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
- Whether exemplary (punitive) damages can be awarded in defamation cases, and under what categories or conditions.
- Whether the defendant's conduct in this case satisfied the criteria for such an award as established in prior authority.
- 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.