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Yin Yoke Main @ Mabel Vs Sabarice Sdn.Bhd., Kwek Kim Kooi [2011] MYSSHC 120 (3 March 2011)

MALAYSIA

IN THE HIGH COURT OF SABAH AND SARAWAK AT TAWAU

SUIT NO. T(22) – 2 OF 2009

BETWEEN

YIN YOKE MAIN @ MABLE ... PLAINTIFF

SABARICE SDN BHD

AND

[COMPANY NO. 658854] ... 1ST DEFENDANT

KWEK KIM KOOI ... 2ND DEFENDANT

BEFORE THE HONORABLE JUDICIAL COMMISSIONER

Y.A. TUAN JOHN KO WAI SENG

IN OPEN COURT

JUDGMENT

.

Pleadings

The plaintiff is suing by a writ and statement of claim dated 10th January 2009 for

libel arising from two newspaper notices published in two newspapers by the

defendants who are her employer and immediate superior respectively and

malicious falsehood on a police report made on 17th March 2008 against the

plaintiff. The defendants plead justification for the libel and qualified privilege to

the plaintiff‟s claims.

.

Facts of the Case

(1)

The plaintiff was employed as marketing executive for the area of Tawau for the

st defendant from 1st September 2007 to 31st March 2008.

(2)

The 2nd defendant was the area manager of the 1st defendant and the superior

officer of the plaintiff.

(3)

On the 4th March 2008 the plaintiff was handed a letter dated 1st March 2008

giving her a one month‟s notice of termination of her employment from the 2nd

defendant (Ex. “ABD-1” at pages 9-10) with her last day of employment as 31st

March 2008.

(4)

The plaintiff ceased to go to work after the 8th March 2008 because according to

the plaintiff to avoid having to face the 1st defendant who fired her and who was

the only other person in her office.

(5)

On 17th March 2008 the 1st defendant lodged a police report (the “police report”)

on behalf of the 2nd defendant against the plaintiff (Ex. “ABP-1” at page 7)

alleging the following (translated from Bahasa Malaysia) :

“A worker i.e. Mabel Yin Yoke Main I.C. No. 691024-01-6142, based on a

mutual understanding, her service was terminated because her behavior and

character which is not acceptable by the company. While she was in the

company, she has misused her power by directing and instructing a media

company to print pamphlets for a politic party campaign purposes. This act

of her clearly shows a contravention with the company‟s rules and

regulations which the company is not involved with such activities.”

(6)

On the 19th March 2008 the defendants caused two kinds of notices to be

published in two newspapers concerning the plaintiff (Ex. “ABP-1” at pages 8 to

) as follows:

(a) The Borneo Post edition of 19th March 2008 at page 15:

1 (i) Notice of departure (“1st Notice”) :

Located on the top left of the page with the total size of 13 cm wide

and 15.9 cm height (see Ex. “ABP-1” at page 8) worded in English

and Malay respectively to the following effect :-

NOTICE

This is to inform our valued customers, that Ms Mabel Yin Yoke Main I/C

7 No. 691024-01-6142, has left the company on the 8th March 2008. Since

then, SABARICE SDN BHD has no connection and has nothing to do with

whatever things she may undertakes. Related suppliers and agencies are

hereby requested to contact us for any enquiries regarding the above. Any

promises or contract of business dealt by her on behalf of this company to

related suppliers/agencies, are hereby requested to consult us for

clarification. We apologise for any troubles caused.

Contact Person : Kevin Kwek – 012 5120 859”

(*Note: Only the words italised and underlined above are complained of by

the plaintiff as defamatory of her.)

17 (ii) Notice for return company documents (“2nd Notice”):

Located on the top right of the page with the total size of 13 cm wide x

15.9 cm height (see Ex. “ABP-1” at page 8) worded in English and

Malay respectively to the following effect :-

NOTICE

To: Ms YIN YOKE MAIN @ MABEL

(I/C No: 691024-01-6142)

You are requested to return whatever documents which carry the letter

head & logo of company (Sabarice Sdn Bhd) that belong to the

1 company within SEVEN (7) working days of this notice. You are reminded

that you shall be are responsible to whatever action that you have taken.

Thank You.

SABARICE SDN BHD,-TAWAU BRANCH

Contact Person -089-713055 (Hjh Fatimah)

6 (b) Morning Post edition of 19th March 2008 at page 5:

(i) Notice of departure :

Located on the bottom of the page on the left of the Notice for return of

documents with the size of 13.4 cm width and 21.6 cm height (see Ex.

10 “ABP1” at page 9) same wording as the 1st Notice in the Borneo Post

(Ex. “ABP1” at page 8) and worded in Chinese, English and Malay

respectively.

(ii) Notice for return company documents :

Located on the bottom right of the page with the size of 13.4 cm width

and 21.6 cm height (see Ex. “ABP1” at page 9) same wording as the

16 2nd Notice in Borneo Post (Ex. “ABP1” at page 8) and worded in

Chinese, English and Malay respectively.

18 (7) After a complaint to the Industrial Relations Department the 2nd defendant
19 pursuant to the memorandum of agreement dated 28th October 2008 settled by

the Industrial Relations Department agreed to pay the plaintiff RM7,600.00

(RM1,900.00 x 4 months) (Ex. “ABP-1” at page 10). By paragraph 2 it states

specifically that the parties shall have no further claim against each other in

regard to the termination of employment.

.

P la intiff’s 3 Cla ims

(1)

st Notice: Notice of departure

(a) Was the plaintiff‟s termination of service lawful?

By paragraph 4 of the statement of claim, the plaintiff contends that her

3 termination of employment by the 1st defendant is unlawful. By paragraph 4 of the
4 defence, the 1st defendant contends that the plaintiff had been lawfully terminated
5 by the letter dated 1st March 2008 giving her 1 month‟s notice of termination of
6 her employment (Ex. “ABP-1” at pages 5-6) (1st defendant‟s termination notice”).
7 It has been established by the evidence of the 2nd Defendant (DW1) that he only
8 handed the 1st defendant‟s termination notice to the Plaintiff on the 4th March

2008 after he received it from his CEO (Lines 576 to 582 Notes of Proceedings

10 (“NOP”)). Since the one month‟s notice is to start from the 1st March 2008 and
11 ends on 31st March 2008 (see paragraph 4 of Ex. “ABP-1” at pages 5-6) there

has been inadequate termination by notice of 30 days by the late handing over of

13 the notice to the plaintiff on 4th March 2008 for commencement of the notice on
14 the 1st of March 2008. Contrary to the allegation in paragraph 4 (ii) of the Defence

that the plaintiff had failed to serve the 1 month‟s notice through the 2nd

defendant‟s statement that the defendant was the party “in breach” for failing to

17 turn up for work for two consecutive days according to the 1st defendant‟s rules

and regulation (Ex D1: at Paragraph 20A), the plaintiff was within her rights not to

serve out the notice by the defendant‟s wrongful termination by inadequate notice

and to lodge a complaint to the Industrial Relations Department for her wrongful

21 dismissal by the 1st defendant. The compensation was rightfully given to her

(through Ex. “ABP-1” at page 10) for breach under the circumstance and not ex-

gratia as contended by the defendants in paragraph 4 of the defence and this

“righteousness” unfortunately had set the tone of the defence in this matter and

its conduct.

