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High Court of Ireland Decisions |
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You are here: BAILII >> Databases >> High Court of Ireland Decisions >> Reynolds v. Malocco [1998] IEHC 175; [1999] 2 IR 203; [1999] 1 ILRM 289 (11th December, 1998) URL: http://www.bailii.org/ie/cases/IEHC/1998/175.html Cite as: [1998] IEHC 175, [1999] 2 IR 203, [1999] 1 ILRM 289 |
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1. The
Plaintiff seeks an interlocutory injunction restraining the Defendants and each
of them from in any manner or fashion howsoever publishing, disseminating or
circulating an article intituled "Operation Night-cap causes John Reynolds
sleepless nights as cops raid Club". the article in question is contained in
the first issue of a new magazine called "Patrick".
2. The
Plaintiff is a company director who is involved in the running of two
nightclubs one called "Pod" and the other "Red Box", both of which carry on
business in Dublin.
3. The
first Defendant describes himself in his Affidavit as a journalist and is
described in the body of the magazine as its editor. The second Defendant has
no existence but is the first of two purported authors of the article in
question. At the hearing it emerged that the name Declan Murray is a pseudonym
for the first named Defendant Elio Malocco.
4. The
third named Defendant has no existence either even though he purports to be the
second author of the article in question. The name Frank White is a pseudonym
for a gentleman called Luciano Magliocco who is a relation of Elio Malocco.
5. Little
information is available as to the fourth named Defendant. He is described in
the magazine under the heading "publisher's letter" as the publisher with an
address given simply as "London". He is also described in the body of the
magazine as "the boss". His address in the Plenary Summons is give as Foxrock
Post Office Dublin. Notwithstanding his assertion in the body of the magazine
to be its publisher, it emerged in the course of the hearing that a company
called Fanville Limited holds itself out to be such publisher and indeed the
owner of the magazine.
6. Fanville
Limited is a limited liability company which was formed on the 20th January,
1998. It has two directors, one of whom is Margaret Magliocco and the other is
Colette Kerr. It has a paid up capital of £2. Both issued shares are
owned by a limited company. Miss Kerr appeared before me and indicated that
she was the Secretary of Fanville Limited. She also swore an Affidavit on
behalf of that company. However, in light of the decision of the Supreme Court
in
Battle
v. Irish Art Promotion Centre Limited
(1968 IR 252) I was obliged to rule that she could not appear on behalf of the
limited liability company. She accepted my ruling and took no further part in
the proceedings.
7. Mr
Elio Malocco appeared personally as did Luciano Magliocco under the pseudonym
Frank White. Mr Laur was not represented.
8. The
article to which exception is taken by the Plaintiff commences at page 31 of
the magazine and concludes at page 33. Apart from the heading which I have
already reproduced in the first paragraph of this judgment, the other parts of
the article in respect of which complaint is made read as follows:-
9. On
the first page of the article there is a photograph of the Plaintiff in the
company of a woman whose face has been excised from the picture. It bears the
legend "Reynolds continues to run the POD". On the third page of the article
there is a photograph of the Plaintiff's Porsche motor car. This picture bears
the legend "Reynolds enjoys the high life".
10. The
Plaintiff complains that the above extracts defame him in two respects. He
says that the words in the natural and ordinary meaning or by innuendo allege
(a) that he has been charged with permitting the sale of drugs in his
nightclubs and/or that he permits the sale of drugs on the premises and is
benefiting therefrom. Alternatively, he is turning a blind eye to the sale of
drugs on his premises and (b) that he is a homosexual.
11. Mr
Malocco contends that insofar as the first of these complaints is concerned the
words do not bear the meanings ascribed to them. If they do, he says that he
will plead justification at the trial of the action. Insofar as the second
complaint is concerned he says that the words do not bear the meaning contended
for. He has stated in open Court that the Plaintiff is not a homosexual nor
did he ever intend to allege such.
