THE CONSTITUTIONAL COURT OF THE REPUBLIC OF CROATIA No. U-III-4256/2004 Zagreb, 6 July 2006 The Constitutional Court of the Republic of Croatia, in the First Panel for deciding on constitutional complaints, composed of Judge Željko Potočnjak, President of the Panel, and Judges Ivan Matija, Agata Račan, Smiljko Sokol, Nevenka Šernhorst and Milan Vuković, Panel Members, in proceedings instituted by the constitutional complaint of N. l. d.d. R., represented by the law firm of V., J., Š., S., J. & J. from R., at its session held on 6 July 2006, unanimously rendered the following DECISION I. The constitutional complaint is hereby refused. II. This Decision shall be published in Narodne novine. Statement of reasons 1. The constitutional complaint was lodged against the judgment of the Rijeka County Court, No.: Gž-386/02-2 of 12 February 2003, in which the applicant’s appeal was refused and the judgment of the Rijeka Municipal Court, No.: P-816/99-46 of 29 May 2001, ordering the applicant to pay the plaintiff Š. B. damages of 29,000.00 kunas, upheld. 2. The applicant of the constitutional complaint deems that the above judgments violated his constitutional rights guaranteed in Articles 14/2, 26 and 38 of the Constitution of the Republic of Croatia. In the reasons for the constitutional complaint the applicant repeats his arguments from the earlier proceedings, mainly disputing the findings of the courts on the grounds that they had wrongly and incompletely established facts of the case. He maintains that the journalist validly reported true facts. He also deems that the arguments the court used to substantiate the judgment are completely unconvincing. He says that the plaintiff did act fraudulently and that the reports about this were truthful, that the journalist D. C., the author of the disputed articled, had good reasons to believe that the facts were true, and that did everything in his power to check the accuracy of the information on which he based his article. The author of the article acted in good faith. The applicant deems that the plaintiff did not suffer any mental suffering because of the publication of the article, and proposes that the Court quashes the disputed judgments. 2 The constitutional complaint is not well founded. 3. Article 62/1 of the Constitutional Act on the Constitutional Court of the Republic of Croatia (Narodne novine, Nos. 99/99, 29/02 and 49/02 – consolidated wording, hereinafter: Constitutional Act) provides that anyone may lodge a constitutional complaint with the Constitutional Court if he deems that the decision of a governmental body, a body of local and regional self-government, or a legal person with public authority, which decided about his rights and obligations, or about suspicion or accusation for a criminal act, has violated his human rights or fundamental freedoms guaranteed in the Constitution. In pursuance of the above the Constitutional Court, during its proceedings of offering constitutional-law protection, as a rule within the limits of the request specified in the constitutional complaint, establishes whether there has been a constitutionally impermissible encroachment into the applicant’s constitutionally guaranteed human rights and fundamental freedoms in the proceedings of deciding about his rights and obligations. 4. The court of first instance found that the applicant published an article in the daily newspaper N. l. of 12 January 1999, on page 16, entitled: “Bought a flat which he cannot enter”, with the introductory title: “Another case of fraud on the Rijeka property market”, and the introductory subtitle: “Vendor Š.B. from Rijeka deceives purchaser Ž. B. and the ‘AD N.’ agency from Rijeka, hushes up ongoing ownership dispute for flat in Ul. G. C., regularly recorded in the land registry department of the Rijeka Municipal Court. A fraud of 60.000 DEM." That court found that the plaintiff sold the disputed flat to Ž. B. in September 1998, he entered into possession of the flat at the beginning of October 1998, and that she was at that time recorded as the owner of the disputed flat. It found that at the time when the sales and purchase contract was signed the plaintiff did not know that her former husband had filed proceedings No.: P-3126/98, requesting that the court proclaims him co-owner of the disputed flat on the grounds of matrimonial home rights. From the testimony of D. C., the author of the article, the first-instance court found that the journalist had spoken to the purchaser of the disputed flat Ž. B., the plaintiff’s former husband and the owner of the ‘AD N.’ agency before publishing the disputed article, but that he had not spoken to the plaintiff nor had he examined the land registry books of the Rijeka Municipal Court. The first-instance court found that the applicant did not prove reasons within the framework of Article 23/1 points 3,6 of the Public Communications Act (Narodne novine, No. 83/96) to free him from liability for paying compensation. Point 3 of the above article provides that the publisher shall not pay damages if the damaging information is based on true facts or on facts that the author was justified to believe were true, if he undertook everything necessary to check their accuracy and there is justified public interest in the publication of this information, and if he acted in good faith. Point 6 of the act provides that the publisher shall not pay damages if the disputed information refers to the author’s value judgments and publication was in the public interest, and if he acted in good faith. 