26 (b) Was the 1st Notice justified and justifiable?
27 On the facts before the Court, the 1st Notice was therefore published by the
28 defendants to say that the plaintiff “has left the company on the 8th March 2008”

which though factually true, is not the legally true situation when in fact there was

wrongful termination or constructive dismissal of the defendants to excuse her for

not reporting to work to serve out the rest of the notice prescribed by the 1st

defendant.

For such breach of the length of notice resulting in wrongful termination, the 1st

defendant has compensated the plaintiff for their breach as mediated by the

agreement before the Industrial Relations Department (Ex. “ABP-1” at page 10).

However be that as it may and in retrospect, having compensated the plaintiff for

9 the wrongful termination of service, the 1st defendant can now legitimately be said

to be permitted and to justified to disclose factually and is justified in doing so to

11 say that the plaintiff had “left the company on the 8th March 2002”, after she failed

to turn up to work which is the actual state of affairs subsisting. Both parties had

by their conduct treated the other party as wanting the relationship of

14 employee/employer to end on the 8th March 2008, which is distinct and separate

from the other issue of legality of the termination of employment.

16 The other two aspects of the 1st Notice in essence is to give notification as to the
17 1st defendant‟s disclaimer for responsibilities for the plaintiff‟s acts thereafter and
18 who to contact for information on the 1st defendant‟s current matters previously

dealt by her. These are the reasons that had led to the publication of the 1st

Notice.

The Court accepts by the prevalent notices of this nature being published in the

newspapers that it is normal commercial practice for an employer to publish a

notice to (i) notify customers, suppliers, agencies and the public generally that an

employee had left the company and to announce the cesser of employment

relationship between them for terminating the authority to further transact; and (ii)

identifying a company personnel to contact for more information.

27 Nevertheless, the plaintiff contends that the 1st Notice was understood in their

natural and ordinary words to mean that the plaintiff was a dishonorable,

dishonest and untrustworthy person and according to paragraph 7 of the

statement of claim had the following innuendoes or hidden meaning:-

“(a) That the plaintiff may have some dishonorable undertaking which the 1st

defendant would like to disassociate.

(b) That the plaintiff would fraudulently and/or dishonestly make promises or

contracts of business under the disguise of an employee/agent of the 1st

defendant despite the cessation of her employment.

(c) That the plaintiff was an untrustworthy person, against whose

9 commercial conduct or business dealings the 1st and 2nd defendants

would be willing offer clarification.”

11 The 1st Notice though poorly worded (e.g. “has no connection and has nothing to

do with whatever things she may undertakes”), as correctly pointed out by

learned counsel for the defendants must first be read as objectively as a whole

and not truncated as set out in paragraph 6 of the statement of claim. (See JB

Jeyaretnam v Goh Chok Tong (1984) 1 LNS 139: where the words must be

considered in the context of the whole speech made by the defendant and in

those circumstances. This whole article concept was accepted by K Nathan J. in

18 Ratus Mesra Sdn. Bhd. v Sheik Osman Majid (1999) 8 CLJ 449.)

In Le Mercier’s Fine Furnishings Pte Ltd v Italcomm (Malaysia) Sdn Bhd (1996) 3

CLJ 590 James Foong J. (as he then was) at 593 (f) stated:

“To determine the cause of action based on whether by the natural and

ordinary meaning of the said statement is defamatory, this Court must first find

out what is the natural and ordinary meaning of the said statement, i.e. its

literal and inferential form would convey to an ordinary person.”

James Foong J. further stated at 593 (i) (ibid) with approval:

“It is also necessary to stress that in considering this issue on the meaning, the

“Court must not put a strained or unlikely construction upon the words, if they

are capable of bearing a number of good interpretation, it is unreasonable to

seize upon one bad one to give the word a defamatory sense” Capital

Countries Bank v Henty [1880] CPD 514.”

4 Likewise, the 1st Notice contains the normal acceptable information which in its

natural and ordinary meaning to any ordinary person (see definition of Lord Reid

6 in Lewis v Daily Telegraph (1964) AC 234 at 258) is in essence to notify the 1st

defendant‟s customers and suppliers and the public generally in regards to the

termination of the plaintiff‟s employment and the follow-up from it. It may be

9 possible to read the innuendoes pleaded by the plaintiff into the 1st Notice but
10 following Le Mercier’s case (supra), in the context and purpose the 1st Notice was

published we should not interpret and seize upon the derogatory meaning alone

when it can have a more acceptable and intended non derogatory interpretation.

13 The 1st Notice is justified on the facts as stated before and is justifiable as it does

not exceed the bounds of propriety even though poorly phrased and the Court

will find that it does not nor should it be construed in its natural and ordinary

meaning or to have the innuendoes raised in paragraph 7 (a), (b) and (c) of the

statement of claim as contended for by the plaintiff as to make it defamatory of

the plaintiff. To hold otherwise would mean that nobody can ever publish a

legitimate notice to notify the public at large of staff changes and the follow-up

from such event without being faced with an action for defamation based on the

inference from the false innuendoes as pleaded by the plaintiff to all such

legitimate notices of employment termination.

(c) Qualified Privilege

The defendants also raise the defence of qualified privilege for publication of the

25 1st Notice. On this in the case of Toogood v Spyring (1834) 1 CM & R 181 Parke

B stated :

“In general, an action lies for the malicious publication of statements which

are false in fact, and injurious to the character of another, and the law

consider such publication as malicious, unless it is fairly made by a

person in the charge of some public or private duty whether legal or

moral, or in the conduct of his own affairs, in matters where his

interest is concerned. In such cases the occasion prevents the inference

of malice which the law draws from unauthorized communication, and

affords a qualified defence depending on the absence of actual malice. If

fairly warranted by any reasonable occasion or exigency, and honestly

made, such communication are protected for the common

convenience and welfare of society.

(emphasis added)

Since it is normal commercial practice for an employer to publish a notice similar

12 in content to the 1st Notice on an employee ceasing his employment, the Court
13 will also find that the 1st Notice served a legitimate purpose of the 1st defendant to

inform customers, suppliers and the public who all share a corresponding

legitimate common interest to know of the status of the plaintiff as an employee

16 of the 1st defendant and the transitional follow-up measures. Therefore even if in

its natural and ordinary meaning or the innuendoes as contended for by the

plaintiff as defamatory were made out, the Court will hold that qualified privilege

19 will attach to this 1st Notice published under such circumstances as a defence for

the defendants.

On this common interest and rebuttal thereof by malice, Chang Ming Tat FJ in

John Lee and Anor v Henry Wong Jan Fook (1981) 1 MLJ 108 at page 110 (F)

observed :

“But if it is an occasion of qualified privilege, then the concern of the court

hearing the defamation action is to decide whether there was a common

interest in the party making the defamatory communication and in the

party receiving it. This statement of the law on qualified privilege is taken

28 from Adam v. Ward.(1) It was cited by the learned trial judge himself. Per

Lord Finlay L.C. at page 318 and page 162 respectively:

“The law of privilege is well settled. Malice is a necessary element

in an action for libel, but from the mere publication of defamatory

matter malice is implied, unless the publication were on what is

called a privilege occasion. If the communication were made in

pursuance of a duty or on a matter in which there was a common

interest in the party making and the party receiving it, the occasion

is said to be privileged. This privilege is only qualified, and may be

rebutted by proof of express malice. It is for the judge, and the

judge alone, to determine as a matter of law whether the occasion

is privileged, unless the circumstance attending it are in dispute, in

which case the facts necessary to raise the question of law should

be found by the jury.”

