The appellant, a senior advocate in Cape Town, sued the respondents for damages arising from a defamatory statement published in an affidavit filed in condonation proceedings. The third and fourth respondents (Fey and Lane) were joint trustees of an insolvent estate. In an affidavit supporting a condonation application for late filing of replying affidavits, Lane stated that certain attorneys were "being manipulated by the insolvent's Counsel [the appellant] to take up an attitude which favoured the insolvent, but was wholly inappropriate, given their duties as officers of the Court". Fey associated herself with this statement. The first and second respondents (Coopers & Lybrand and Republic Trustees) were the respective employers of Fey and Lane, joined on the basis of vicarious liability. The defamatory statement was made in the context of attorneys having reneged on undertakings to provide documents at an insolvency enquiry, allegedly on the appellant's advice. The appellant represented both the insolvent and certain attorneys at the enquiry.
The appeal was allowed with costs, including costs of two counsel. Judgment was granted against the defendants jointly and severally in the sum of R30,000 together with interest a tempore morae calculated at the appropriate legal rate from the date of service of summons to date of payment, and costs including costs of two counsel.
A defamatory statement published in the course of civil judicial proceedings is privileged only if it is relevant to an issue in those proceedings. The test for relevance is objective: whether the defamatory matter could fairly be regarded as reasonably necessary to protect the interest or discharge the duty which was the foundation of the privilege. Relevance in this context is not the same as evidential relevance, but is essentially a value judgment based on reason and common sense. Speculative defamatory statements that are not reasonably necessary to advance a litigant's case lack relevance and are not protected by qualified privilege, even when published in judicial proceedings. For vicarious liability, a broader multi-faceted test taking into account all relevant factors, including questions of policy and fairness, should be applied rather than merely the traditional control test.
The Court observed that: (1) A more generous approach to relevance may be justified for witnesses giving viva voce evidence compared to deponents to affidavits, given the opportunity for reflection and advice in the latter situation. (2) It was probably unwise for the appellant to have acted for both the attorneys and the insolvent simultaneously given the potential conflict of interest, though this did not affect the outcome. (3) The law of defamation requires a balance between the right to reputation and freedom of expression, both of which are protected by the Constitution (sections 10 and 16(1)). (4) The public interest requires that the approach to relevance should not be too strict lest it unduly restrict freedom of speech, but too liberal an approach could undermine protection of dignity. (5) Care must be taken not to award large sums of damages too readily lest doing so inhibits freedom of speech or encourages intolerance and litigation. (6) Comparisons with awards in other defamation cases serve limited purpose as each case must be assessed on its own facts against prevailing community attitudes.
This case is significant in South African defamation law for: (1) clarifying the test for relevance in qualified privilege defences, preferring an objective approach based on whether defamatory matter could fairly be regarded as reasonably necessary to protect the interest underlying the privilege; (2) emphasizing that relevance in the context of qualified privilege is not to be equated with strict evidential relevance, but is a value judgment based on reason and common sense; (3) holding that speculative defamatory statements lack relevance even if ultimately found to be true; (4) establishing that gratuitous insults unnecessary to advance a litigant's case are not protected by privilege even when made in judicial proceedings; (5) applying modern vicarious liability principles beyond the traditional control test, considering all relevant factors including policy and fairness; and (6) demonstrating the balance required between protection of reputation and freedom of expression, particularly in the context of the constitutional rights to dignity and freedom of speech.