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England and Wales High Court (Queen's Bench Division) Decisions |
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You are here: BAILII >> Databases >> England and Wales High Court (Queen's Bench Division) Decisions >> Waterson v Lloyd & Anor [2011] EWHC 3197 (QB) (08 December 2011) URL: http://www.bailii.org/ew/cases/EWHC/QB/2011/3197.html Cite as: [2011] EWHC 3197 (QB) |
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QUEEN'S BENCH DIVISION
Strand, London, WC2A 2LL |
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B e f o r e :
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Nigel Waterson |
Claimant |
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- and - |
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(1) Stephen Lloyd MP (2) Rebecca Carr |
Defendant |
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Richard Rampton QC & Ian Helme (instructed by Goodman Derrick LLP) for the Defendant
Hearing dates: 22 November 2011
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Crown Copyright ©
Mr Justice Tugendhat :
THE MODE OF TRIAL AND THE APPLICATIONS
THE FIRST PUBLICATION COMPLAINED OF
"The Borough of Bromley is where Mr Waterson and his family live, more than sixty miles from his constituents.
Taxpayers have paid almost £70,000 during the last four years towards the cost of Mr Waterson's Kent family home. The MP also claimed for food, cleaning, utility bills and over £1000 to have his garage re-decorated at the taxpayers' expense.
Mr Waterson has also claimed for the cost of glossy brochures, featuring the photo – opportunities for his visits to Eastbourne".
The words complained of reads:
"Local residents have delivered their verdict on the MPs' expenses scandal.
Eastbourne Conservative MP Nigel Waterson has come under fire in recent months for his own scandalous expenses claim.
Mr Waterson claimed almost £70,000 for the mortgage on his large family home in Kent, which is over 60 miles away from his constituents.
He also claimed over £1000 to have his garage re-decorated.
It is clear that Mr Waterson's expenses claim has upset many people in Eastbourne".
[1] "The electorate is fed up with the entire House of Commons, our MP included… It is time for Eastbourne to vote for a new Member of Parliament".
[2] "Why does Mr Waterson need a large house in Beckenham?"
[3] "I for one would prefer my local MP to live in Eastbourne full-time and offer us taxpayers value for money. Eastbourne deserves more than second best and perhaps it's time we got it".
[4] "Why are you allowed to claim £70,000 of taxpayers' money for the mortgage on your home in Beckenham, Kent… why are you allowed to claim taxpayers' money to fund your 'Sea Vews' magazine"? …you do not seem to enjoy mixing with the ordinary voter".
"7. In their natural and ordinary meaning the words complained of in paragraph 6 above meant and were understood to mean that the Claimant's conduct in making the various expenses claims listed had given rise to legitimate outrage, and that the cause of such scandal was his grave abuse for his own financial advantage of the Parliamentary rules governing such claims.
8. Further, or in the alternative, the words complained of in paragraph 6 above meant and were understood to mean that the Claimant was one of a number of notorious Members of Parliament, whose conduct had rightly become a subject of recent scandal, because their claims were unlawful and/or in breach of the Parliamentary rules, or such that they were liable to repay the amounts they had received.
Particulars of Innuendo
8(1) In or about July 2009 the Daily Telegraph published over a number of days details of expenses claims made by individual Members of Parliament between 2004 and 2009. The details published became an unprecedentedly notorious matter of national scandal, and it emerged that a very large number of Members of Parliament had made unlawful claims or claims for payment to which they were not entitled under the Parliamentary rules or claims which though within the rules were essentially were improper.
8(2) As the scandal increased, on 19 May 2009 the Prime Minister asked Sir Thomas Legg to investigate MPs' claims, and on 19 June 2009 Scotland Yard announced that a number of MPs would face criminal charges of false accounting.
8(3) Following the articles in the Daily Telegraph a large number of MPs of all parties repaid monies to which they had not been entitled, either voluntarily or as a result of rulings by Sir Thomas Legg.
8(4) The above facts and matters were known to a very large but unquantifiable proportion of the readers of the words complained of ".
THE SECOND PUBLICATION COMPLAINED OF
On page 2:
Under the heading "Courier Comment: It's Time for Change"
"We've seen the scandal of MPs abusing their expenses"
Under the headline "Eastbourne Needs a New MP"
"Local Residents were angry to discover that Nigel Waterson claimed £70,000 in just four years for his large Kent family home, sixty miles from his constituents…"
Under the headline "NIGEL WATERSON'S ROLL OF SHAME"
"In just four years claimed £70,000 for his family home sixty miles away in Kent".
On page 4:
Under the headline "IT'S A TWO HORSE RACE"
"Voting Labour here in Eastbourne and Willingdon will just let our expenses scandal MP off the hook".
"10(1) The Claimant's conduct in making an expenses claim in relation to his home in Kent was a shameful abuse of the Parliamentary rules for his own advantage, and had given cause for legitimate public indignation and anger, and
10 (2) He would escape his just deserts for such scandalous conduct in relation to his expenses, unless the electorate voted for the First Defendant".