(Emphasis added)

No reply has been filed in Court by the plaintiff giving particulars of express

malice for the purpose of rebutting the defence of qualified privilege of the

defendants as required by Order 78 rule 3 (3) of the RHC 1980. (see Anne Lim

Keng See v The New Straits Times Press (M) Bhd and the Malay Mail (2008) 6

CLJ 679). On such failure, the plaintiff cannot therefore raise any issue of malice

and this is not an issue before the Court.

The Court will also note that the express malice pleaded in paragraph 18 of the

statement of claim seems to relate to the malicious falsehood claim (preceding

24 paragraphs 14 to 17) and not for the publication of the 1st Notice. In any event the

malice pleaded has no material bearing on rebutting the qualified privilege

26 attaching to the 1st Notice.

28 The Court will find that the publication of the 1st Notice by the defendants is
29 protected by qualified privilege as it is a statement made by the 1st defendant on

a matter which it has a legitimate interest to impart to their customers, suppliers

and the public at large and these recipients also share a corresponding common

interest to know about the status of the plaintiff‟s employment with the 1st

defendant and on follow-up dealings consequent to her employment termination.

The qualified privilege defence for the 1st Notice succeeds.

(d) Size of 1st Notice

The other contention is the use of the advertisement to embarrass the plaintiff

(see paragraph 20 (a) and (c) of the statement of claim) by negative perception

from the publication viz. was such a large advertisement of the 1st Notice really

necessary? The Court will observe that the size of the publication does appear to

exceed normal commercial practices when it is compared to the everyday

publication of similar notices we see in the newspapers. Does that render its

publication defamatory? The Court will find notwithstanding the plaintiff‟s

contention that though the publication of 1st Notice is by its size out of the

ordinary and meant to embarrass her but nevertheless this does not by itself

without more render the 1st Notice the contents of which have been found to be

not defamatory to become defamatory.

(e) Conclusion on 1st Notice

The Court will find that publication of the same 1st Notices in the two newspapers

viz. Borneo Post (2 languages) and the Morning Post (3 languages) by the

defendants is justifiable and its contents are justified under the circumstances as

to render it not defamatory per se of the plaintiff and further that the 1st Notice

was published on an occasion where qualified privilege attaches.

(2)

nd Notice: Notice for return company documents

(a) Purpose of this 2nd Notice

The defendants in paragraph 4 (iii) of the defence puts up the reason for the

publication of the 2nd Notice for the plaintiff “to return whatsoever documents

which carry the letter head & logo of company (Sabarice Sdn Bhd) that belong to

the company”:

“(iii) Subsequent to the Plaintiff‟s sudden cessation of service with the 1st

4 Defendant, the 1st Defendant had on several occasion requested the
5 Plaintiff to return all documents which carry the 1st Defendant‟s letter head

and logo. However, until to-date the Plaintiff has failed, refused and/or

neglected to do so;”

In the Submission of learned counsel for the defendants she had stated (Enc 59

at page 7) in her Background Facts:

10 “5. On the 8th March 2008, the plaintiff had ceased to return to work and left
11 the 1st Defendant‟s company without completing the 1 month notice.

Further the plaintiff had taken away documents or files and deleted data

13 files or documents from a lap top belonging to the 1st Defendant.”

The defendants use this allegation to support their defence of justification and

15 qualified privilege for the publication of the 2nd Notice. By paragraph 15 of the
16 defence, the 2nd defendant denies liability not being the author or publisher of the
17 2nd Notice.
18 (b) How is the 2nd Notice defamatory to the plaintiff

The plaintiff has denied in paragraph 20 (b) of the statement of claim supported

by paragraph 19A of her witness statement that she did not take any letterhead

21 or document of the 1st defendant (at page 6 of Ex P1). In her cross examination

at lines 183 to 207 NOP she had consistently denied that she deleted the files

23 from her laptop computer of the 1st defendant used by her or took away the hard

copies of documents of the deleted files.

25 The 2nd Notice according to the plaintiff is defamatory because it was understood

in their natural and ordinary words to mean that the plaintiff was a dishonorable,

dishonest and untrustworthy person and according to paragraph 7 of the

statement of claim to have the following innuendoes which are exacerbated by

1 the innuendoes from the 1st Notice (paragraph 7 (a) to (c) of Statement of

Claim):-

“e. That the plaintiff was troublemaking employee who had wrongfully taken

4 and retained the letterhead and company logo of the 1st defendant for

personal gain or self-serving reason.

f. That the plaintiff was a stubborn person who refused to return the

7 requested items despite repeated demands by the 1st and 2nd

defendants, thus justifying the latter to cause the publication as they did.

g. That the plaintiff took and/or would continue to take irresponsible action

10 for which the 1st and 2nd defendants shall hold her responsible that the

plaintiff was a stubborn person who refused to return the requested items

12 despite repeated demands by the 1st and 2nd defendants, thus justifying

the latter to cause the publication as they did.”

In paragraph 20 of the statement of claim she considers the publication wholly

unnecessary and intended solely to embarrass her name and creditworthiness.

It must be noted that the plaintiff had relied on the English versions of the Notices

as the basis of her action (paragraphs 6 and 11 of the Statement of Claim) and

treats in paragraphs 5 and 10 of the Statement of Claim that the Malay version

and the Malay/Chinese versions of the Notices in the Borneo Post and the

Morning Post respectively have the same meaning as the English version. The

defendants have not given any evidence that the non-English versions in the

Notices convey a different interpretation or meaning from that of the English

versions set out in paragraph 6 of the Statement of Claim.

24 (c) Is the 2nd Notice defamatory?
25 In the case of Le Mercier’s case (supra) it was held that the defendants‟

advertisement proclaiming “is the only genuine Italian display centre in Kuala

Lumpur” was defamatory as meaning that the plaintiffs who are also dealers of

genuine Italian made furniture were in the eyes of the ordinary person dishonest

or otherwise engaged in selling fake and imitation goods. In arriving at that

conclusion James Foong J. (as he then was) stated at page 593 g that:

“To determine the cause of action based on whether by the natural and

ordinary meaning of the said statement is defamatory, this Court must first

find out what is the natural and ordinary meaning of the said statement, i.e. its

literal and inferential form would convey to an ordinary person. The “ordinary

person” as elaborated by Lord Reid in Lewis v Daily Telegraph (1964) AC 234

@ 258 and accepted by our Malaysian Courts is, a person, “who does not live

in an ivory tower and he is not inhibited by the knowledge of the rules of

construction so that he does read between the lines in the light of his general

knowledge and experiences of worldly affairs.”

13 The 2nd Notice would be defamatory of the plaintiff according to Lord Atkin in Sim

v Stretch [1936] 2 All ER 952, if :

“……the words were calculated to expose him to hatred ridicule or contempt

in the mind of a reasonable man or would tend to lower the plaintiff in the

estimation of right-thinking members of society generally.”

