Overview

This Defamation Bill aims to amend the law on defamation, specifically regarding the ability of companies and other non-natural legal persons to sue for defamation. The core change restricts the ability of businesses to bring defamation claims unless they can demonstrate substantial financial harm.

Description

The bill focuses on limiting defamation lawsuits brought by non-natural persons (corporations, legal persons trading for profit, and trade associations representing profit-making organizations). Key aspects include:

• Court Permission Requirement: Such entities must obtain court permission before initiating a defamation claim.
• Substantial Financial Loss Threshold: The court will dismiss the application unless the claimant (the business) demonstrates that the defamation caused, or is likely to cause, substantial financial loss.
• Exception for Public Function: Non-natural persons performing a public function are excluded from bringing defamation actions related to their public role.
• "Serious Harm" Redefined for Businesses: Reputation harm for profit-making entities is only deemed "serious harm" if it has caused or is likely to cause serious financial loss. This amendment replaces the initial proposal for a complete restriction on such claims.

Government Spending

The bill is unlikely to have a direct impact on government spending. Any costs would likely be associated with the court system processing applications and hearings related to defamation claims under the new criteria.

Groups Affected

• Businesses (Corporations, etc.): Significantly impacted; their ability to sue for defamation is heavily restricted, requiring proof of substantial or serious financial loss.
• Trade Associations (representing for-profit organizations): Similarly restricted in their ability to bring defamation claims.
• Individuals/Natural Persons: Generally unaffected; the bill primarily targets non-natural legal persons.
• The Courts: Will experience changes in the number and type of defamation cases processed due to the higher threshold for bringing claims.

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