12. The
Plaintiff says that the libel is so serious that it is a case in which the
Court ought to intervene by the grant of an injunction. Without such
injunction it is said the Plaintiff will suffer loss which is incapable of
being compensated in damages.
13. The
Defendants say there should be no injunction because there is no libel and even
if there is one concerning the drugs their intended plea of justification is
fatal to the Plaintiff's case.
14. I
will shortly have to consider these contentions but before doing so it is
necessary to deal with the principles applicable to the grant of interlocutory
injunctions in cases of this type.
15. The
judicature (Ireland) Act 1877 confers jurisdiction on the High Court to grant
injunctions in all cases where it appears just and convenient to do so, and on
such terms as the Court sees fit. Order 50 Rule 6 of the Rules of the Superior
Courts authorises the grant of interlocutory injunctions.
16. The
exercise of this power by the Court has been the subject of numerous Court
decisions and it is possible to divine from these the relevant principles which
the Court applies in deciding to grant or withhold interlocutory injunctive
relief.
17. In
an ordinary case the Court considers whether the Plaintiff has raised a fair or
serious issue to be determined at the trial of the action. If it considers
that such a question has been raised it goes on to decide whether damages would
adequately compensate the Plaintiff in respect of any loss or damage which may
be suffered as a result of the activity which is sought to be enjoined. If it
decides that damages would not be an adequate remedy it then proceeds to
consider whether on the balance of convenience an injunction should be granted
or not. (See the decision of the Supreme Court in
Campus
Oil v. Minister for Industry and Commerce
(No 2) [1990] I.R. 88 and the decision of the House of Lords in
American
Cyanamid Co v. Ethicon Limited
(1975 AC 396).
18. These
principles have a wide but not a universal application. In a small number of
cases special rules which are not encompassed by these principles apply. One
such type of case arises in the field of contracts of employment. Normally
Courts will not grant an injunction to restrain breaches of covenant in a
contract of employment if that would amount to indirect specific performance of
such a contract or would perpetuate a relationship based on mutual trust which
no longer exists. Another exception to the general principles which I have
already described arises in cases of the type in suit.
19. A
Plaintiff in an action such as this, in order to obtain an interlocutory
injunction must show not merely that he has raised a serious issue concerning
the words complained of but that there is no doubt but that they are
defamatory. Furthermore, if the Defendant intends to plead justification or
any other recognised defence, normally an injunction of this type will be
refused.
20. The
jurisdiction to grant interlocutory injunctions to restrain publication of
defamatory statements has been described as one
"of
a delicate nature"
which
"ought
only to be exercised in the clearest cases
"
(see the judgment of Lord Esher M.R. in
Coulson
v. Coulson
(1887) 3 TLR 846).
21. That
approach was expressly approved by the Supreme Court in
Sinclair
v. Gogarty
(1937 IR 377). In the course of his judgment Sullivan C.J. with whom all four
other members of the Court agreed said:-
22. The
reason for the reluctance on the part of the Courts to grant interlocutory
injunctions in cases of this sort is grounded in the importance attached to the
right of free speech. This has been the position from at least as far back as
the decision in
Bonnard
v. Perryman
where Lord Coleridge said:-
23. The
sentiments expressed by Lord Coleridge have been heeded by the Courts and
nowadays are fortified by the provisions of Article 10 of the European
Convention for the protection of human rights and fundamental freedoms.
25. It
is therefore clear that the first matter which I must enquire into is whether
or not the Plaintiff's complaints are made out with the degree of clarity
required so as to enable me to conclude that the words complained of are
undoubtedly defamatory.
26. If
I so conclude in favour of the Plaintiff, I then have to consider whether, in
the light of the Defendant's stated intention to plead justification concerning
the drug dealing allegation, an injunction can be granted at all.
27. The
reason why I have to consider this aspect of the matter arises because of the
decision in
Bonnard
v. Perryman
.
