Corporate Counsel Update June 2001 Defamation claims against lawyers: Be careful or beware It is of the nature of the legal profession that lawyers are consulted mainly to defend the rights and views of their clients in business transactions and in actual or potential lawsuits. Whether they work in private practice or in a corporate legal department, lawyers carrying out their daily responsibilities (including opinions, corporate press releases, letters or legal proceedings, and so forth) may act to the detriment of the rights of third parties and, hence, commit a fault. Indeed, lawyers’ written or verbal exchanges can sometimes be strong and contain offensive comments. Therefore, lawyers must always be cautious during such exchanges, counsel their clients accordingly, and control their emotions. Under the Code of ethics of advocates,1 a lawyer’s obligations include cooperation, loyalty, and information, as well as acting objectively, moderately, and with dignity.2 The courts have afforded to lawyers some protection (referred to as relative immunity or “qualified privilege”) in the performance of their duties in that lawyers may be held liable only if their comments are false, irrelevant, made in bad faith, or likely to be prejudicial to the person against whom they were directed.3 One thing is certain: lawyers can be held liable by third parties for their wrongful acts. The purpose of the present bulletin is to raise lawyers’ awareness to the risks associated with defamatory actions or statements. The Notion of Defamation In lawsuits where the notion of defamation comes into play, there is an unquestionable conflict between the value of reputation and the value of freedom of speech: [translation] "Whatever is added to the concept of libel is taken from the concept of freedom of speech".4 Yet freedom of speech has never been recognized as an unrestricted right. In fact, Quebec civil law restrains freedom of speech by imposing sanctions on defamation and protecting every person’s reputation.5 André and Richard Nadeau have defined defamation as follows:6 STIKEMAN ELLIOTT 2 [Translation] "Defamation covers any damage done to the reputation or honour of a person, including a corporation, as well as any imputation that exposes the person to hatred, contempt, or even only ridicule". For defamation to give rise to an action in damages, the person sued must be at fault. In this regard, two types of behaviour can constitute a fault. In one situation, the person making the statement may have seriously attacked the victim’s reputation and aimed to ridicule or humiliate the victim, with the intent to cause harm to the victim or to expose the victim to hatred and contempt by the public or by a group. On the other hand, the person making the statement may also have damaged a person’s reputation and thus committed a fault triggering liability for damages to reputation by recklessness, negligence, impertinence or carelessness without any intent to harm.7 Concluding the first part of this review, we need to dispel two popular beliefs surrounding the notion of defamation. First, the courts do not require that the victim of defamation establish malice on the part of the person making the statements if the statements are objectively injurious.8 In his work La responsabilité civile, the Honourable Justice Baudouin writes "It is sufficient to refer to the general rules of civil liability and to abandon once and for all the false idea that defamation necessarily results from bad faith with intent to harm."9 Second, defamation does not result only from the disclosure or publication of false or erroneous information. Indeed, liability is triggered when the facts published are accurate but the sole purpose of their being published is to harm the victim. Some things are better left unsaid: there must be some public interest in stating these facts, and they must not be conveyed for the sole purpose of harming others.10 We will now examine how these notions apply to defamation cases against lawyers. Defamatory Actions or Statements, in Legal Practice Needless to say, in order to carry out their tasks as representatives and advisers, it is essential that lawyers be able to act and express themselves freely for and on behalf of their clients, so that they may defend and adequately represent their clients’ interests. However, lawyers must still abide by certain limits set by the courts. That is, parties cannot use whatever manner they would like to give effect to their claims. Lawyers who put forward irrelevant facts with intent to harm, who make reckless or malicious comments, or