed trading corporation to
an award of general damages is constitutionally excluded, whether
presumptively or otherwise. I also do not consider that even if
such
a case could have been made, the limitation analysis would fail to
justify the recognition of such a claim. There are many
circumstances
in which unlawful defamatory speech is not speech warranting
constitutional protection or at least not protection
of a kind that
would immunise it from the claim of a defamed trading corporation
to general damages. That claim is specific.
It seeks compensation for
a particular species of loss. There is no evident reason why a
trading corporation should forego
that claim for compensation
simply because other remedies are available to it. The obligation to
pay compensation arises from unlawful
speech that has caused
reputational harm. The extent of the limitation upon speech that
comes about by reason of the liability
to pay general damages is
bounded by the starting premise that the speech is unlawful. That is
itself a justified limitation.
[207]
I should add that I have much sympathy, indeed admiration, for
the efforts of the first judgment to find a
via media
so
as to redeem the value of free speech in a free and democratic
society. Free speech is an essential right. Those who wish to
pursue
a cause should be heard and their speech may be robust. The
difficulty in this case is that the applicants abandoned their
defence on the grounds of legality, and left this Court to
decide upon the constitutionality of a particular remedy. That
left
the applicants having to show that the trading corporation’s
claim for general damages was unconstitutional in the face
of the
inevitable premise that the applicants must be taken to have
unlawfully defamed the mining companies with everything that
premise
entails. A constitutional challenge that would seek to expunge a
compensatory remedy that makes good reputational harm
caused by an
unlawful defamation, and then to single out trading corporations
alone for such expungement, is a bridge too
far.
[208]
However,
there are issues of great importance that this case did not
ultimately need to resolve, but which will require consideration
in a
proper case. I reference the analysis with which
Khumalo
ended.
In
Khumalo,
this
Court pointed out the following constitutional difficulty: while a
person cannot claim a strong constitutional interest in
protecting
their reputation against the publication of truthful but damaging
statements, neither do publishers have a strong constitutional
speech
interest in the publication of false material.
[206]
Khumalo
went on
to observe that burdening either plaintiffs or defendants with the
onus of proving a statement to be true or false was a
“zero sum game”
[207]
which, in that matter, this Court was saved from having to resolve
because
Bogoshi
[208]
had introduced a defence of reasonable publication.
[209]
Bogoshi
could not have anticipated the revolution that
ubiquitous social media has wrought upon the world.
Bogoshi
looks back to a time when conventional media, and in particular
the press, was the principal means by which freedom of expression
was
enjoyed on a large scale. That world has been overtaken. What may now
be considered the media, and to whom a defence of reasonable
publication should apply are matters of great importance. More
generally, whether the constitutional right to freedom of expression
permits certain types of speech to be used, by certain actors, for
determined objects, even though that speech may be false and
defamatory is a question of legality that the applicants, as
activists, may have raised, but ultimately did not pursue. Their
challenge was limited to the availability of a remedy, namely
general damages to trading corporations. That challenge must
fail.
[210]
In the result, I would dismiss the appeal with costs,
including costs of two counsel.
For the
Applicants:
G Budlender SC, S Budlender SC, S Kazee
and E Cohen instructed by Webber Wentzel
For the
Respondents:
P Hodes
SC, J de Waal SC and C Quinn instructed by Kudo Law
[1]
Fleming “Retraction and Reply: Alternative Remedies for
Defamation” (1978) 12
University
of British Columbia Law Review
15 at 15.
[2]
Compare,
for example the lament in the minority judgment in
Le
Roux v Dey
(Freedom
of Expression Institute and Restorative Justice Centre as Amici
Curiae)
[2011] ZACC 4
;
2011 (3) SA 274
(CC);
2011 (6) BCLR 577
(CC) at paras
197-8. The New South Wales Law Commission, in a report published in
1995, which was referred to by Willis J
in
Mineworkers
Investment Co (Pty) Ltd v Modibane
2002 (6) SA 512
(W) at para 26, remarked that “[a]
legal system which effectively promotes damages as the sole remedy
in defamation
is remedially crude”.
[3]
During
the hearing, and in the parties’ written submissions, various
terms were used to refer to what I refer to in this
judgment as a
“trading corporation”. One such term is “for-profit
company”. In this judgment, I will
predominantly use the term
“trading corporation”.