As I have already pointed out, the decision in that case was approved by the
Supreme Court in
Sinclair
v. Gogarty
.
The rule established by that decision is that where a defendant in a libel
action intends to plead justification, a Court will not grant an interlocutory
injunction to restrain publication of the statement complained of.
28. The
question then arises as to whether a bald statement of intent to plead
justification is sufficient to debar a plaintiff who might otherwise be
entitled to an injunction from such relief. If it is, then the Plaintiff's
application in respect to the drug dealing activities must be doomed to
failure. Counsel on behalf of the Plaintiff urges me not to adopt this
approach but rather to conduct an examination of the Defendant's evidence so as
to establish whether the plea of justification has any substance or prospect of
success.
29. There
appear to be two conflicting decisions in this jurisdiction as to the proper
approach to take on this topic.
30. On
the one hand there is the decision in
Gallagher
v. Tuohy
(1924) 58 ILTR 134 where the matter complained of consisted of a circular
containing defamatory statements concerning the plaintiff in his business
capacity. Murnaghan J. stated:-
31. On
the other hand, the decision of the Supreme Court in
Cullen
v. Stanley
(1926) IR 73 demonstrates a different approach. There the Plaintiff sought an
interlocutory injunction to restrain the publication of statements by the
Defendants to the effect that he had acted as "scab" on the occasion of a
bakers' strike. The Plaintiff deposed that the statements were absolutely
false and that he believed the publication was for the purpose of prejudicing
his position as a candidate in an election. One of the Defendants submitted an
Affidavit stating that all the allegations were true, and that he would prove
this at trial. The Supreme Court nonetheless granted an interlocutory
injunction. O'Connor J referred to the argument of the Defendant to the effect
that the rule in
Bonnard
v. Perryman
automatically precluded the grant of an interlocutory injunction once the
defence of justification was raised. He said
32. The
judge then examined the detailed Affidavit of the Plaintiff, which he
contrasted with the "baldest Affidavit" of the Defendant. He held that on the
evidence before that Court there was nothing to support the plea of
justification.
33. Of
these two approaches I prefer the latter. I do not think that a rule which
permits a Defendant to in effect oust the ability of this Court to intervene by
way of injunction in an appropriate case by the simple expedient of expressing
an intention to plead justification at the trial of the action is consistent
with the obligations imposed on the Court under the Constitution. Furthermore,
the application of such a rigid rule, without an ability on the part of the
Court to ascertain whether the plea of justification had any substance or not,
would provide a happy hunting ground for unscrupulous defamers.
34. I
am therefore satisfied that it is open to the Court to examine the evidence
adduced by the Defendant in support of the justification plea so as to
ascertain whether it has any substance or prospect of success.
36. In
looking at these allegations I note that the Plaintiff accepts that he,
together with 19 other nightclub operators in the Greater Dublin Area, has
received notification from the police concerning drug activity and conduct
relating to drugs on his club premises.
37. I
have carefully read and re-read the parts of the article in respect of which
complaint is made under this heading. Mr Malocco contends that in their
natural and ordinary meaning the words in question do not allege any criminal
activity on the part of the Plaintiff. In that regard I believe him to be
correct. Even if I am wrong on that and the words do, in their natural and
ordinary meaning, make such allegations, they certainly do not do so with the
degree of clarity required to enable me to say that the words are without doubt
defamatory of and concerning the Plaintiff.
38. I
therefore must now turn to the contention of the Plaintiff to the effect that
by innuendo the words complained of amount to allegations of the wrong-doing
alleged. The Plaintiff's Counsel says that that is the clear inference which
is to be drawn from the article. Amongst other things he says that whilst the
article purports to deal with drugs in clubs (as is apparent from the cover of
the magazine) in fact it is directed almost exclusively at the Plaintiff. A
fair reading of the article supports this contention. The article speaks of
the Plaintiff being "in big trouble". It alleges that his premises has been
visited by the police who bought drugs there on several occasions. It speaks
about this not being the Plaintiff's first brush with the law, but of him now
facing difficulties which are "far more serious". It alleges that the
Plaintiff "is seriously worried". It speaks of the consequences for him of a
successful prosecution. It then resorts to a device frequently used by
journalists of citing anonymous "sources close to" the Plaintiff, and
indicating that the Plaintiff is concerned that "if convicted" other business
interests he has might also suffer. In the same paragraph it goes on to point
out that it would not be the first time that a nightclub owner was jailed. It
then deals with a Donegal owner who was imprisoned for three years for allowing
drugs to be sold on his premises.
