Palmer Bruyn & Parker Pty Ltd v Parsons

The appellant, Palmer Bruyn & Parker Pty Ltd, appealed to the High Court of Australia after failing in both the District Court of New South Wales and the Court of Appeal of New South Wales. The appellant, a surveying company, claimed damages for injurious falsehood against the respondent, Mr Parsons, a councillor. The dispute arose from a letter sent by the respondent to another councillor, which the appellant alleged contained false statements and caused it to lose a contract with McDonald's Australia Ltd.

The High Court was required to determine whether the loss of the McDonald's contract was caused by the respondent's publication of the forged letter, and if so, whether that loss was a natural and probable consequence of the publication. The court also considered the elements of the tort of injurious falsehood, particularly in relation to causation and the proof of actual damage.

The court reasoned that for a claim of injurious falsehood to succeed, the plaintiff must prove that the publication of the false statement was a substantial factor in bringing about the loss. While the fact that McDonald's knew the letter was forged did not automatically defeat the claim, the court found that the loss of the contract was not a natural and probable result of the original publication. This conclusion was based on the findings of the lower courts, which were upheld.

The appeal was dismissed with costs.