[4]
Although
there are three separate cases with different case numbers in the
High Court, only one judgment was delivered in respect
of all of
them; and there is only one application in this Court. The
applicants and respondents are therefore numbered differently
in
this Court and the High Court.
[5]
The
first set of exceptions concern the so-called “SLAPP”
(Strategic Litigation Against Public Participation) special
plea.
Those exceptions are the subject of a related case in this Court,
Mineral
Sands Resources (Pty) Ltd and Others v Reddell and Others
CCT 66/21.
[6]
Mineral
Sands Resources (Pty) Ltd v Reddell and Two Related Cases
2021
(4) SA 268 (WCC).
[7]
Media
24 Ltd v SA Taxi Securitisation (Pty) Ltd
[2011] ZASCA 117; 2011 (5) SA 329 (SCA).
[8]
An
e-book is a book publication made available in digital form. The
first e-book, is Clarke
The Promise
of Justice
(2013), and the second is Clarke
Survivor:
Wild Coast – Before and Beyond ‘The Shore Break’
(2015).
[9]
Clarke “Behind the Irony Curtain: Blood Diamond, Xolobeni and
the Real Story of MRC”
Medium
(25 March 2018), available at
https://johngiclarke.medium.com/behind-the-irony-curtain-blood-diamond-xolobeni-and-the-real-story-of-mrc-6a626c9c2913
.
[10]
Citing
Geary
& Son v Gove
1964
(1) SA 434
(A) at 441D, the applicants submit that the elements of a
claim for injurious falsehood are: the defendant has made a false
representation;
the defendant knew the representation to be false;
the plaintiff has lost or will lose customers as a result of the
false representation;
and that the defendant intended, by the false
representation, to cause the plaintiff that loss.
[11]
Section
10, headed “Human dignity”, provides that “
[e]veryone
has inherent dignity and the right to have their dignity respected
and protected”.
[12]
In
this regard, the applicants cite the dissenting judgments of Lord
Hoffmann and Baroness Hale in
Jameel
(Mohamed) v Wall Street Journal Europe Sprl
[2006]
UKHL 44
;
[2007] 1 AC 359
(
Jameel
).
[13]
Khumalo
v Holomisa
[2002]
ZACC 12; 2002 (5) SA 401 (CC); 2002 (8) BCLR 771 (CC).
[14]
This,
according to the respondents, is a difficult requirement as it is
quite cumbersome for the target of defamation to show
that the
perpetrator thereof (the defendant) is lying. Since it is the
defendant who published the statement, she is in the best
position
to show that what she published is true. They cite
Khumalo
id at para 38 where it was held:
“
In
not requiring a plaintiff to establish falsity, but in leaving the
allegation and proof of falsity to a defendant to a defamation
charge, the common law chooses to let the risk lie on defendants.
After all, it is by definition the defendant who published
the
statement and thereby caused the harm to the plaintiff.”
[15]
The respondents cite
SA
Taxi
above n 7 at para 40.2.
[16]
National
Media Ltd v Bogoshi
[1998]
ZASCA 84
;
1998 (4) SA 1196
(SCA).
[17]
They
rely on
Khumalo
above n 13
at
para 13
and
Le
Roux
above
n 2
at
para 138.
[18]
G
A Fichardt Ltd v The Friend Newspapers Ltd
1916
AD 1
at 5-6.
[19]
Dhlomo
N.O. v Natal Newspapers (Pty) Ltd
1989
(1) SA 945 (A).
[20]
SA Taxi
above n 7.
[21]
The
respondents submit that academic opinion is also supportive of the
majority judgment, citing Loubser and Midgley (eds)
The
Law of Delict in South Africa
(Oxford
University Press Southern Africa, Cape Town 2010) and Neethling et
al
Neethling
on Personality Rights
(LexisNexis
Butterworths, Durban 2019).
[22]
They
refer to
Steel
and Morris v United Kingdom
[2005]
ECHR 103
and
Jameel
above n 12.
[23]
The
respondents submit that the Supreme Court of Appeal majority in
SA
Taxi
above n 7, rejected the proposed development that:
“
[F]or-profit
companies should plead and prove patrimonial loss (special damages)
in defamation action or whether they should (as
a less drastic
alternative) be precluded from claiming general damages (and
restricted to other remedies, such as a claim for
an apology).”