39. Later
in the article it speaks about it remaining to be seen if any premises are to
be closed down or licensees jailed. In the same paragraph it mentions that
cynics believe that no club owners will ever be jailed and that those club
owners who are directly involved in drugs will continue for some time to make
vast profits from allowing their venues to be used as drug havens. This
paragraph is juxtaposed close to the photograph of the Plaintiff's car where it
speaks of him enjoying "the high life".
40. True
it is that the article then goes on to say that it is unlikely that the owners
of these clubs knew of these particular drug dealings as they have all adopted
additional security measures to prevent the transactions in question. That
statement comes in the final paragraph of the article.
41. I
have come to the conclusion that looking at the parts of the article which are
complained of as a whole, there is present an innuendo to the effect contended
for by the Plaintiff. Furthermore I am of the view that such an innuendo is
clear and that in the absence of a successful plea of justification a jury
would say that the matter complained of was libellous. If they did so I do not
believe that the Supreme Court would set aside the verdict as unreasonable. If
the jury did not do so its decision would be likely to be set aside. I do not
think that the inclusion of a single sentence in the final paragraph of the
article would have much prospect of neutralising the sting contained in the
remainder of it.
42. It
seems to me that the article is carefully written so as to avoid making the
direct allegation of criminal wrong-doing whilst at the same time creating in
the mind of the reader a clear impression that the Plaintiff has connived at
the use of his premises for drug dealing with considerable gain to himself.
43. If,
of course, the Defendants can satisfy me that they have a prospect of success
in their plea of justification then there can be no question of an injunction
being granted in favour of the Plaintiff.
44. Apart
of the stated intention to plead justification what admissible evidence is
there to support that plea? I refer to "admissible evidence" because earlier
in the hearing I struck out portions of the Defendants' principal replying
Affidavit together with the Affidavit of Luciano Magliocco pursuant to Order 40
Rule 12 of the Rules of the Superior Courts because of the scandalous material
contained in them.
45. Having
examined the remaining portions of the Affidavit evidence it seems to me that
the only real evidence which could amount to justification is that contained in
paragraph 15 of the first named Defendant's Affidavit. He says
46. I
do not think that that averment goes anywhere near demonstrating the existence
of an arguable prospect of making out the defence of justification.
47. Throughout
the article the Plaintiff is referred to on a number of occasions as a "gay
bachelor". He says that in its natural and ordinary meaning, the word gay is
nowadays taken as meaning homosexual. He says that that is clearly defamatory
of and concerning him and on this aspect of the matter it is to be noted that
the Defendants disavow any intention to plead justification. On the contrary
they accept that the Plaintiff is not homosexual but say that they never
alleged that he was. In support of this contention they make a number of
arguments which I will deal with in turn.
48. First,
they say that the term "gay" is an adjective used to describe a person's
demeanour as in "lively, cheerful, vivacious, light-hearted, fond of pleasure
and gaiety".
49. Had
this argument been made thirty years ago it would probably have succeeded. But
it is an absurd proposition to put to the Court in 1998.
50. Language
is a living thing and words can change their meaning over the years. Sometimes
the primary meaning of a word will undergo subtle or even profound changes. On
other occasions the word may acquire a secondary meaning which it did not
formerly have. The word "gay" falls into the second category. Over the last
thirty years or so it has come to be synonymous with homosexuals and homosexual
activity. One would have to be resident on the moon not to be aware of this.