In Tun Datuk Patinggi Haji Abdul-Rahman Ya'kub v. Bre Sdn Bhd & Ors, (1995) 1

LNS 304, Richard Malanjum J (as he then was) adopted this similar approach:

“Thus the test of defamatory nature of a statement is its tendency to excite

against the plaintiff the adverse opinion of others, although no one believes

the statement to be true. Another test is: would the words tend to lower the

plaintiff in the estimation of right-thinking members of society generally? The

typical type of defamation is an attack upon the moral character of the plaintiff

attributing crime, dishonesty, untruthfulness, ingratitude or cruelty.

Words could still be defamatory even if they did not really lower a plaintiff in

the estimation of those to whom they were published. The law looks only to its

tendency”

4 The Court finds that the 2nd Notice addressed to the plaintiff has all the features

enunciated in the above cited case and is defamatory of the plaintiff as

contended by the plaintiff. The defendants by publicly asking for the return of the

documents within 7 days from the plaintiff in their natural and ordinary meaning

to an ordinary person is accusing the plaintiff as having unlawfully taken away or

9 stolen documents of the 1st defendant. The 2nd Notice in the mind of a

reasonable man has the tendency to subject the plaintiff to hatred ridicule and

contempt by implying improper and dishonest behavior lacking in integrity upon

12 the plaintiff in taking away or stealing the 1st defendant‟s property and which

would lower the plaintiff in the estimation of right-thinking members of society

generally by labeling her as a dishonourable, dishonest or untrustworthy person

or a thief.

The aforesaid observation on the inferment of the ordinary person made by Lord

Reid in the Lewis case (supra) was cited in AJA Peter v. OG Nio & Ors. (1979) 1

18 LNS 1; (1980) 1 MLJ 226 and used for identification of the plaintiff as being

defamed whereby Abdul Hamid J. (as he then was) gave judgment in favour of

the plaintiff and in doing so said at p. 233:

“In the light of these principles of law, it is pertinent to consider a

publication in the context in which the words are used and the mode of

publication, for example, the prominence given to the heading employed

and the nature of the publication, for example, the emphasis placed

upon certain words used. They are important considerations because they

tend to induce an ordinary man to infer from the words complained of the

meaning meant to be understood.”

(Emphasis added).

1 Based on the above principles in AJA Peter’s case (supra), the 2nd Notice in the

words and emphasis made therein: “You are requested to return whatever

documents which carry the letter head & logo of company (Sabarice Sdn Bhd)

4 that belong to the company within SEVEN (7) working days of this notice” can

also be found to bear all the inferment or false innuendoes as contended by the

plaintiff in particular under paragraph 7 (e) to (g) of the statement of claim.

Under paragraph 7 (e) of the statement of claim, the plaintiff is being held out by

9 the 2nd Notice as having taken the documents of 1st defendant without permission

or unlawfully or in short implying her lack of probity by their taking and retention.

Under paragraph 7 (e) and (g) of the statement of claim, that the plaintiff will use

13 the misappropriated 1st defendant‟s letter heads and logo to do unauthorized

transactions.

16 Under paragraph 7 (f) and (g) of the statement of claim, the 1st defendant had to
17 resort to publication of the 2nd Notice because despite the 1st defendant‟s

demands made to her she has failed to return what is not hers.

Another false innuendo that can be inferred further from paragraph (g) of the

21 statement of claim in relation to the last sentence of the 2nd Notice when read
22 together with the 1st Notice is the accusation leveled at the plaintiff of being

capable of acting irresponsibly to continue acting on behalf or using the 1st

24 defendant name even though her employment with the 1st defendant has ceased.
25 Noting that a similar warning has already been made in the 1st Notice
26 disassociating with the plaintiff by the 1st defendant statement that it: “has no

connection and has nothing to do with whatever things she may undertake”.

From the two Notices the Court can also find that this further exacerbation by the

30 2nd Notice being published besides the 1st Notice gives the added wrong

impression to an ordinary person that because of her acts of taking the

2 documents as alleged by the 2nd Notice that the plaintiff has been expressly or
3 impliedly dismissed by the 1st defendant from her employment for cause rather
4 than terminated by notice as intended by the 1st Notice. This is a “false” innuendo

(that arise from looking at or inferring from the offending statement without

assistance of extrinsic evidence) and which need not be expressly pleaded with

particulars like a “true” innuendo (a statement with a secondary meaning) that

has to be specifically pleaded and proved at trial by extrinsic evidence.

According to Varghese George JC in the case of Yuvarani w/o Ravindra v

Percetakan Kum Sdn. Bhd. & 2 Ors (And Another Suit) (2010) 6 AMR 168 at

page 180 line 7 where he stated that:

“This type of innuendo has been described by the law books as a “false

innuendo” and it arise from the alleged offending statements or could arise

from even a combination of statements and pictures (CS Wu v Wang Look

Fung & Ors (1981) 1 MLJ 178). A “false” innuendo should be contrasted with

or distinguished from a “true” or “legal” innuendo that is a statement with a

secondary meaning. It is only in the latter case of a “true” innuendo/secondary

meaning that they have to be specifically pleaded and proved at the trial by

extrinsic evidence. (From Mohamed Azmi J. in Syed Husin AH v Sharikat

Penchetakan Utusan Melayu Berhad & Anor. (1985) 2 MLJ 275.)”

21 In the case of CS Wu v Wang Look Fung & Ors (1981) 1 MLJ 178, the plaintiff

had complained that the juxtapositioning of his photograph with his name “Mr.

Wu” immediately under the headlines: “Big Probe on Lawyers” was defamatory of

him and the defendants had conceded they had libeled the plaintiff.

25 Similarly the Court will find that the juxtapositioning of the 1st Notice by itself like
26 the photograph in CS Wu’s case (supra) which is innocuous results in a “false

innuendo” when read in conjunction with a libelous heading or another libellous

28 material like the 2nd Notice beside it. The resulting express or implied “false

innuendo” created as implied from paragraph 6 of the statement of claim is that

2 any ordinary person reading the 1st and 2nd Notices together will conclude that

the plaintiff had been dismissed from employment by her taking away of the

4 documents of the 1st defendant when in fact her services were terminated by a
5 one month‟s notice. The effect of publishing the 1st and 2nd Notices together as

put in paragraphs 5 to 13 of the statement of claim in its natural and ordinary

meaning which are its literal and inferential meaning is to disparage the plaintiff

as a dishonourable, dishonest and untrustworthy person who had been

9 dismissed from her employment with the 1st defendant.
10 However the Court will find that the defamatory 2nd Notice positioned besides the
11 non-defamatory 1st Notice will not based on what has been found on the 1st

Notice earlier, help establish the innuendoes as pleaded for by the plaintiff in

13 paragraphs 7 (a) to (c) of the statement of claim as to make the 1st Notice
14 libelous of the plaintiff because of the 2nd Notice. The 1st Notice also remains

subject to the defence of qualified privilege. The libel if any through the

16 positioning of the Notices is created by the 2nd Notice and remains in the 2nd
17 Notice. Like the photograph in CS Wu’s case (supra), the 1st Notice per se

similarly does not defame the plaintiff and remains neutral though it is being used

to support another finding of further defamatory material against the defendant

20 from another source to support and aggravate the libel created by the 2nd Notice.
21 Having ascertained that the 2nd Notice is defamatory of the plaintiff in law and
22 fact, and causing another libel read with the 1st Notice of express or implied

dismissal of the plaintiff we now consider the defendants‟ defences.