They
then state that:
“
The
same development was also rejected by the majority of the (then)
House of Lords in
Jameel
(Mohamed) v Wall Street Journal Europe
Sprl
[2006] UKHL 44
;
[2007] 1 AC 359
(HL) which was
found not to violate the European Convention for the Protection of
Human Rights and Fundamental Freedoms in
Steel
and Morris v United Kingdom
(2005) 41
EHRR 403.”
[24]
Section
16 reads:
“
(1)
Everyone has the right to freedom of expression, which includes—
(a)
freedom of the press and other media;
(b)
freedom to receive or impart information or ideas;
(c)
freedom of artistic creativity; and
(d)
academic freedom and freedom of scientific research.
(2)
The right in subsection (1) does not extend to—
(a)
propaganda for war;
(b)
incitement of imminent violence; or
(c)
advocacy of hatred that is based on race, ethnicity, gender or
religion, and that
constitutes incitement to cause harm.”
[25]
Khumalo
above
n 13
at
para 33 and
Dikoko
v Mokhatla
[2006]
ZACC 10
;
2006 (6) SA 235
(CC);
2007 (1) BCLR 1
(CC) at para 90.
[26]
Khumalo
id
at para 16.
[27]
Zweni
v Minister of Law and Order
[1992] ZASCA 197
;
1993 (1) SA 523
(A) at 532I-533A.
[28]
Id
at 536A-C.
[29]
Minister
of Safety and Security v Hamilton
[2001] ZASCA 22
;
2001 (3) SA 50
(SCA) at 53E.
[30]
Khumalo
above
n 13.
[31]
Rule
19(2) provides:
“
A
litigant who is aggrieved by the decision of a court and
who wishes to appeal against it directly to the Court on
a constitutional matter shall, within 15 days of the order
against which the appeal is sought to be brought and after
giving
notice to the other party or parties concerned, lodge with the
Registrar an application for leave to appeal: Provided
that where
the President has refused leave to appeal the period prescribed in
this rule shall run from the date of the order
refusing leave.”
[32]
McKerron
The
Law of Delict
7 ed (Juta & Co Ltd, Cape Town 1971) at 213.
[33]
Id at 214.
[34]
See,
amongst others,
Le
Roux
above
n 2
at
para 138;
Khumalo
above
n 13
at
para 28; and
Dikoko
above
n 25
at
para 92.
[35]
Dikoko
id
at para 62.
[36]
Id;
Le
Roux
above n 2.
[37]
Khumalo
above
n 13
at
para 18. This position was confirmed in
Le
Roux
id
at para 84-5.
[38]
Khumalo
id
at para 19.
[39]
Id
at para 19. The Court unequivocally states that the defence is
available to media defendants.
[40]
Id
at
para 4.
[41]
Id at para 33.
[42]
Id at para 28.
[43]
Id at paras 42-3.
[44]
Le Roux
above n 2 at para 85.
[45]
See, for example,
Khumalo
above
n 13
at
para 27.
[46]
SA Taxi
above n 7 at para 30.
[47]
Id
at para 65, Nugent JA states that “
[w]e
agree that a trading corporation has a protectable interest in its
reputation, and we agree that it is entitled to redress
once the
elements of unlawful defamation have been established in the
ordinary way”.
[48]
There
are some who argue for a denial to a trading corporation of “any
right to reputation, and generally any non-patrimonial
(personality)
rights, since they are incapable of suffering any loss if these are
violated”. See Descheemaeker “Three
Keys to Defamation:
Media 24 in a Comparative Perspective”
(2013) 130
SALJ
435 at 437.
[49]
See, amongst others,
Universiteit
van Pretoria v Tommie Meyer Films (Edms) Bpk
1977 (4) SA 376
(T) at 384. This finding was confirmed, in part, by
the Appellate Division in
Universiteit
van Pretoria v Tommie Meyer Films (Edms) Bpk
1979
(1) SA 441
(A) at 453-4.
[50]
Church
of Scientology in SA (Incorporated Association not for gain) v
Reader’s Digest Association SA (Pty) Ltd
1980
(4) SA 313
(C) at 317 and
Ahmadiyya
Anjuman IshaatiIslamlahore (South Africa) v Muslim Judicial
Council (Cape)
1983
(4) SA 855
(C) at 865.