3 Finally, the first-instance court found that the publication of the above article, because of its content, defamed the plaintiff’s dignity, reputation and honour. She experienced stress and her way of communicating with her environment changed. Thus she was awarded fair damages for the defamation of dignity, reputation and honour. The second-instance court upheld the first-instance judgment and found that the disputed article stated twice that the plaintiff had committed fraud, and that this qualification of the her acts at the time when the disputed article was published was not true, as the implication was that she was guilty of the criminal offence of fraud. No legally effective judgment had been passed proclaiming the plaintiff guilty of fraud, there was thus no evidence that she had acted fraudulently, and for this reason the information, in the way in which it was published, was in fact not true. The author of the disputed article did not undertake all the necessary activities before publication to check the truth of the information published, so there are no preconditions to free him from liability. Since this case involves a civil-law relationship between the plaintiff, her former husband and the purchaser of the disputed flat, the second-instance court found that no justified public interest was served by the publication of the information and especially not by the wording of the introductory title and subtitle of the disputed article. If the applicant, by publishing the disputed article, wanted to inform the public about such or similar cases in the sale of property, then the public interest would have been served if he had left out the word “fraud” in the introductory title. It was also not necessary to publish the plaintiff’s full name. Thus the court found that the publication of the above article, considering its content, defamed the plaintiff’s dignity, reputation and honour. She experienced stress and her way of communicating with her environment changed. Therefore she was awarded fair damages for the defamation of her dignity, reputation and honour. 5. Article 38 of the Constitution provides as follows: Freedom of thought and expression shall be guaranteed. Freedom of expression shall specifically include freedom of the press and other media of communication, freedom of speech and public expression, and free establishment of all institutions of public communication. Censorship shall be forbidden. Journalists shall have the right to freedom of reporting and access to information. The right to correction shall be guaranteed to anyone whose constitutional and legal rights have been violated by public information. The Public Communications Act lays down the preconditions for realising the principle of the freedom of the press and other public communications media, the right of journalists and other participants in public communications to the freedom of reporting and access to information and their other rights and liabilities for information published, compensation for damage caused by the information published, the publication of announcements and correction of information. 4 In this case, the courts found the first respondent liable and awarded the plaintiff damages on the grounds of Article 22 of the Public Communications Act, which provides as follows: (1) The publisher who causes damage to another person by information published in a public medium has the obligation to compensate it. (2) Damage is (...) causing another person (...) mental suffering (...) (4) Non-material damage is compensated for (…) by paying just monetary compensation for the pain suffered (…) if the intensity and duration of the pain … justify this, in accordance with the general provisions of the law of obligations. (7) In deciding on the amount of the compensation for non-material damage the court shall take into account the degree of the publisher’s liability, the importance of the infringed good and the intensity of the pain suffered (…) the objective of the compensation, circulation, (…) and other circumstances of the case, and also that compensation does not satisfy desires that cannot be connected with its nature and social objective. 6. The Constitutional Court finds that in this case Article 38/1,2 of the Constitution is relevant for reviewing the reasons given in the constitutional complaint. The constitutionally guaranteed freedom of thought and expression, which includes the freedom of press, does not have the meaning of absolute freedom but is subject to restrictions provided for in the Constitution and law. In the case of the public media, for example, these restrictions emerge from Article 13 of the Public Communications Act, in which the legislator, defining the obligations of the media, provided: The public media shall publish exact, complete and timely information, honouring the right of the public to be informed about events, phenomena, persons, objects or activities, and complying with other rules of the journalist profession and ethics (paragraph 1); the public media shall respect the privacy, dignity, reputation and honour of citizens, and especially of children, young people and the family (paragraph 2). Freedom of expression is one of the fundaments of every democratic society. Its protection in the case of the press is of special importance, because it is one of the duties of the press to publish information of public importance. However, the freedom of the press to publish information is restricted by the protection of the reputation and rights of other people. Thus it is important to establish the circumstances under which government bodies take measures that may influence the activities of the press in cases which are of legitimate public interest. In the view of the Constitutional Court, the findings of the courts, that the applicant of the constitutional complaint defamed the plaintiff’s dignity, reputation and honour by publishing untrue information, are acceptable in constitutional law. 5 The Constitutional Court finds that the measures taken for the protection of a person’s reputation, i.e. the compensation order in the above amount, is proportional to the gravity of the defamation of the person’s reputation and the gravity of judicial interference in the freedom of expression, which this act brought about. Since the applicant, as a publisher, did not in his activities comply with the provisions of the Public Communications Act, the Constitutional Court finds that the published article harmed the reputation of another person. Pursuant to all the above, the Constitutional Court finds that the applicant’s constitutional rights guaranteed in Article 38/1,2 of the Constitution have, in this case, not been violated. 7. Starting from the finding in Point 6 of these Reasons, the Constitutional Court did not examine the reasons for the constitutional complaint in relation to the other provisions of the constitution put forward. 8. In accordance with the above findings, on the grounds of Articles 73 and 75 of the Constitutional Act, the Court has decided as in Point I of the Pronouncement. Point II of the Pronouncement is grounded on Article 29 of the Constitutional Act. PRESIDENT OF THE PANEL Željko Potočnjak, LLD, m. p.