24 (d) Justification of the 2nd Notice

(i) Did the plaintiff without permission or wrongfully take and retain the

26 letterhead and company logo of the 1st defendant?

From the evidence adduced at the trial by the defendants, there are only

28 two letters with the 1st defendant‟s letterhead and logo produced at the trial

originating from the defendant admitted to be with the plaintiff namely, the

2 plaintiff‟s letter of appointment dated 4th September 2007 from the 1st
3 defendant (Ex. “ABD-1” at pages 3 – 8) and the 1st defendant‟s letter of

termination (Ex. “ABD-1” at pages 9 - 10) which are documents the Court

would find and hold that the plaintiff is legitimately entitled to retain and not

6 subject to recall by the 1st defendant.
7 The blanket wording of the 2nd Notice: “whatsoever documents which carry

the letterhead & logo of company (Sabarice Sdn Bhd) that belong to the

company”, renders even mere possession of legitimate correspondence or

10 even documents from the 1st defendant to her as being a subject matter for
11 the return by the 2nd Notice i.e. having emanated from the 1st defendant to
12 an employee would still belong to the 1st defendant. The 1st defendant in law

and in fact had not adduced any evidence for their basis in making such a

14 blanket demand. This renders the 2nd Notice defamatory of the plaintiff from

its natural and ordinary meaning in that she has wrongfully retained all

correspondence and documents addressed to her or given to her from the

17 1st defendant.

The only other allegation made against the plaintiff by the defendants is

19 through the 2nd defendant‟s witness statement in Ex “D1” paragraph 21A:

“We also further discovered that the plaintiff had deleted all the data or

documents filed in a laptop computer used by her during her employment

and also the hard copies of the documents in the office files. These are

private and confidential documents or files as they consist of the

company‟s proposed ideas for projects to promote and advertise the

company‟s products. If disclosed and fallen on the wrong hands of our

business competitors they can be used by them for their promotion and

advertising of their products and it may jeopardize the plan and the

interest of company.”

1 Later on at Ex “D1” paragraph 22A the 2nd defendant had added:

“We tried to contact her by telephone but could not get hold of her, so the

company‟s CEO, Mr. Tan instructed me to lodge the police report on

17.03.2008. Then our Human Resource & Administration department

instructed us to put up two (2) notices in the newspaper on

19.03.2008…”

When we read the police report (Ex. “ABD-1” at page 41) lodged by the 1st

defendant the Court finds that the defendants were only complaining that

the plaintiff had:

“misused her power by directing and instructing a media company to print

pamphlets for a politic party campaign purposes. This act of her clearly

shows a contradiction with the company‟s rules and regulations which the

company is not involved with such activities.”

There was no complaint lodged on the deletion of files in her laptop

computer or the unauthorized taking away of the hard copies of the deleted

“private and confidential” documents by the plaintiff. The Court notes that

these deleted files in the plaintiff‟s laptop computer belonging to the 1st

defendant comprised in Ex. “ABD1” at pages 64 - 197 were subsequently

retrieved by a computer technician.

In cross-examination by learned counsel for the plaintiff on this aspect, the

21 2nd defendant had not shown himself to be a reliable witness:

Backup copies

23 At line 647 of the NOP the 2nd defendant said:

“All these documents were kept by Mabel in her laptop, there were no

backup copy”

At line 654 of NOP when put that he had lied that there was no back up

copy:

“No I do not agree. My backup copies have been taken away”

In re-examination on this he said (at line 734 NOP):

“Because these documents are proposals which were planned at the

beginning of the year and not been submitted and that is why there were

no other copies except those stored in the laptop and hard files.”

8 The 1st defendant had first denied having any back up copy and in the next

breath said it was taken away. Lastly tries to explain this discrepancy by

saying that it was only at proposal stage hence no back up. The Court finds

it hard to believe that if this a major project for an important customer as the

defendants make it up to be, that there was no back up copy made or that

13 the 2nd defendant being in charge would not have hard copies to look at in

respect of consultations and to monitor the progress of the development of

such an important project paper by his subordinate, the plaintiff.

Police Report

At lines 686 – 688 NOP:

PC: Refer to the police report at Exh. ABP-1, did you mention anything

about Mabel Yin deleting or stealing company documents? Do you

agree?

DW1: Yes

22 The 1st defendant appears to confirm that he had lodged a report on the

deletion and taking documents away when in fact the police report is only

limited to abuse of power as elaborated before. In his re-examination, at

25 lines 751 – 752 NOP, the 2nd defendant tries to justify the omission by

saying that the police report was not drafted by him but by Human

1 Resources Department. As the Area Manager of the 1st defendant and its

key staff in Sabah, he could have supplemented or made a report himself if

3 he believed as he reported to the 1st defendant that the plaintiff had taken

documents.

5 This is also highlights the inconsistency of the 1st defendant because as
6 stated by the 2nd defendant in his witness statement Ex “D1” at paragraph
7 22A, that the 1st defendant had considered it so important as to cause the
8 immediate publication of the 2nd Notice for their return. The Court finds it

strange that the police report did not include the loss of the documents if it

10 was of such importance to necessitate the publication of the 2nd Notice.
11 unless that the 1st defendant itself and the 2nd defendant were in doubt that

anything was taken away by the plaintiff.

The Court notes that there is no evidence adduced by the defendants that

the plaintiff had made use of or disclosed the “private and confidential”

documents that she was to have taken away with her for any purpose or to

advance her future career.

Who should the Court believe, the plaintiff or the defendants on whether the

deletion and the missing documents was the act of the plaintiff.

Based on the foregoing and the apparent animosity as observed by the

20 Court between the plaintiff and the 2nd defendant and further evinced from
21 their respective evidence, in the face of the unreliability of the 2nd defendant
22 as a witness and inconsistency of the 1st defendant, the Court would believe

on a balance of probability that the plaintiff was not the cause of the deletion

or the missing hard copies of the deleted documents. The evidence shows

that access to her laptop computer was open to everyone it being not

password locked and so was her office. There is no evidence from the

defendants that they had difficulty having access to both after she abruptly

28 left office on the 8th March 2008 and as such anything could have happened

in her office after she left. Nobody saw the plaintiff take away the hard

2 copies of the documents from the 1st defendant‟s premises or deletion of the

files from her laptop computer.

The Court will find that there is no evidence at all to show that the plaintiff

5 had taken away from the 1st defendant “whatsoever documents which carry

the letter head & logo of company (Sabarice Sdn Bhd) that belong to the

company” that she should not have taken. Nor did she misuse any

8 documents of the 1st defendant that are rightfully in her possession.

(ii) What attempts to retrieve “whatsoever documents which carry the letter

head & logo of company (Sabarice Sdn Bhd) that belong to the company”

The plaintiff by paragraphs 22A and 23A of her witness statement (at page

8 of Ex “P1”) stated that no attempt was ever made to contact her by the

13 defendants regarding the matters raised in the 2nd Notice.
14 The 2nd defendant (DW1) confirmed that he did not call her (from lines 586

to 603 of NOP) nor make any other efforts to contact her :

PC: You said in the answer to Q. 21 of Enclosure 49 that you were

unable to contact her. What did you to try to contact her?