THE DEFENCES
"10. The words complained of constituted honest comment on a matter of public interest, namely, the generosity of the Parliamentary expenses system as it was at the time of publication, the use that the claimant had made of that system while he was MP for Eastbourne and the anger and resentment that those matters were apt to cause, and had caused, amongst voters and taxpayers.
Particulars of Comment
10.1 The comment expressed by the words complained of in their natural and ordinary meaning and in their proper context was that Claimant's conduct in exploiting the expenses system to help purchase and maintain a large house in Kent, sixty miles from his constituency, at considerable expense to the taxpayer, and in maintaining his family home there in preference to Eastbourne, was scandalous and such as to cause legitimate anger, resentment and criticism, with the result that it would be no more than the Claimant deserved if he lost his seat in the forthcoming General Election for those reasons (amongst others)".
MR WATERSON'S REPLY
"Against this background whilst most ACA payments appeared to have been valid, a considerable number of them (a) could not initially be judged valid or invalid, in the absence of the necessary supporting evidence; or (b) were invalid because they breached specific Green Book rules; or (c) were invalid because they breached the essential requirement of propriety …" (emphasis added).
"Mr Waterson has no issues".
"7.6.(F) The Claimant's expenses claims were typical and unexceptional for an MP at the time, whether a Liberal Democrat MP, Conservative or otherwise in 2008/09. The Claimant's aggregate expenses claims of £158,162 placed him 222nd of 647 MP's, and 357th out of 647 in relation to claims under the ACA. In 2007/08 the Claimant's aggregate claims were the 183rd highest at 645 MPs and in 2006/07, 371st highest of 645 MPs (source: The Guardian/mysociety.org)…"
"12.1 In 2001, under the First Defendant's predecessor as candidate, Eastbourne Liberal Democrats had undertaken in their promotional literature a similar election smear campaign to that of 2010, namely that the Claimant was from somewhere else and lived somewhere else – in that instance that he was from London. In 2001 the Claimant had the same property designations as in 2010 with his main home the Eastbourne house and his second home the Beckenham house.
12.2 In 2001 the Eastbourne Liberal Democrats were censured by correspondents to the Eastbourne Herald for the factually incorrect statement that the Claimant did not live locally in Eastbourne and were forced to withdraw the statement (s) and admit the Claimant did live in the constituency.
12.3 In view of the foregoing, in 2009/2010, the Defendants and each of them knew or reasonably ought to have known that the Beckenham house was in the London Borough of Bromley and that it was misleading and disingenuous to claim, as they repeatedly did, that the Claimant lived in Kent. The Claimant had made no attempt to hide the fact that he maintained a second home in London in order to attend Parliament".
"6. I confirm that at the time of the publications I knew, or knew in general terms, the following facts:
(1) The relevant rules governing expense claims – a copy of which is exhibited to the Claimant's Reply (Defence paragraph 10.17 and Reply paragraph 7.1);
(2) The purchase by the Claimant and his wife, Dr Barbara Judge, of the property in Eastbourne known as Thatched Cottage in February 2000 ("the Eastbourne Property") (Defence paragraph 10.22 and Reply paragraph 7.2.1);
(3) The purchase by the Claimant and his wife of a large detached four bedroom property in Beckenham ("the Beckenham Property") in August 2003 (Defence paragraph 10.23 and Reply paragraph 7.2.2);
(4) That the Beckenham Property is some 57 miles from the constituency (Reply paragraph 7.2.3);
(5) The Claimant's wife and two children spend the working week at the Beckenham Property (Reply paragraphs 7.2.4 (B) and (G);
(6) That the Claimant's wife worked in London (Defence paragraph 10.25.1 and Reply 7.2.4 (A);
(7) The Claimant's two children attended school in Bromley (which is near to Beckenham) (Defence paragraph 10.25.2 and Reply paragraph 7.2.4 (B);
(8) The Claimant and his wife were registered on the 2009 electoral role in Beckenham, as well as Eastbourne (Defence paragraph 10.25.3 and Reply 7.2.4 (C);
(9) The Claimant normally spent Sunday, Monday and Tuesday/Wednesday nights at the Beckenham Property (Reply paragraph 7.2.4 (E));
(10) That, for the purposes of the Additional Costs Allowance ("ACA"), the Claimant designated the Eastbourne Property as his "main home" and the Beckenham Property as his "second home";
(11) The Claimant's expenses under ACA for the period 1 April 2004 to 31 March 2008 totalled £93,428 (or £23,357 annually);
(12) This included (Defence 10.28.6 and Reply 7.3 and 7.3.2):
(a) £65,532 in respect of mortgage interest for the Beckenham Property (as the Claimant's designated second home);
(b) £7,909 in respect of Council Tax for the Beckenham property;
(c) £2,200 utility bills for the Beckenham property;
(d) £4,200 food bills for the Beckenham property;
(e) £3,300 cleaning bills for the Beckenham property; and
(f) £4,475 service and maintenance bills for the Beckenham property (of which £1,000 are attributable to the exterior of the Beckenham Property and the doors of the garage to that property.