[51]
Fichardt
above
n 18;
Goodall
v Hoogendoorn Ltd
1926
AD 11
;
Gold
Reef City Theme Park (Pty) Ltd
;
Akani
Egoli (Pty) Ltd v Electronic Media Network Ltd
2011
(3) SA 208
(GSJ) at 220; and
SA
Taxi
above n 7
at
para 7. McKerron above n 32
at
182 states that:
“
A
trading corporation, being in law a person distinct from its members
and having therefore a reputation of its own to maintain,
can sue
for a defamatory statement which affects it in its trade, property
or reputation.”
[52]
Dhlomo
above
n 19.
[53]
Id
at 952, Rabie ACJ held that:
“
The
aforesaid statements of the law by Innes CJ and Solomon JA [in
Fichardt’s
case] were . . . strictly speaking not necessary for the
decision of that case. . . . It is clear at the same time,
however,
that those statements were made as reflecting settled law. Innes CJ,
as pointed out above, stated: ‘That
the remedy by way of
action for libel is open to a trading company admits of no doubt’,
and Solomon JA, as has also been
shown above, regarded it as settled
law that a trading corporation could sue for defamation. In the
Spoorbond
case
supra
decided
thirty years after
Fichardt’s
case, Watermeyer CJ, without
discussing the matter, accepted the law to be that a trading
corporation can sue for defamation.
I appreciate that it may be said
that the recognition of the right of a trading corporation to sue
for defamation involves an
extension of the principles of Roman and
Roman-Dutch law which dealt with the right of action only in
relation to natural persons,
but, having considered all this, and
having taken account of South African academic writings in textbooks
and legal journals
pro
and
contra
the
idea that a trading corporation should have the right to sue for
defamation, I have come to the conclusion that it would be
unrealistic not to hold that the law as stated by this Court in
Fichardt’s
case
more than seventy years ago has become the law of South Africa. I
accordingly so hold.”
[54]
Id
at 953. See further
Herbal
Zone (Pty) Ltd v Infitech Technologies (Pty) Ltd
[2017] ZASCA 8
;
[2017] 2 All SA 347
(SCA) at para 36.
[55]
Caxton
Ltd v Reeva Forman (Pty) Ltd
[1990]
ZASCA 47
;
1990
(3) SA 547
(A).
[56]
National
Coalition for Gay and Lesbian Equality v Minister of Justice
[1998]
ZACC 15; 1999 (1) SA 6 (CC); 1998 (12) BCLR 1517 (CC).
[57]
President
of the Republic of South Africa v Hugo
[1997]
ZACC 4
;
1997 (4) SA 1
(CC);
1997 (6) BCLR 708
(CC), which referred
to
Egan
v Canada
(1995) 29 CRR (2d) 79 at 106, wherein it was held: “This Court
has recognised that inherent human dignity is at the heart
of
individual rights in a free and democratic society”.
[58]
National
Coalition I
above
n 56
at
para 28. See also more recently,
Qwelane
v South African Human Rights Commission
[2021]
ZACC 22
;
2021 (6) SA 579
(CC);
2022 (2) BCLR 129
(CC) at para 66.
[59]
S
v Makwanyane
[1995]
ZACC 3
;
1995 (3) SA 391
(CC);
1995 (6) BCLR 665
(CC).
[60]
Id at paras 328-9. See also
Dawood
v Minister of Home Affairs; Shalabi and Another v Minister of Home
Affairs; Thomas v Minister of Home Affairs
[2000]
ZACC 8
;
2000 (3) SA 936
(CC);
2000 (8) BCLR 837
(CC) at para 35
:
“
The
value of dignity in our Constitutional framework cannot . . . be
doubted. The Constitution asserts dignity to contradict our
past in
which human dignity for black South Africans was routinely and
cruelly denied. It asserts it too to inform the future,
to invest in
our democracy respect for the intrinsic worth of all human beings.”
[61]
Freedom
of Religion South Africa v Minister of Justice and Constitutional
Development
[2019]
ZACC 34; 2020 (1) SA 1 (CC); 2019 (11) BCLR 1321 (CC).
[62]
Id at para 45.
[63]
Khumalo
above
n 13 at para 27.
[64]
Ferreira
v Levin N.O.; Vryenhoek v Powell N.O.