DW1: No, my staff named Sharrida tried to contact her by her hand

phone.

PC: Refer you to page 42 of Exhibit “ABD-1”. Did your company

keep record of the residential address of Mabel Yin?

DW1: Yes. We did.

PC: Did your company keep record of the house telephone number

of 089-777920 of Mabel Yin?

DW1: Yes.

PC: How far is your house from her house?

DW1: Maybe 3 minutes‟ drive.

PC: If Mabel Yin has the company‟s documents, you could have

contacted her by sending someone or yourself to her house in

Taman Kuhara Indah, Jalan Kuhara, Tawau?

DW1: Yes.

PC: And you did not sent someone or yourself to her house to

demand for the documents

DW1: I did not.

PC: Did you send any letter to Mabel, by courier or registered post

or by a staff, to demand for documents from Mabel Yin.

DW1: No.

According to DW4 Shariedah, she and Hajjah Fatimah had attempted to call

her but they apparently failed to contact the plaintiff. Other than that nothing

else was done to contact the plaintiff and resort was had to publish the 2nd

Notice immediately.

This is a totally different picture from what is depicted in paragraph 4 (iii) of

18 the defence which stated that the 1st defendant:

“had on several occasion requested the Plaintiff to return all documents

20 which carry the 1st Defendant‟s letter head and logo.”
21 This pleading wrongly conveys the impression that the 1st defendant had

managed to contact the plaintiff requested her but she still refused to return

the documents.

The Court will also find that the failure to resort to other measures available

like sending a letter or personally contacting her at her house on the return

of documents reflects on the defendants as having an ulterior motive in the

2 manner that they have resorted to publication of the 2nd Notice in
3 conjunction with the 1st Notice.

(iii) Defence of Justification

In order for the defence of justification to succeed the defendant has to

prove that (i) the defamatory imputation is true; (ii) justify the precise

imputation complained of; (iii) prove the truth of all material statements in

8 the libel. (See further Gatley on Libel and Slander, 11th edn. at p. 1002 para

29.5 and also S. Pakianathan v. Jenni Ibrahim & Another Case [1988] 1

10 CLJ 233 (Rep); [1988] 1 CLJ 771.)

11 The Court has found that the 2nd Notice is defamatory of the plaintiff and the

evidence and findings show that she has not taken the hard copies of the

13 deleted documents and the 1st defendant had failed to justify the natural and
14 ordinary meaning of the words nor the imputations of the 2nd Notice and the

truth of their assertion for the plaintiff to return the documents or that she

has misused them or intends to.

17 When we consider the evidence of the 2nd defendant DW1 and the

allegation in paragraph 4 (iii) of the defence the Court senses by looking at

19 the size of and the positioning of the 1st and 2nd Notices being published that

there was an ulterior agenda to it other than for the actual purpose of

notifying the plaintiff. It was in the mind of the person who instigated the

22 administration of the 1st defendant in Kuala Lumpur to publish the 1st and 2nd

Notices and the way it was done in Sabah to disparage the plaintiff and to

lower her in the estimation of right-thinking members of society generally.

The Court does accept that it is normal everyday practice by the prevalent

notices being published in the newspapers for a party (even the police)

seeking to contact a missing party or for another party‟s assistance to

request the intended recipient to contact the seeker through the provided

contact numbers without descending into the full particulars of the subject

matter or reason for the need to contact the recipient which can be read by

the ordinary person as an accusation and defamatory of the intended

recipient.

In respect of the defendants‟ publication by identifying the subject matter of

the advertisement for the “return whatsoever documents which carry the

letter head & logo of company (Sabarice Sdn Bhd) that belong to the

8 company within SEVEN (7) working days” which has been found to be
9 untrue and defamatory, in the publication of the 2nd Notice, the 1st defendant

had gone beyond such normal “contact” or call for “assistance” notices. In

11 addition the sizes of the 1st and 2nd Notices published transcends beyond

the size of a normal publication of such nature that we commonly read in the

newspapers every day.

14 According to the evidence adduced, the 2nd Notice was published after the
15 2nd defendant had lodged on behalf of the 1st defendant the police report

against the plaintiff (Ex. “ABP-1” at page 7) which is another attempt to give

17 more justification for the 2nd Notice by casting aspersions upon the plaintiff

that she has been the subject of a police report. However, when we

compare the contents of this police report which alleged that the plaintiff had

apparently abused her influence over a printer and the contents of the 2nd

Notice on taking away documents, there is absolutely no connection to each

other and they are independent accusations.

This evidence of the police report is irrelevant here according to Richard

Malanjum J. (as he then was) in the Tun Datuk Patinggi Haji Abdul-Rahman

Ya'kub case (supra), as his lordship viewed that general charges, general

conclusions or irrelevant specific instances of wrongdoing are removed from

the consideration in finding whether the defendants have succeeded in

establishing the defence of justification.

The Court will find from the review of the evidence before that the

2 publication of the 2nd Notice not only unjustified but is not justifiable and the

defence of justification fails.

(c) Qualified Privilege

(i) A Defence?

6 The authorities cited before for the 1st Notice on qualified privilege states
7 explicitly that for qualified privilege to attach the publication of the 2nd Notice must

be made to parties with reciprocal interest one to inform and a corresponding

interest of the other to receive the information. In Adams v Ward (<<1917) AC 309>>

Lord Atkinson elaborated at page 334 that :

“[A] privileged occasion is, in reference to qualified privileged, an occasion

where the person who makes the communication has an interest or a duty,

legal, social, or moral, to make it to the person to whom it is made, and the

person to whom it is so made had a corresponding interest or duty to receive

it. This reciprocity is essential.”;

16 Chang Ming Tat FJ in John Lee’s case (supra), had found this reciprocity in

respect of the defamatory publication of the defendants which was copied to the

employee union of the plaintiff who had sought the union‟s help in the dispute to

19 give rise to the common interest or legal duty to receive. The 1st Notice has been

found above to fall within this category of common interest for the public to

receive.

In respect of an example of the communication arising from a “private duty

whether legal or moral, or in the conduct of his own affairs, in matters where his

interest is concerned” (as expounded by Parke B. in Toogood v Spyring (1834) 1

25 CM & R 181) would be the case of Barr v Musselburgh 1912 S.C. 174, where a

blacklist of persons unworthy of credit was circulated by a local trade association

amongst its members was held to be protected by qualified privilege as

28 disseminated for legitimate self defence of their interests. The 1st Notice also

falls within this category being for the legitimate conduct and to protect the affairs

2 and interests of the 1st defendant in the termination of employer relationship with

the plaintiff.

In respect of volunteering information about the behavior of a servant before

5 there is inquiry, the facts in Watt v Longsdon (1930) 1 K. B.130, 1929 All ER Rep

284; is a good example of when a social duty will be created for qualified

privilege to protect. A foreign manager of a company sent a letter accusing the

plaintiff who was managing director in charge of the company‟s overseas

business of gross charges of immorality, drunkenness and dishonesty was sent

to the defendant (liquidator/director of the company). This letter was shown to the

plaintiff‟s chairman and to the plaintiff‟s wife. The allegations were found to be

unfounded. It was held that the sender and recipients being the defendant and

the chairman were protected by qualified privilege but the publication by the

defendant to the plaintiff‟s wife on the other hand was not protected by privilege.

