Channel Seven Sydney Pty Ltd v Mahommed

The Court of Appeal of New South Wales considered an appeal by Channel Seven Sydney Pty Ltd against a defamation judgment awarded to Mr. Mahommed. The dispute concerned imputations published by Channel Seven that Mr. Mahommed, a police officer, had engaged in corrupt conduct, including accepting bribes and perverting the course of justice. Mr. Mahommed alleged these publications were defamatory and caused him significant damage to his reputation.

The primary legal issues before the Court of Appeal were whether the defence of substantial truth under section 15 of the *Defamation Act 1974* (NSW) had been established in relation to certain imputations, and whether the defence of contextual truth under section 16 of the *Defamation Act 1974* (NSW) applied. Additionally, the court had to determine the admissibility and relevance of evidence of Mr. Mahommed's alleged bad reputation, both pre- and post-publication, for the mitigation of damages, including the use of judicial findings from other proceedings and evidence already before the court. The court also considered the assessment of damages for separate publications and whether the original award was excessive.

The Court of Appeal found that while some imputations were substantially true, the defence of substantial truth did not apply to all of them, and therefore the defence of contextual truth was also not made out. The court clarified the principles regarding the admissibility of evidence of bad reputation, confirming that such evidence must relate to the relevant sector of reputation harmed by the imputations and that post-publication evidence is admissible, subject to certain conditions. The court also held that judicial findings from other proceedings could be used in mitigation of damages, provided they were properly admitted.

Ultimately, the Court of Appeal allowed the appeal in part, setting aside the original order and substituting a verdict for Mr. Mahommed in the amount of $125,000 in respect of the third publication (the programme). The parties were directed to calculate interest on the revised damages, and the costs of the appeal and the trial were reserved, with written submissions to be filed by both parties.