Derbyshire County Council v Times Newspapers Ltd
| Jurisdiction | England & Wales |
| Judgment Date | 15 March 1991 |
| Date | 15 March 1991 |
| Court | Queen's Bench Division |
Queen's Bench Division
Before Mr Justice Morland
Libel - local authority - ability to sue
A local authority could sue for libel in respect of its governmental and administrative reputation although no actual financial loss was pleaded or alleged.
Mr Justice Morland so held in the Queen's Bench Division in a reserved judgment allowing a libel action by Derbyshire County Council to proceed against Times Newspapers Ltd, Mr Andrew Neill, Miss Rosemary Collins and Mr Peter Hounam, in respect of certain articles in The Sunday Times on September 17 and 24, 1989.
Mr Anthony Lester, QC, Mr Desmond Browne, QC and Miss Presiley Baxendale for Times Newspapers; Mr Alan Newman, QC and Mr Antony White for the council.
MR JUSTICE MORLAND said that the preliminary point was whether a local authority could sue for libel in respect of its governmental and administrative functions including its statutory responsibility for the investment and control of the council's superannuation fund, and whether the statement of claim disclosed a cause of action.
This was the third case of a local authority bringing an action for libel. The first, which was unsuccessful, was Manchester Corporation v WilliamsELR ([1891] QB 94), a Divisional Court decision, and the second, before Mr Justice Browne, which was successful, was Bognor Regis UDC v Campion([1972] 2QB 169).
His Lordship was bound by Police Authority for Huddersfield v WatsonELR([1947] KB 842, 848) and would follow Bognor Regis unless convinced that it was wrong and had to follow Manchester unless it was reached per incuriam. Alternatively, both those decisions might be right, but some of the reasoning might be defective.
First question
From Metropolitan Saloon Omnibus Co Ltd v HawkinsENR ((1859) 4 H & N 87) it was implicit that all corporations might sue for libel and that included municipal corporations.
His Lordship agreed with Mr Newman's submission that the Manchesterdecision was per incuriam in so far as it was founded on dicta inMetropolitan Saloon that a corporation could not be guilty of corruption.
Mr Newman also submitted that if the ratio of the Manchester case was that a corporation could only sue in defamation affecting property or that actual damage had to be pleaded was inconsistent with the Court of Appeal inSouth Hetton Coal Co Ltd v North-eastern News Association LtdELR ([1894] 1 QB 133). His Lordship...
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