Defamation cases can have a significant impact on a person's ability to work, especially when the defamatory material is published widely and causes reputational damage.
In this blog post, I discuss the issue of economic loss arising from defamation, focusing on the impairment of a person's capacity to work.
I reference the decision in Poniatowska v Channel Seven Sydney Pty Ltd [2020] SASCFC 5, as well as other relevant cases, to provide an understanding of this subject matter.
Economic Loss in Defamation Cases
In defamation cases, economic loss may be claimed by the plaintiff if they can prove that the defamatory material published has caused a negative impact on their capacity to work.
In the case of Poniatowska v Channel Seven Sydney Pty Ltd [2020] SASCFC 5, the plaintiff claimed that the publication of the defamatory material led to a relapse in her psychiatric conditions (depression and anxiety) and caused her incapacity to work. Furthermore, her loss of reputation adversely affected her prospects of obtaining employment.
Causation: Effect of Publication on Capacity to Work
To establish a causal link between the publication of defamatory material and the plaintiff's incapacity to work, expert evidence may be required.
In Poniatowska's case, the expert evidence of Dr. Czechowicz was crucial in proving that the publication had caused a relapse of her psychiatric conditions, which in turn resulted in her incapacity to work.
In some cases, the defamatory material may only be one of several contributing factors to the plaintiff's impaired capacity to work.
In Poniatowska, the court acknowledged that the defamatory publication was one of several factors that contributed to her psychological dysfunction.
Assessment of Damages for Economic Loss
Determining the appropriate amount of damages for economic loss in defamation cases can be challenging.
In some cases, a mathematical approach can be taken by multiplying the value of the lost opportunity by the percentage chance that the opportunity would have materialized. In other cases, a more holistic assessment may be required.
In Poniatowska, the court opted for a broad-axe holistic assessment of the economic loss, considering the adverse circumstances caused by the defamatory publication that impacted her earning capacity. These circumstances included the:
exacerbation of her psychological dysfunction, which affected her job-seeking efforts, motivation; and
capacity to seek employment in various roles.
The court ultimately assessed her economic loss at $80,000.
Key Take-Aways
Economic loss arising from defamation can have a significant impact on a person's capacity to work.
The Poniatowska v Channel Seven Sydney Pty Ltd [2020] SASCFC 5 decision provides valuable insights into how courts assess the causal link between the publication of defamatory material and the plaintiff's incapacity to work, as well as the appropriate damages for economic loss.
When pursuing a defamation claim, it is essential to gather strong evidence to establish causation and to ensure that damages for economic loss are accurately assessed.