Knell v Harris [No 5]

The defendants, Mr Lance and Mr Porter, sued the plaintiff, Mr Knell, over emails sent by the defendants to various apartment owners alleging that Mr Knell was involved in fraudulent activities. The court was required to determine whether the defendants' communications constituted defamation and whether they were protected by qualified privilege. The defendants argued that their communications were protected by qualified privilege because they were made in good faith for the protection of a legitimate interest, namely the management of the strata scheme. The court found that the defendants' communications were indeed defamatory, as they implied that Mr Knell had engaged in dishonest conduct. However, the court also found that the defendants' communications were protected by qualified privilege. The court held that the defendants had a legitimate interest in ensuring that the strata scheme was managed properly and that they had reasonable grounds for believing that Mr Knell's conduct required investigation. The court found that the defendants' communications were made in good faith and that they were not motivated by spite or malice.

The court further found that the defendants' communications were not reckless as to whether they were true or not. The court held that the defendants had conducted a reasonable investigation into the matters they were communicating about and had obtained legal advice before sending the emails. The court found that the defendants' communications were necessary for the protection of their legitimate interest and that they were not made with a primary purpose of causing damage to Mr Knell's reputation. The court held that the defendants' communications were protected by qualified privilege and that the action was therefore dismissed. The court did not make any orders for costs.