Derbyshire CC v Times Newspapers Ltd [1993] UKHL 18 (18 February 1993)

Derbyshire County Council sued The Sunday Times for libel over articles questioning the propriety of investments made by the council's superannuation fund. The House of Lords unanimously held that local authorities and governmental bodies cannot sue for defamation, as allowing such actions would create an undesirable fetter on freedom of speech and public criticism of government.

Facts

The Sunday Times published articles on 17 and 24 September 1989 questioning the propriety of certain investments made by Derbyshire County Council from its superannuation fund. The articles alleged questionable dealings between the council leader, Mr Bookbinder, and a businessman, Mr Oyston. The council brought an action for libel against Times Newspapers Limited, the editor Andrew Neil, and two journalists, claiming the articles had injured the council’s credit and reputation.

Procedural History

At first instance, Morland J decided the preliminary point of law in favour of the council. The Court of Appeal reversed this decision, holding that a local authority was not entitled to maintain an action for libel. The council appealed to the House of Lords.

Issues

The central issue was whether a local authority is entitled to maintain an action in libel for words which reflect upon it in its governmental and administrative functions, or indeed whether a local authority can sue for libel at all.

Judgment

The House of Lords unanimously dismissed the appeal, affirming the Court of Appeal’s decision.

Lord Keith’s Reasoning

Lord Keith, delivering the leading judgment with which all other Law Lords agreed, examined the earlier authorities including Manchester Corporation v Williams [1891] and Bognor Regis Urban District Council v Campion [1972]. He distinguished governmental bodies from trading corporations and charitable organisations.

Lord Keith emphasised the fundamental importance of uninhibited public criticism of democratically elected governmental bodies. He cited with approval the American case City of Chicago v Tribune Co. (1923) and the South African case Die Spoorbond v South African Railways (1946), which had reached similar conclusions about governmental bodies being unable to sue for defamation.

Lord Keith noted that defamatory statements against a local authority necessarily attack the controlling political party or executives, who can themselves bring individual proceedings if their personal reputation is wrongly impaired. He also observed that controlling bodies can defend themselves through public utterances and debate in the council chamber.

Lord Keith concluded that under the common law of England, a local authority does not have the right to maintain an action of damages for defamation. He stated that not only is there no public interest favouring the right of organs of government to sue for libel, but it is contrary to the public interest that they should have it, as it would place an undesirable fetter on freedom of speech.

Consistency with European Convention

While the Court of Appeal had reached its conclusion primarily by reference to Article 10 of the European Convention on Human Rights, Lord Keith reached his conclusion based on the common law of England alone, finding it satisfactory that the common law is consistent with the Convention obligations.

Implications

This case established the important principle that governmental bodies, whether central or local, cannot sue for defamation. The decision overruled Bognor Regis Urban District Council v Campion [1972]. The judgment reinforced the fundamental importance of freedom of speech in criticising government, recognising that the threat of civil actions for defamation has a chilling effect on legitimate public discourse. Individual councillors or officers retain their personal right to sue if their individual reputation is wrongly impaired.

Verdict: Appeal dismissed. The House of Lords affirmed the Court of Appeal’s decision that a local authority cannot maintain an action for libel. Bognor Regis Urban District Council v Campion [1972] was overruled. The appellants were ordered to pay the respondents’ costs.

Source: Derbyshire CC v Times Newspapers Ltd [1993] UKHL 18 (18 February 1993)