[1995]
ZACC 13
;
1996 (1) SA 984
(CC);
1996 (1) BCLR 1
at para 49.
[65]
Dawood
above
n 60
at
para 37.
[66]
Teddy
Bear Clinic for Abused Children v Minister of Justice and
Constitutional Development
[2013]
ZACC 35
;
2014 (2) SA 168
(CC); 2013(12) BCLR 1429 (CC) at para 52.
[67]
Id
at para 55.
[68]
Dikoko
above
n 25 at para 68.
[69]
Mtolo
v Lombard
[2021]
ZACC 39
;
2022 (9) BCLR 1148
(CC) at para 42. See also
Daniels
v Scribante
[2017]
ZACC 13
;
2017 (4) SA 341
(CC);
2017 (8) BCLR 949
(CC) at para 31.
[70]
Soobramoney
v Minister of Health (KwaZulu-Natal)
[1997]
ZACC 17
;
1998 (1) SA 765
(CC);
1997 (12) BCLR 1696
at para 16.
[71]
Id.
[72]
Ex
Parte Chairperson of the Constitutional Assembly: In Re
Certification of the Constitution of the Republic of South Africa,
1996
[1996] ZACC 26
;
1996 (4) SA 744
(CC);
1996 (10) BCLR 1253
(CC) at
para 57.
[73]
As long ago as 1899, de Villiers, in
The
Roman and Roman-Dutch Law of Injuries
(Nabu
Press, 2012)
,
recognised
at 24-5 that—
“
[b]y
a person’s reputation is here meant that character for moral
or social worth to which he is entitled amongst his fellow-men;
by
dignity that valued and serene condition in his social or individual
life which is violated when he is, either publicly or
privately,
subjected by another to offensive and degrading treatment, or when
he is exposed to ill-will, ridicule, disesteem
or contempt. . . . It
must be clearly understood . . . that in an action of injury such as
we have to do with in the present
title, compensation is not sought
for patrimonial or material loss, that is to say, loss to or in
respect of property, business
or prospective gains caused to one
person through the act of another. The interests that are impaired
by an injury are purely
ethical; and the reparation claimed in the
action is on account of that pain of mind which is naturally felt by
anyone who has
been the object of vexatious personal aggression on
the part of another, or who has been humiliated by becoming the
object of
that feeling of repulsion which is naturally entertained
by others towards a person who bears an evil reputation or is
otherwise
obnoxious, or of that disrespect which is evidenced by
exposing another to contempt, ridicule, dislike, disfavour or
disesteem.”
Nothing
has changed with regard to this lucid exposition of the nature of a
person’s right to a good name and reputation.
[74]
Investigating
Director: Serious Economic Offences v Hyundai Motor Distributors
(Pty) Ltd: In re Hyundai Motor Distributors (Pty)
Ltd v Smit N.O.
[2000]
ZACC 12
;
2001 (1) SA 545
(CC);
2000 (10) BCLR 1079
(CC)
.
[75]
Id at para 17-8.
[76]
Certification
Judgment
above n 72 at para 57.
[77]
Bernstein
v Bester N.N.O.
[1996]
ZACC 2
;
1996 (2) SA 751
(CC);
1996 (4) BCLR 449
(CC).
[78]
Hyundai
above
n 74
at
para 18 (emphasis added).
[79]
Tulip
Diamonds FZE v Minister of Justice and Constitutional Development
[2013]
ZACC 19
;
2013 (2) SACR 443
(CC);
2013 (10) BCLR 1180
(CC) at para
35.
[80]
Compare
to
Dawood
above
n 60
at
para 35.
[81]
Gcaba v
Minister for Safety and Security
[2009]
ZACC 26
;
2010 (1) SA 238
(CC);
2010 (1) BCLR 35
(CC) at para 62.
[82]
Second judgment at [159].
[83]
SA
Taxi
above
n 7
at
para 7.
[84]
See
Visser “Genoegdoening in die deliktereg” (1988) 51
Tydskrif
vir Hedendaagse Romeins-Hollandse Reg
468 at 486.
[85]
Die
Spoorbond v South African Railways; Van Heerden v South African
Railways
1946
AD 999
.
There, equally firm views were expressed by Watermeyer CJ and
Schreiner JA in favour of general damages being available to trading
corporations in defamation claims, but again, these were made as
obiter
.