15 In Watt’s case (supra) Greer LJ said at page 152:

“It may be that the interest of the person receiving the communication is of

such a character as by its very nature to create a social duty in another under

the circumstances to make the communication that he does in fact make.”

19 The Court will find that the 2nd Notice may be addressed to the

plaintiff, it has been also published to the world at large even though it is for the

21 sole purpose of notifying the plaintiff to return the 1st defendant‟s documents

within 7 working days. In the Court‟s view it would have been appropriately

effected by the normal letter of demand and noting as stated before the

defendants‟ reason as to urgency or the truth of the taking of the documents

alleged has been discredited earlier on in this judgment. The resort to newspaper

publication was also an injurious mode that was unnecessary under the

27 circumstances (see Brown v Croome (1817) 2 Stark. 297, 171 E.R. 652; and
1 paragraphs 540 and 555 Gatley on Libel and Slander 8th Edition) and reeks of

malice.

In respect of a social or moral duty in particular circumstances to make an

unsolicited communication in relation to matters in which the recipient interest is

5 concerned in Stuart v Bell (1891) 2 QB 341 Lindley L.J. suggested this guide:

“Would the great mass of right-minded men in the position of the defendant

have considered it their duty under the circumstances to make the

communication?”

When we view these authorities for setting up qualified privilege in relation to the

10 2nd Notice, the only party that would under the circumstances have an interest in
11 receiving the 2nd Notice is the plaintiff herself alone, in respect of the rest of the

world at large the Court finds that there is no corresponding interest to receive

nor a legal or moral duty for the defendants to send it. The publication would be

more for the gossip or curiosity value of the trouble brewing between the plaintiff

15 and the 1st defendant and the intended purpose of the defendants to cast the
16 probity of the plaintiff in bad light as a former employee of the 1st defendant. This
17 gossip or curiosity value affords no defence to the 1st defendant for the

publication of the 2nd Notice to establish the defence of qualified privilege. (See

19 paragraphs 452 and 535 Gatley on Libel and Slander 8th Edition).
20 Like the plaintiff‟s wife in Watt’s case (supra) who may be interested to know the

gossip or curiosity wise was not sufficient to render the occasion privileged and

as such similarly the public‟s interest to know from the gossip or curiosity aspect

23 will not establish qualified privilege to protect the publication of the 2nd Notice to
24 the world at large by the 1st defendant (see further Botterill v Whytehead (1879)

25 41 L.T. 588 and R v Lancashire C.C. Police Authority, ex p. Hook (1980) Q.B.

603 at 615).

The Court will find that the defence of qualified privilege will not attach to the

28 publication of the 2nd Notice and this defence also fails for the 2nd Notice.

(3) Malicious Falsehood: Police Report

(a) Plaintiff‟s claim

3 Under this head the plaintiff‟s 3rd claim is for damages for malicious falsehood

contained in a police report under reference number TD/RPT/3605/2008 (police

5 report) lodged by the 1st and 2nd defendants on 17.03.2008 at the police station

at Tawau („the malicious falsehood‟).

In the police report the defendants wrote inter-alia the following words:

“Seorang pekerja iaitu Mabel Yin Yoke Main K/P: 691024-01-6142 telah

ditamatkan perkhidmatannya atas dasar persetujuan bersama atas sebab

tinkahlaku dan sikap yang tidak boleh diterima oleh syarikat. Semasa beliau

masih berada di syarikat ini, beliau telah menyalahgunakan kuasa dengan

mengarahkan dan mempengaruhi sebuah syarikat pengiklanan untuk

mencetak risalah bagi tujuan kempen parti politik. Perbuatan ini ternyata

bercanggah dengan peraturan syarikat dan syarikat tidak terlibat dengan

kegiatan sebegini. Sekian laporan saya.”

(The words complained of in paragraph 15 of the statement of claim are

translated as follows:-

“A worker i.e. Mabel Yin Yoke Main I.C. No. 691024-01-6142, based on a

mutual understanding, her service was terminated because her behavior and

character which is not acceptable by the company. While she was in the

company, she has misused her power by directing and instructing a media

company to print pamphlets for a politic party campaign purposes. This act

of her clearly shows a contravention with the company‟s rules and

regulations which the company is not involved with such activities. This is my

report.”)

The plaintiff denies abusing her power or did not instruct or in any manner

influence any advertising company or agency into printing any magazine,

periodic or flyers whatsoever for political campaign words complained of were

false in that the plaintiff the words in the police report complained of were

published maliciously as particularised:-

Particulars of malice

4 a. The 1st defendant wanted to have an excuse to terminate the plaintiff‟s

employment.

6 b. The 2nd defendant personally wanted to have an excuse to terminate the

plaintiff‟s employment as he perceived the plaintiff‟s capability as a threat

to his position in the company.

In consequences of the malicious falsehood, the plaintiff‟s reputation has been

seriously damaged and she has suffered considerable hurt, distress and

embarrassment.

(b) Defendants‟ defence

The defendants‟ defence is one of qualified privilege and protection under

Section 12 of the Defamation Act 1957 (Act 286) (paragraph 12 of defence).

During the trial the defendants sought to justify the police report with the

evidence of DW3 Tham Vui Hen who was to have printed the election banners

the subject matter of the abuse of powers at the plaintiff‟s behest.

(c) What is Malicious Falsehood

A claim for malicious falsehood is distinct claim from defamation which concerns

an action for injury to reputation. In a malicious falsehood claim (1) the plaintiff

must prove that the words are false (2) that they were published maliciously and

(3) unless covered by the statutory exception, that they caused him special

damage. (From Halsbury‟s Laws of Malaysia (2004 Reissue) Volume 2 in

24 paragraph 30.261 at page 566.) (See also Ratcliffe v Evans (1892) 2 Q. B. 524.)

The statutory exemption will apply and dispense with prove of special damage

where the words on which the action is founded are calculated to cause

pecuniary damage to the plaintiff are published in writing or other permanent

form or cause pecuniary damage in respect to his office, profession and business

when made. (From Halsbury‟s Laws of Malaysia (2004 Reissue) Volume 2 in

paragraph 30.272 at page 575.) Substantial damages will only be recoverable if

there is sufficient proof of a probable pecuniary loss.

(d) Findings of the Court

The Court on review of DW3‟s evidence finds him an evasive and unreliable

witness and the following facts transpire:

8 DW3 is beholden to the 2nd defendant (DW1) for work from the 1st

defendant and personal relationship (NOP lines 825 to 875 at pages

28 and 29 and line 976 to 978 at page 32);

The election banners only costing RM180.00 was in return for a

12 favour done for the 1st defendant caused by the fault of DW3 (NOP

lines 923 to 963 at pages 31 to 32);

It is extraordinary for DW3 to do this election banner works not in the

15 usual course of business of the 1st Defendant without reference to

DW1 and merely from the instruction of the plaintiff (NOP line 969 to

975 at page 32) who would only had been dealing with him recently

being newly employed then and that it was normally DW1 who

instructed DW3 with the plaintiff doing the following up ((NOP line

863 at page 29);

The defendants had not shown or questioned the plaintiff on the

accusation of abuse of power by having the election banners printed

which has been denied by the plaintiff;

No evidence has been led by the defendants that the act of the

25 plaintiff contravenes the 1st defendant‟s rules and regulations; and

The police report was made simultaneously with the publication of

2 the 1st and 2nd Notices of which the Court has found that the 2nd

Notice is defamatory of the plaintiff; and

Nothing has flowed or action taken against the plaintiff from the

lodging of the police report.

