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On appeal by the defendants, the Court of Appeal held that the plaintiff could not bring the action for libel. Bognor Regis Urban District Council v Campion [1972] 2 QB 169 overruled. The basis of the decision was the wrong conclusion that a local authority cannot commit those offences. There is no statutory restriction preventing the plaintiff from taking action for libel. An individual councillor or local government officer can bring proceedings in his own name for an attack upon his personal reputation in relation to his official activities. The freedom to express criticism of a governmental body can be more easily stifled by a series of civil actions than by criminal prosecutions: City of Chicago v Tribune Co, 139 N. The mere issue of a writ tends to have a gagging effect; and once proceedings are set down for trial, they become active so that further publications are caught by the strict liability rule: section 2(3) of, and Schedule 1 to, the Contempt of Court Act 1981. The route to reform should be through the law of privilege.

On appeal by the plaintiff:-Held, dismissing the appeal, that since it was of the highest public importance that a democratically elected governmental body should be open to uninhibited public criticism, and since the threat of civil actions for defamation would place an undesirable fetter on the freedom to express such criticism, it would be contrary to the public interest for institutions of central or local government to have any right at common law to maintain an action for damages for defamation; and that, accordingly, the plaintiff was not entitled to bring an action for libel against the defendants, and its statement of claim would be struck out (post, pp. Manchester Corporation v Williams [1891] 1 QB 94, D. Decision of the Court of Appeal [1992] QB 770; [1992] 3 WLR 28; [1992] 3 All ER 65 affirmed on different grounds. This was an appeal, by leave of the Court of Appeal, by the plaintiff, Derbyshire County Council, from the decision of the Court of Appeal (Balcombe, Ralph Gibson and Butler-Sloss L. On the contrary, section 222 of the Local Government Act 1972 confers a wide power on local authorities to institute civil proceedings of all types. It is open to question, however, whether qualified privilege attaches to the publication of fair information on a matter of public interest concerning the manner in which a public officer performs public functions: see Webb v Times Publishing Co Ltd [1960] 2 QB 535 and Blackshaw v Lord [1984] QB 1, in which the Court of Appeal took too narrow a view of the scope of privilege in such circumstances. A civil court can grant prior restraint of publication, and damages are potentially without limit. Their Lordships took time for consideration.18 February 1993.

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JJ.) [1992] QB 770 allowing an appeal by the defendants, Times Newspapers Ltd, Andrew Neil, the editor of "The Sunday Times," and Rosemary Collins and Peter Hounam, two of the newspaper's journalists, from the order of Morland J. In exercising its powers and carrying out its functions as a county council, the plaintiff has a reputation that is distinct from that of its individual members or officers. It is not necessary for the corporation to prove actual damage: South Hetton Coal Co Ltd v North-Eastern News Association Ltd [1894] 1 QB 133. The need for a local authority to be able to sue for libel to protect its reputation is a real and pressing one. The plaintiffs cannot rely on section 222(1) of the Local Government Act 1972, since their proceedings are not capable of promoting or protecting the interests of the inhabitants of Derbyshire generally and they constitute an unnecessary interference with free expression. There is no legal aid and proceedings are notoriously costly. Lord Keith of Kinkel: My Lords, this appeal raises, as a preliminary issue in an action of damages for libel, the question whether a local authority is entitled to maintain an action in libel for words which reflect on it in its governmental and administrative functions.

[1992] QB 770 holding, on a preliminary issue, that the plaintiff could maintain a cause of action in libel against the defendants in respect of articles in issues of "The Sunday Times" dated 17 and 24 September 1989. At common law trading corporations can sue for libel: Metropolitan Saloon Ombibus Co Ltd v Hawkins (1859) 4 H. Non-trading corporations can also sue: National Union of General and Municipal Workers v Gillian [1946] KB 81. Damage to its reputation may make it more difficult for the authority to borrow money or tender for contracts, and may disaffect its staff or deter participation in its pension scheme. The plaintiff does not have to prove his claim beyond reasonable doubt. That is the way the preliminary point of law was expressed in the order of the master, but it has opened out into an investigation of whether a local authority can sue for libel at all.

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