Interestingly, in
Spoorbond
at 1011,
Schreiner
JA acknowledged that a corporation has “no feelings to outrage
or offend”.
[86]
Dhlomo
above n 19.
[87]
SA
Taxi
above
n 7
at
para 30.
[88]
Id
at para 43. Reference was made to
Neethling
“n Vergelyking Tussen die Individuele en Korporatiewe
Persoonlikheidsreg op Identiteit” (2011)
Tydskrif
vir die SuidAfrikaanse Reg
62. The title of the article, loosely translated, is “A
comparison between the individual and corporate personality right
to
identity”.
[89]
Khumalo
above n 13 at para 27.
[90]
Le Roux
above
n 2 at para 138.
[91]
SA
Taxi
above
n 7
at
para 44.
[92]
Financial
Mail (Pty) Ltd v Sage Holdings Ltd
[1993]
ZASCA 3; 1993 (2) SA 451 (A).
[93]
SA
Taxi
above
n 7
at
para 45. The passage from
Financial
Mail
reads:
“
This
Court has held that a trading corporation can sue for damages in
respect of a defamation which injures its good name and
business
reputation; and that it may recover such damages without having to
prove actual loss . . . . In addition, a corporation
so defamed may
also claim damages to compensate it or any actual loss sustained by
it by reason of the defamation . . . . These
developments in the law
of defamation
are not directly
pertinent to the issues in the present case
,
but I refer to them to indicate that as a matter of general policy,
the Courts have, in the sphere of personality rights, tended
to
equate the respective positions of natural and artificial (or legal)
persons where it is possible and appropriate for this
to be done. In
the sphere of defamation this can be done.” (Emphasis added.)
[94]
Hyundai
above
n 74. The
dictum
of
Langa DP at paras 17 and 18 was cited.
[95]
SA
Taxi
above
n 7
at
para
47.
[96]
Id
at paras 48 and 49.
[97]
Steel
and Morris
above
n 22.
[98]
Jameel
above
n 12
.
[99]
SA
Taxi
above
n 7
at
para 43 (emphasis added).
[100]
SA
Taxi
above
n 7
at
para 44.
[101]
Le Roux
above n 2 at para 138.
This
Court drew a distinction between wide and narrow dignity:
“
In
terms of our Constitution, the concept of dignity has a wide meaning
which covers a number of different values. So, for example,
it
protects both the individual’s right to reputation and his or
her right to a sense of self-worth. But under our common
law
‘dignity’ has a narrower meaning. It is confined to the
person’s feeling of self-worth. While reputation
concerns
itself with the respect of others enjoyed by an individual, dignity
relates to the individual’s self respect.
In the present
context the term is used in the common law sense. It is therefore
used to the exclusion and in fact, in contradistinction
to
reputation, which is protected by the law of defamation.”
[102]
En
passant
,
it is noted that members of this Court held divergent views on the
merits of the two claims.
[103]
Hyundai
above n 74 at para 18.
[104]
SA
Taxi
above
n 7
para
48.
[105]
SA
Taxi
above
n 7
at
paras 79-80.
[106]
Id
at para 65.
[107]
Fose
v Minister of Safety and Security
[1997]
ZACC 6
;
1997 (3) SA 786
(CC);
1997 (7) BCLR 851
(CC) at para 80.
[108]
Caxton
above
n 55.
[109]
Neethling, Potgieter and Visser
Law
of Delict
6 ed (LexisNexis, Durban 2010) at 250-1.
[110]
SA
Taxi
above
n 7
at
para 88.
[111]
Neethling
“
Personality
Rights: A Comparative Overview” (2005) 38
The
Comparative and International Journal of Southern Africa
210 at 244-5.
[112]
47.10.1.2
(Ulpian, Edict at 56):
“
Every
contumely is inflicted on the person or relates to one’s
dignity or involves disgrace: it is to the person when someone
is
struck; it pertains to dignity when a lady’s companion is led
astray; and to disgrace when an attempt is made on a person’s
chastity.” (Watson’s translation)
[113]
Descheemaeker
above n 48
at
438.
[114]
Neethling and Potgieter “Defamation of a Corporation: Aquilian
Action for Patrimonial (Special) Damages and
Actio
Injuriarum
for Non-Patrimonial (General) Damages” (2012) 75
Tydskrif
vir Hedendaagse Romeins-Hollandse Reg
304 at 310-1.
