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Date: Fri, 3 Nov 2006 11:15:43 +0000

From: Allan Beever

Subject: Defamation and compensation for enrichment

 

In response to Steve's post:

It seems to me that this misses the point that we were trying to make.

As I read Lord Devlin's judgment in Rookes, his claim is that exemplary damages can be used in order to strip the profit made by those in the cases we have been discussing. Though he does imply that this is punitive and defendant focused, there is nothing to suggest that, for instance, he thinks that courts should award more than the profit the defendant received (though he does, quite rightly, insist that profit need not be restricted to financial profit). The point that has been argued by me and others is that a better explanation for these awards is based on restitution or disgorgement than punishment. This is not remote from the actual legal system. It purports to be the best explanation for what the actual legal system does. If our arguments are right, then it is too quick to say that the restitutionary remedy doesn't exist in England. Of course, it doesn't officially exist. But if courts are awarding what they call exemplary damages in a way that can't be explained well by the desire to punish but can be explained well by the desire to realise restitution or disgorgement, then it does exist in reality.

Of course, it might be a mistaken account of what the legal system does. But that is a different argument - indeed the one that others have been engaging in.

And I think it mistaken to suggest that the arguments that have been advanced rely on turning reputation into a property right. The argument is rather that there is a normative structural analogy between the conversion of property and the deliberate tarnishing of someone's reputation. The point of referring to property is to draw attention to this analogy, not to suggest that reputation is property.

 

Best
Allan

 

Hedley, Steve wrote:

What may (or may not) also be confusing Mårten is the variety of different types of answers he has been getting.

Some have actually stated what the law is in their jurisdiction. Ken's first post gave the right answer for English law, and others have filled in some gaps. Pretty clearly, the restitutionary remedy Mårten asks about is not available in England, and no-one else has given a strong reason for supposing that it is available in any other common law country. As Jason has pointed out, while exemplary damages may sometimes be available to reflect a profit made, that's very different from saying that the measure of damages would be the profit (which is clearly not the law).

Others have speculated on whether a remedy for the restitutionary remedy might be justifiable in the future. This branch of the discussion has relied heavily on "corrective justice" (or whatever we want to call it). But such discussions are usually rather remote from any actual legal system, and while that doesn't in itself invalidate them, here it makes them rather problematical:-

1/ Analogies between reputation and property have been relied on. But any actually existing legal system is already going to have pretty firm ideas of what is and isn't property, and arguments which treat this as tabula rasa won't have much traction. Of course reputation can be seen in proprietary terms (most rights can, at a pinch), but why would we want to?

2/ Some say that a restitutionary remedy here would be just. But that question depends entirely on what else the actual legal system in question can do. Take libel. If the choice is between a restitutionary remedy and no remedy at all, then it's easy to say that the restitutionary remedy is just - people who are libelled should have a remedy of some sort. If however the legal system already makes provision for damages, including exemplary damages, it is much less obvious that a restitutionary remedy is called for. The argument whether a restitutionary remedy should be available, or whether the plaintiff deserves the money, cannot be had in the abstract, without asking what the actual legal system would do if that remedy were refused.

--

 

Dr Allan Beever
Reader in Law
Department of Law
50 North Bailey
Durham
DH1 3ET
United Kingdom
FAX : +44 191 334 2801
Internal Telephone: 42816
External Telephone: +44 191 334 2816
http://www.dur.ac.uk/a.d.beever/

 

 


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