7. I further confirm that I did honestly believe at the time of the publications, and still believe today that the opinions stated in those publications were entirely correct, and that it was a scandal that Mr Waterson had a second family home in Kent upon which he claimed very significant amounts from the taxpayer to cover mortgage interest repayments and other expenses".
SUBMISSIONS
"A statement should be taken to be defamatory if it would tend to lower the plaintiff in the estimation of right-thinking members of society generally or would be likely to affect a person adversely in the estimation of reasonable people generally."
"The legal principles relevant to meaning … may be summarised in this way: (1) The governing principle is reasonableness. (2) The hypothetical reasonable reader is not naïve but he is not unduly suspicious. He can read between the lines. He can read in an implication more readily than a lawyer and may indulge in a certain amount of loose thinking but he must be treated as being a man who is not avid for scandal and someone who does not, and should not, select one bad meaning where other non-defamatory meanings are available. (3) Over-elaborate analysis is best avoided. (4) The intention of the publisher is irrelevant. (5) The article must be read as a whole, and any "bane and antidote" taken together. (6) The hypothetical reader is taken to be representative of those who would read the publication in question. (7) In delimiting the range of permissible defamatory meanings, the court should rule out any meaning which, "can only emerge as the produce of some strained, or forced, or utterly unreasonable interpretation…" …. (8) It follows that "it is not enough to say that by some person or another the words might be understood in a defamatory sense."
"In the light of all that has taken place over the past 12 months, it is in my judgment unreal to suggest that readers would not think the worst of a Member of Parliament who had taken advantage of (or "milked") the expenses system simply because he or she had stayed within the letter of the law or the rules".
"16. … First, the comment must be on a matter of public interest. ...
17. Second, the comment must be recognisable as comment, as distinct from an imputation of fact. If the imputation is one of fact, a ground of defence must be sought elsewhere, for example, justification or privilege. Much learning has grown up around the distinction between fact and comment. For present purposes it is sufficient to note that a statement may be one or the other, depending on the context. Ferguson J gave a simple example in the New South Wales case of Myerson v. Smith's Weekly (1923) 24 SR (NSW) 20, 26:
'To say that a man's conduct was dishonourable is not comment, it is a statement of fact. To say that he did certain specific things and that his conduct was dishonourable is a statement of fact coupled with a comment.'
18. Third, the comment must be based on facts which are true or protected by privileged…. If the facts on which the comment purports to be founded are not proved to be true or published on a privilege occasion, the defence of fair comment is not available.
19. Fourth, the comment must explicitly or implicitly indicate, at least in general terms, the facts on which it is based.
20. Finally, the comment must be one which could have been made by an honest person, however prejudiced he might be, and however exaggerated or obstinate his views: …. It must be germane to the subject-matter criticised. Dislike of an artist's style would not justify an attack upon his morals or manners. But a critic need not be mealy-mouthed in denouncing what he disagrees with. He is entitled to dip his pen in gall for the purposes of legitimate criticism: ….
21. These are the outer limits of the defence. The burden of establishing that a comment falls within these limits, and hence within the scope of the defence, lies upon the defendant who wishes to rely upon the defence."
i) "…the objective test for fair comment is concerned with whether the defendant is able to show that a hypothetical person could honestly express the relevant comment on the facts pleaded and/or proved by the defendant… If the claimant, by way of rebuttal, proves truly exculpatory circumstances which negate the suspicious circumstances raised by the defendant, that will undermine the accuracy of the factual substratum for the comment. The defendant would therefore fail…": Branson v Bower (No 2) [2002] QB 737 para [38]-[39]ii) "It is not comment … grossly to misrepresent the conduct of a public man, and then to hold him up to execration for his alleged wrongdoing": Christie v Robertson (1889) 10 NSWLR 157, 163 cited in Gatley on Libel and Slander 11th ed para 12.14.
"The main argument in favour of protecting freedom of expression, even in cases of inaccurate defamatory statements, is the encouragement of uninhibited debate on public issues. But the opposite argument is equally strong: the suppression of untrue defamatory statements, apart from protecting the dignity of individuals, discourages false speech and improves the overall quality of public debate through a chilling effect on irresponsible journalism. Moreover, such debates may be suppressed if the potential participants know that they will have no remedy in the event that false defamatory accusations are made against them. The prohibition of defamatory speech also eliminates misinformation in the mass media and effectively protects the right of the public to truthful information. Furthermore, false accusations concerning public officials, including candidates for public office, may drive capable persons away from government service, thus frustrating rather than furthering the political process".
DECISIONS ON MEANING
CONCLUSION