[115]
Le Roux
above n 2 at para 195.
[116]
Second judgment at [187].
[117]
Dikoko
above
n 25 at para 92;
The
Citizen 1978 (Pty) Ltd v McBride
[2011]
ZACC 11
;
2011 (4) SA 191
(CC);
2011 (8) BCLR 816
(CC) at para 132.
[118]
Section
36 of the Constitution reads:
“
(1)
The rights in the Bill of Rights may be limited only in terms of law
of general application
to the extent that the limitation is
reasonable and justifiable in an open and democratic society based
on human dignity, equality
and freedom, taking into account all
relevant factors, including—
(a)
the nature of the right;
(b)
the importance of the purpose of the limitation;
(c)
the nature and extent of the limitation;
(d)
the relation between the limitation and its purpose; and
(e)
less restrictive means to achieve the purpose.
(2)
Except as provided in subsection (1) or in any other provision of
the Constitution,
no law may limit any right entrenched in the Bill
of Rights.”
[119]
Summarised
in Currie and De Waal
The
Bill of Rights Handbook
6 ed (Juta & Co Ltd, Cape Town 2013) at 339.
[120]
Dworkin
Freedom’s
Law
(Harvard University Press, Cambridge 1996) at 200.
[121]
Id.
[122]
Economic
Freedom Fighters v Minister of Justice and Correctional Services
[2020] ZACC 25
;
2021 (2) SA 1
(CC);
2021 (2) BCLR 118
(CC) at para
95.
[123]
Qwelane
above
n 58
at
para 67.
[124]
Democratic
Alliance v African National Congress
[2015] ZACC 1
;
2015 (2) SA 232
(CC);
2015 (3) BCLR 298
(CC) at paras
122-3.
[125]
De
Reuck v Director of Public Prosecutions, Witwatersrand Local
Division
[2003] ZACC 19
;
2004 (1) SA 406
(CC);
2003 (12) BCLR 1333
(CC) at
para 59.
[126]
Currie
and De Waal above n 119
at
341.
[127]
Thint
Holdings (Southern Africa) (Pty) Ltd v National Director of Public
Prosecutions
[2008] ZACC 14
;
2009 (1) SA 141
(CC);
2009 (3) BCLR 309
(CC) at para
52.
[128]
Dikoko
above
n 25 at para 92.
[129]
Id
at
paras 92 and 95.
[130]
Compare
The
Citizen 1978 (Pty) Ltd v McBride
above
n 117 at para 141;
Khumalo
above
n 13 at para 141; and
Qwelane
above n 58 at para 67.
[131]
Democratic
Alliance
above
n 124.
[132]
See the second judgment at [175] and [177].
[133]
Makwanyane
above
n 59.
[134]
Such
a pronouncement cannot be found in the main and in the concurring
judgments. Instead, Ackermann J at para 170, in his
concurring
judgment, states that he “appreciate[s] the concern of not
wishing to anticipate the issue as to whether life
imprisonment,
however executed and administered, is constitutional or not”.
[135]
I say “prima facie” because it does not appear that
there was a robust enquiry into whether and how life imprisonment
is
capable of achieving the purposes pursued via the death penalty.
[136]
Makwanyane
above n 59 at para 146. And at para 133 this Court stated:
“
It
has been argued before this Court that one of the purposes of such
punishment is to protect the life and hence the dignity
of innocent
members of the public, and if it in fact does so, the punishment
will not negate the constitutional norm. On this
analysis it would,
however, have to be shown that the punishment serves its intended
purpose. This would involve a consideration
of the deterrent and
preventative effects of the punishment and whether they add anything
to the alternative of life imprisonment.
If they do not, they cannot
be said to serve a life protecting purpose.”
[137]
Second judgment at [181].
[138]
Dikoko
above
n 25.
[139]
Id at para 144.
[140]
Makwanyane
above n 59 at para 127.
[141]
Id.
[142]
Second judgment at [194].
[143]
Handyside
v the United Kingdom
[1976] ECHR 5.
[144]
Islamic
Unity Convention v Independent Broadcasting Authority and Others
[2002] ZACC 3
;
2002 (4) SA 294
(CC);
2002 (5) BCLR 433
(CC) at para
26.
[145]
De
Reuck
above
n 125 at para 49. See also
Qwelane
above n 58 at para 73.
