Defamation action

Press, 24 December 1985, Page 8

Defamation action

The publishers of the “National Business Review” have failed in their bid to have a $950,000 defamation action struck out by the High Court. New Zealand Marine Farms, Ltd, and two of its principals, Sir Ronald Scott and Mr John Egden, are suing Fourth Estate Newspapers, Ltd, for alleged defamation in two articles about a new salmon farming venture published in November and December last year. /■ The plaintiffs contend the article suggested that Sir Ronald and Mr Egden were parties "to a prospectus

which contained statements andmaterial omissions in-’ tended to mislead deceive the public into subscribing for shares in a profitless venture. In seeking to quash the action, counsel for the de- . fendant, Mr Hugh Rennie, argued that it was impossible for his client to plead ? because the words said to ba defamatory were not identified. He said that New Zealand Marine Farms, Ltd, had not begun business at the time the articles were published, and therefore did not have a reputation that could be damaged.

In his- written decision, Mr ’’ Justice Williamson refused?, the motion' for an order striking out the plaintiffs statement of claim. He did, however, order the plaintiffs to- file a more explicit; statement; specifying thb parts of the article or articles which they alleged defamatory. Hi? | Honour also ruled that even though the company , had not • traded, it could suffer injury which would affect its future trading, efficiency or acceptance in financial and business markets.