Broome v Cassell & Co Ltd [1972] AC 1027 (HL)

Facts

  • Captain John Broome, a Royal Navy officer, was defamed in the book The Destruction of Convoy PQ17 published by Cassell & Co Ltd.
  • The book contained statements which were held to be libellous about Broome's actions during World War II.
  • Broome sued for libel, seeking both compensatory and exemplary damages.
  • At first instance, the jury awarded Broome £40,000, a significant portion of which was exemplary damages.
  • Cassell & Co Ltd appealed, arguing that the exemplary damages awarded were excessive and unjustified.
  • The Court of Appeal reduced the damages.
  • The House of Lords was tasked with determining the appropriateness of exemplary damages and the proper method of calculating any award in the circumstances.

Issues

  1. Whether exemplary (punitive) damages can be awarded in defamation cases, and under what categories or conditions.
  2. Whether the defendant's conduct in this case satisfied the criteria for such an award as established in prior authority.
  3. Whether the amount of damages awarded was excessive and violated principles of proportionality.

Decision

  • The House of Lords reaffirmed the restrictive categories for exemplary damages set out in Rookes v Barnard [1964] AC 1129.
  • Exemplary damages are permitted only where the defendant's conduct falls into (1) oppressive, arbitrary or unconstitutional action by government officials; (2) conduct calculated to yield a profit greater than any compensation payable; or (3) where expressly authorized by statute.
  • The Court found that Cassell & Co Ltd’s conduct did not fall within these categories—there was no finding that the actions were oppressive by officials, for profit to exceed compensatory damages, or authorized by statute.
  • The House of Lords emphasized that exemplary damages must remain exceptional, not routine, especially in defamation cases.
  • Excessive exemplary damages risk undermining the credibility and fairness of the legal system.
  • The damages awarded to Broome were reduced, with a primary focus on compensatory damages.

Legal Principles

  • Exemplary damages in tort, particularly defamation, are exceptional and strictly limited to clearly defined categories.
  • The categories for awarding exemplary damages are (1) oppressive, arbitrary, or unconstitutional conduct by government officials; (2) conduct calculated for profit exceeding potential compensation; (3) statutory authorization.
  • Courts must apply exemplary damages sparingly and ensure that any award is proportionate.
  • Civil remedies are meant primarily to compensate the plaintiff rather than punish the defendant, except in the exceptional categories identified.
  • Clear standards for calculating and awarding damages help ensure predictability and fairness in civil litigation.

Conclusion

The House of Lords in Broome v Cassell & Co Ltd [1972] AC 1027 reaffirmed that exemplary damages in defamation claims are limited to rare categories from Rookes v Barnard, restricting punitive awards and insisting on proportionality, thus ensuring clarity and predictability in defamation and tort law.

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