[146]
Id at paras 31 and 34.
[147]
Second judgment at [205].
[148]
Second judgement at [175] and [177].
[149]
See
SA
Taxi
above
n 7 at paras 67-70, where
mention
is made of England’s
Defamation
Act 1996, Ireland’s Defamation Act 2009,
New
South Wales’ Defamation Act 2005 and New Zealand’s
Defamation Act 1992.
[150]
South
Hetton Coal Company Limited v North-Eastern News Association
Limited
[1894]
1 QB 133.
[151]
Id
at 138.
[152]
Id
Lord Esher MR held:
“
[I]n
every action of libel, whether the statement complained of is, or is
not, a libel, depends on the same question – viz.,
whether the
jury are of opinion that what has been published with regard to the
plaintiff would tend in the minds of people of
ordinary sense to
bring the plaintiff into contempt, hatred, or ridicule, or to injure
his character. The question is really
the same by whomsoever the
action is brought – whether by a person, a firm, or a
company.”
[153]
Id
at 148.
[154]
Lewis v
Daily Telegraph Ltd
[1964] AC 234
at 262 where the Court held that “[i]ts
reputation can be injured by libel, but that injury must sound in
money. The injury
need
not
necessarily be confined to loss on income. Its goodwill may be
injured”.
[155]
Derbyshire
County Council v Times Newspapers Ltd
[1993]
AC 534.
[156]
National
Union of General and Municipal Workers v Gillian
[1946]
KB 81.
[157]
South
Hetton
above
n 150
at
547.
[158]
Shevill
v Presse Alliance SA
[1995] EUECJ C-68/93
at
para 94.
[159]
Article
10 reads:
“
1.
Everyone has the right to freedom of expression. This right shall
include freedom
to hold opinions and to receive and impart
information and ideas without interference by public authority and
regardless of frontiers.
2.
The exercise of these freedoms, since it carries with it duties and
responsibilities,
may be subject to such formalities, conditions,
restrictions or penalties as are prescribed by law and are necessary
in a democratic
society, in the interests of national security,
territorial integrity or public safety, for the prevention of
disorder or crime,
for the protection of health or morals, for the
protection of the reputation or rights of others, for preventing the
disclosure
of information received in confidence, or for maintaining
the authority and impartiality of the judiciary.”
[160]
Steel
and Morris
above
n 22
at
para 94 (emphasis added).
[161]
Id
at para 94.
[162]
Id
at para 87.
[163]
Id
at para 96.
[164]
Jameel
above
n 12 at 369.
[165]
Id
at para 20.
[166]
Id
at para 21.
[167]
Id
at para 25.
[168]
Id
at para 26.
[169]
Id
at para 95
[170]
Id
at para 95.
[171]
Id
at para 125.
[172]
Id
at para 152.
[173]
Id
at paras 152-3.
[174]
Id
at para 154.
[175]
Id
at para 91.
[176]
Id
at para 157.
[177]
Hyundai
above
n 74
at
para 18.
[178]
Tulip
Diamonds
above
n 79.
[179]
SA Taxi
above n 7 at para 38.
[180]
Id at para 78.
[181]
Fose
above
n 107
at
para 70.
[182]
SA Taxi
above n 7 at para 43.
[183]
Id at para 105.
[184]
Id
at
para 92.
[185]
See
[101]
of
the first judgment
.
[186]
Id at [132].
[187]
Id at [102] and [106].
[188]
Id at [104].
[189]
Id at [105].
[190]
Id at [107].
[191]
Id at [110].
[192]
See
[101]
of
the first judgment
.
[193]
Id at
[101]
and [106].
[194]
Id at
[107].
[195]
Id at
[116].
[196]
Id at
[101]
and [117].
[197]
See
[118] – [119]
of
the first judgment
.
[198]
See
[126]
of
the first judgment
.
[199]
See [99] of the first judgment.
[200]
See
[98]
of
the first judgment
.
[201]
Khumalo
above
n 13
at
para 42.
[202]
See [
128]
of
the first judgment
.
[203]
Id at
[130].
[204]
Id at [49].
[205]
See [115] of the first judgment.
[206]
Khumalo
above
n 13
at
para 42.
[207]
Id.
[208]
Bogoshi
above
n 16
at
1212F-G.
sino noindex
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