Liquor Marketing Group v Sadler

The appeal concerned a defamation action brought by Liquor Marketing Group (LMG) against Mr. Sadler. The dispute arose from a publication made by Mr. Sadler, which LMG alleged contained defamatory imputations concerning its business. The matter was heard in the Court of Appeal of New South Wales.

The primary legal issues before the court were whether a defamatory imputation could be drawn from the publication, whether the pleading of defamatory innuendo was sufficiently made out, and whether qualified privilege, both under statute and common law, applied to Mr. Sadler's publication. Additionally, the court considered whether LMG had been afforded natural justice and whether the proceedings should be remitted for a rehearing solely on the issue of damages.

The Court of Appeal found that the imputation alleged by LMG was not capable of being drawn from the publication. The court analysed the meaning of the words used in their ordinary and natural sense, and in the context of the publication, concluding that the alleged defamatory meaning was not conveyed. The court also considered the defence of qualified privilege, examining the circumstances of the publication and the duty or interest that might have justified it. The court determined that the question of natural justice and the potential for remittal on damages were contingent on the primary findings regarding the defamatory nature of the imputation.

The appeal was allowed.