Not merely has it acquired this secondary meaning but it has in fact eclipsed
the primary meaning so that nowadays one rarely hears the term used other than
a denoting homosexuals or homosexual activity. I reject the Defendants'
contention that the word is confined to the meanings asserted by them which I
have reproduced in parenthesis above.
51. The
next contention is that the use of the word "gay" (as an adjective) qualifying
the noun "bachelor", is a term in common use to refer to men who are happily
unmarried. The Defendants contend that when the term "gay bachelor" is used it
never indicates that the person is a homosexual. Again it seems to me that
this argument could be made with telling force had this case occurred in 1968
rather than 1998. It is true that the term "gay bachelor" or "bachelor gay"
may still be used with slightly more frequency than the word "gay" in its
original meaning. Nonetheless it seems to me that nowadays the term has
practically fallen out of use largely because of the secondary meaning of the
word "gay". I therefore reject the contention made by the Defendant that this
term could not be defamatory.
52. The
next contention made by Mr Mallocco is to the effect that even if he is wrong
in these contentions to allege of a person that he or she is "gay" is not
harmful to reputation. Mr Malocco says "homosexuality is an accepted part of
Irish life and the days are long gone when homosexuals were simple tolerated;
they are now accepted and integrated into the fabric of Irish life like other
minorities and this magazine fully endorses that reality". Mr Cooney S.C. for
the Plaintiff says that this argument holds no water. He says that an
allegation of being gay is an allegation of deviant sexual practice which many
people in Irish society find repellent. He therefore argues that it is clearly
defamatory.
53. No
cases were cited by either side in support of the conflicting positions which
they argue for.
54. My
own researches have however discovered a decision of the Court of Appeal in
England which is of assistance. In
Regina
-v- Bishop
(1975) 1 QB 274 that Court had to consider a case where a Defendant was tried
at first instance on a charge involving theft from a bedroom. In evidence he
explained the presence of his fingerprints in the room by saying that he had
had a homosexual relationship with a prosecution witness, which that witness
had denied. The prosecution sought leave to ask the Defendant questions
tending to show that he had been convicted of offences other than that charged
because the nature and conduct of the defence was such as to involve
imputations on the character of the witness for the prosecution within Section
1(f)(II) of the Criminal Evidence Act, 1898. The Defendant objected on the
grounds that, in view of Section 1(1) of the Sexual Offences Act, 1967, an
allegation that a man was a homosexual or practised homosexuality was not an
imputation on his character within Section 1(f)(II) of the Act, 1898, and in
any event the allegation had been made for the purpose of explaining the
Defendant's presence in the room and not for that of discrediting the testimony
of the prosecution witness. The objection was rejected, questions about the
Defendant's previous convictions were asked, and he was convicted. He appealed
to the Court of Appeal on the grounds that his objections to the evidence of
his previous convictions had been wrongly rejected.
55. That
Court (Stephenson L.J. MacKenna and O'Connor J.,J.) dismissed the Appeal. The
Court held that the character of a witness was impugned by an allegation of
homosexual conduct made against him and an imputation of homosexual immorality
against a witness might reflect on his reliability, generally or in the witness
box. The Court also held that a Defendant who made such an attack but
disclaimed the intention to discredit the testimony of the witness nevertheless
was still subject to the risk of cross-examination as to his own record. In
the course of delivering the judgment of the Court Stephenson L.J. said:-
56. Whilst
this last statement is very much on point in respect of the issue that I have
to deal with here it is of course a statement made obiter. Nonetheless it does
appear to me to represent the legal position in England and in my view it also
represents the legal position in Ireland.
57. Quite
apart from the decision which I have just cited it does not appear to me to be
sound to suggest that merely because an activity is no longer prohibited by the
criminal law an allegation of engaging in such activity cannot be defamatory.
