Thunder Studios Inc (California) v Kazal (No 10)

The case of Thunder Studios Inc (California) v Kazal (No 10) involved a dispute over defamation damages and the relevance of certain evidence. The parties to the case were Thunder Studios Inc, a Californian film production company, and Kazal, an individual who was the subject of defamatory publications. The nature of the dispute was primarily focused on the admissibility of particulars of mitigation and the relevance of certain background context evidence in the assessment of damages for defamation.

The legal issues that the court had to decide included whether the particulars of mitigation presented by Kazal were directly relevant to the background context of the defamatory publication and whether the questioning of Kazal during cross-examination was permissible when the respondent had no defence. Additionally, the court had to determine if the material relied on in mitigation was sufficiently connected to the assessment of damages or Kazal's credibility.

In its decision, the court held that the particulars of mitigation presented by Kazal were not directly relevant to the background context of the defamatory publication and, therefore, could not be relied on in mitigation of damages. The court reasoned that the material in question had not been presented as part of a substantive defence to liability and that it was illogical and undesirable for the defendant to rely on such facts in relation to the assessment of damages. Furthermore, the court held that the questioning of Kazal during cross-examination was not permissible as the respondent had no defence.

The final orders of the court were that paragraph 1(a)(i), (b) and (c) of the respondents’ particulars relied on in mitigation dated 22 October 2020 be struck out. The court further noted that the issue of the admissibility of questions relating to the findings of the Grand Court would be left to when it arises. The entry of orders was dealt with in Rule 39.32 of the Federal Court Rules 2011.