who do not take those precautionary measures reasonably expected from a cautious and careful attorney expose themselves to an action in damages under the general rules of civil liability, as mentioned above. The courts will always try to determine whether the lawyers’ statements or allegations were made in good faith (to assist their clients in the exercise of the clients’ rights) or, STIKEMAN ELLIOTT 3 on the contrary, were made recklessly with the intent to harm the person against whom they were directed.11 In both legal writing and case law, the consensus is that lawyers will be held liable for their litigious statements only if they are: • of such a nature to cause damage to the person against whom they are directed; • false; • irrelevant to the case; and • made in bad faith and, therefore, with malicious intent.12 The absence of a reasonable and probable cause to believe that the injurious statements are true can form the basis of a presumption of, or evidence of bad faith or malice. According to Chaput J., whose well-known dictum perfectly summarizes our comments above: What matters is that the allegation be perfectly relevant and, in the circumstances, reasonably true. Lawyers will escape any liability if they can prove that it was necessary to make the statements in order to establish their client’s rights or give effect to them, and if the statement was not made for the sole purpose of causing harm to the other party or exposing the other party to humiliation. In other words, lawyers must at all times be able to establish that they had reasonable grounds to believe that their comments were true and relevant. For this purpose, lawyers need not perform an extensive investigation or verify all the information provided to them by their clients. Nevertheless, they must be able to demonstrate that they have taken certain reasonable precautions to ensure the veracity of the information received from the client.13 Finally, even if the lawyer is exonerated, the client may nevertheless be held liable for the client’s personal fault, for example, for not having verified the truth of the facts conveyed to the attorney, or for having intended to harm the other party. Conclusion We have attempted to define briefly the complex notion of defamation to demonstrate that an action for damages is available to all people who believe that they have been defamed by the acts or statements of lawyers acting in the context of their professional activities. Lawyers must therefore remember that statements made by them will not likely be considered as a fault if they are true (or if their author has reasonable grounds to believe they are true) and if they are relevant or necessary to attain the desired result. These two criteria – veracity and relevance – should always guide the practising lawyer. Moreover, as counsel, lawyers must ensure that their STIKEMAN ELLIOTT 4 clients have verified the truth of the facts provided to lawyers, since the client is also not immune to defamation lawsuits. In other words, when dealing with defamation, let good faith and caution be your guide. R.R.Q., 1981, c. B-1, r.1. See particularly articles 2.03, 3.02.01d) and 4.02.01; See also Selig v. Coallier, [1997] R.R.A. 1052 (C.S.). 3 Pearl c. Byers, [1986] R.J.Q. 1194 (C.S.); Falardeau v. Bordeleau, [1995] R.J.Q. 1267 (C.Q.); Colas v. Roy, [1997] R.R.A. 203 (C.S.); Lecours v. Pichet, J.E. 98-243 (C.Q.). 4 Sweeney c. Patterson, 128 F.2d 457 (D.C. Cir. 1942) 458. 5 See in particular articles 35 and 1457 of the Civil Code of Québec. 6 André NADEAU and Richard NADEAU, Traité pratique de la responsabilité civile délictuelle, Montréal, Wilson & Lafleur, 1971, p.249 (translated from the original French). 7 See particularly Rizzuto v. Rocheleau, [1996] R.R.A. 448 (C.S.). 8 Van Den Hoef v. Air Canada, [1988] R.R.A. 543 (C.S.). 9 BAUDOUIN, Jean-Louis and Patrice DESLAURIERS, La reponsabilité civile, 5th ed., Cowansville, Éditions Yvon Blais, 1998, p. 302 (translated from the original French). 10 See in particular Beaudoin v. La Presse Ltée, [1998] R.J.Q. 204 (C.S.). 11 BAUDOUIN, Jean-Louis and Patrice DESLAURIERS, loc. cit., note 12, p.910. 12 See especially, JOBIN-LABERGE, Odette, "La responsabilité civile des avocats pour la diffamation dans les actes de procédure" in Développements récents en droit civil (1992), Cowansville, Éditions Yvon Blais, 1992, p.24. 13 DESLAURIERS, Patrice, "La responsabilité des avocats", in Responsabilité, Collection de droit 1999-2000, Volume 4, Cowansville, Éditions Yvon Blais, p. 99. See also Bélisle-Heurtel v. Tardif, [2000] R.J.Q. 2391 (C.S.) (in appeal). 1 2