The commission of adultery is not a criminal offence but nobody could seriously
suggest that an allegation of adultery could not be defamatory. Similarly, to
lie is not a criminal offence, but again can it be seriously suggested that to
call a person a liar is not defamatory?
59. The
Defendant does however say that the photograph of the Plaintiff with a woman
(albeit with her face blocked out) on his arm, and the suggestion that the
Plaintiff is "featured regularly in the tabloid gossip columns where the names
of his latest model girlfriends are plugged" makes it plain that no allegation
of homosexuality is being made. I do not agree. It seems to me that it would
be perfectly open to a jury to hold that the use of the word "gay" in relation
to the Plaintiff either in its natural or ordinary meaning or by innuendo was
an allegation of homosexuality. A jury would be entitled to find in the
Plaintiff's favour in that regard and if they did it does not appear to me that
their verdict could be regarded as perverse. I do not think that the sting is
removed by the reference to the appearance of the Plaintiff in the tabloid
gossip columns or the photograph which accompanies the article.
60. As
there is no plea of justification in respect of this complaint it follows that
the Plaintiff has made out a sufficiently strong case in my view to satisfy the
test required for the grant of an interlocutory injunction.
63. In
the present case I now have to consider, having found in favour of the
Plaintiff in respect of the complaints concerning the libels alleged, whether
or not an injunction ought to be granted.
64. I
would not wish to set out in a hard and fast manner the factors which the Court
should or could take into account in the exercise of this discretion. It is
sufficient if I identify one item of particular importance which affects me in
the exercise of my discretion in this case.
65. If
I refuse the Plaintiff this injunction, it is clear that the article will be
published and the Plaintiff will be left to his remedy in damages at a trial to
be held at some time in the future. Damages are the normal remedy for
defamation and injunctions are not. Nothing in this judgment should be taken
to dilute that approach. In the present case, however, the question arises as
to what damages the Plaintiff would be likely to recover against the Defendants
at trial.
66. The
first named Defendant, has, on his own admission, recently completed a lengthy
prison sentence imposed for offences of dishonesty. He formerly practised as a
solicitor but that option is no longer open to him. There is uncontroverted
evidence that he has unsatisfied judgments against him for a sum of money in
excess of £40,000. It is also uncontroverted that he has other
outstanding liabilities arising from the period when he practised as a
solicitor. It seems to me, as a matter of probability, that the prospects of
the Plaintiff ever recovering other than a paper judgment against Mr. Malocco
are remote.
67. From
the information that emerged at the hearing on Monday and Tuesday of this week,
Messrs Murray and White do not exist.
68. There
remains the curious figure of Mr. Laur. He did not appear either personally or
through Counsel. Whilst in the magazine he gives his address as "London", the
only address to which the proceedings could be directed was at Foxrock Post
Office. He describes himself as being the magazine's publisher yet we now know
that the publisher is Fanville Limited, the added Defendant. It seems to me
that the shadowy figure of Mr. Laur is unlikely to prove to be any better
prospect for the recovery of damages than Mr. Malocco.
69. Finally,
there is Fanville Limited. this two pound company with both shares held by
another limited liability company seems unlikely to make any judgment which the
Plaintiff may obtain against it any less hollow than the judgment against the
other Defendants.
70. In
these circumstances I am quite satisfied that my discretion must be exercised
in favour of granting an injunction rather than refusing it. To refuse it
would be to consign the Plaintiff to a trial where damages would be an
inadequate remedy because of the virtual impossibility of ever recovering any
sum awarded.
71. It
follows that the Plaintiff is entitled to interlocutory relief and I therefore
grant until trial an Order restraining the Defendants and each of them, their
servants or agents or any person acting in concert with them or any person with
notice of the making of this Order from in any manner or fashion howsoever
publishing of or concerning the Plaintiff an article entitled "Operation
Night-cap Causes John Reynolds Sleepless Nights As Cops Raid Club" or any
matter contained therein defamatory of the Plaintiff's reputation.