From these findings it appears to the Court that the accusation leveled against

the plaintiff in the police report based on the evidence of DW3 on a balance of

probability must have been false.

(e) Defences

(i) Section 12 of Defamation Act 1957

The Court will find from a reading of Section 12 of the Defamation Act 1957 is

meant to cover unincorporated associations and not incorporated companies

and it has no bearing to set up any defence from the making of a police report

against defamation or malicious falsehoods or for that matter the defamation

15 in the 1st and 2nd Notices published in newspapers by the defendants.

(ii) Qualified Privilege

Qualified privilege may be a defence if the claim for lodging the police report

is for defamation. Since the plaintiff‟s case is framed as mailicious falsehood

it is not a defence to such a claim.

(iii) Not False

The plaintiff must prove that the words published in the police report by the

defendants are false. Based on the Court‟s above findings it would appear

that the accusation against the plaintiff is false and also from the possibility

that every breach of company regulations may not necessarily be a crime.

From the evidence before the Court, the overall beneficiary of the plaintiff‟s

26 act appears to be the 1st defendant rather than the plaintiff.

The defendants have not raised evidence sufficient to rebut the Court‟s

findings that the police report was false. The evidence of DW3 is not reliable

and credible because of his ongoing business relationship with the

defendants and other findings as elaborated before.

(iv) No Malice

The plaintiff must prove actual malice to support a malicious falsehood claim.

Several inaccuracies may constitute evidence of malice. Publication knowing

it to be untrue is evidence of malice distinct from if the defendant can show

that he was being honest but wrong or careless but believing the words were

true. (Halsbury‟s Laws of Malaysia (2004 Reissue) Volume 2 in paragraph

30.268 at page 571.) The bulk of the case law on malice are from actions on

slander of title or goods.

The evidence unfolding before the Court shows a diligent plaintiff who had

14 irked the 2nd defendant causing the bad blood between them both leading to
15 the orchestrating by the 2nd defendant of the termination of the plaintiff‟s
16 employment with the 1st defendant.

Having terminated the plaintiff‟s employment, and to ensure that she had no

18 claims for wrongful termination, the 2nd defendant embarked on finding

evidence to besmear her. Without even asking her about the matter or to give

her a chance to explain, the defendants lodged the police report that accused:

“she has misused her power by directing and instructing a media company

to print pamphlets for a politic party campaign purposes. This act of her

clearly shows a contravention with the company‟s rules and regulations

which the company is not involved with such activities.”

We have to remember DW3‟s own words (at NOP line 997 at page 33) in the

way he was asked, if that “instruction” actually happened:

“Mabel asked me whether we can sponsor Sabarice and I said yes.”

shows there was no form of directive from the plaintiff and the instruction as

to what to do appears to have only followed after DW3 agreed. The wording

and the way the police report had been previously prepared at the

defendants‟ office for lodging does not reflect what happened.

In terms of whether an offence had been committed by the plaintiff, the Court

reiterates that not every breach of a company‟s rules and regulation through

misuse of powers though it may be a ground for dismissal is a crime.

8 All this adds up to show the prejudice and malice that the 2nd defendant
9 within the 1st defendant bore to the plaintiff.
10 Lastly the way the 1st and 2nd Notices have been published of the plaintiff in
11 the two newspapers and the defamation in the 2nd Notice are clear evidence

of malice emanating from the defendants to lend support that there is express

malice against the plaintiff and for supporting the plaintiff‟s claim for malicious

falsehood against her through the police report.

15 (v) Publication by 2nd defendant for 1st defendant
16 An employee in the case of the 2nd defendant will make the 1st defendant

vicariously liable for his acts or words published in the course of his

18 employment (see Citizens’ Life Co. v Brown (1904) AC 423).

Even though the text of the police report may have been prepared by the 1st

defendant‟s Kuala Lumpur office, the Court is inclined to conclude that the

accusation arose from the exchange between the DWI and DW3 but

22 nonetheless the 1st defendant as employer remains liable even if they may
23 not have been aware of the 2nd defendant‟s conduct according to the Citizens’

Life Co. case (supra).

(f) Finding of Malicious falsehood

The Court will find that the accusation in the police report has been proven to be

27 false by the plaintiff. The 1st defendant through the 2nd defendant had been

actuated by express malice in making the police report of a breach of company

regulation in trying to paint a bad picture of the plaintiff in justifying their

termination of the employment of the plaintiff. Even if the termination was by way

of one month‟s notice, it is now commonly accepted that there must be a reason

for serving the notice of termination then through the whims and fancy of

management.

(4)

nd defendant’s defence

The plaintiff‟s case against the 2nd defendant is in respect of the publication of the

Notices and the lodging of the police report. The 2nd defendant had pleaded in

paragraphs 3 and 13 of the defence that he was acting as an employee of the 1st

defendant in respect of the publications and the lodging of the police report.

There is no evidential contradiction of this fact or that he was not so authorized to

act on behalf of the 1st defendant in these matters.

The Court finds that the plaintiff has proven that the malice of the 2nd defendant

towards her had been instrumental to the 1st defendant taking action against her

but he was not the author of the 2nd Notice The 2nd defendant did make and

lodge the police report though on behalf of the 1st defendant. The plaintiff‟s

claims against the 2nd defendant in respect of the two Notices is dismissed. The

Court finds the 2nd defendant liable for malicious falsehood in the publication of

the police report.

(5)

Considerations affecting the Award of damages for the libel in the 2nd Notice

The Court will now consider the law regarding award of damages in respect of

the libel from the 2nd Notice and finds that the basis of the award of damages in a

defamation action is to (1) console for the personal distress and hurt caused to

the plaintiff‟s feelings; (2) reparation for the harm done to his personal and (if

relevant business) reputation; and vindication of his reputation (Halsbury‟s Laws

Of Malaysia (2004 Reissue) Volume 2 in paragraph 30.235 at page 548.)

In this respect Lord Nicholls in Reynolds v. Times Newspapers Ltd (2001) AC

127 at page 201 makes this clear on the need to protect a person‟s reputation:

“Reputation is an integral and important part of the dignity of the individual. It

also forms the basis of many decisions in a democratic society which are

fundamental to its well-being: whom to employ or work for, whom to promote,

whom to do business with or to vote for. Once besmirched by an unfounded

allegation in a national newspaper, a reputation can be damaged forever,

especially if there is no opportunity to vindicate one's reputation. When this

happens, society as well as the individual is the loser. For it should not be

supposed that protection of reputation is a matter of importance only to the

affected individual and his family. Protection of his reputation is conducive to

the public good.”

To protect this reputation by way of compensatory damages in a libel action,

Richard Malanjum J (as he then was) in the case of Tun Datuk Patinggi Haji

15 Abdul Rahman Ya'kub case (supra) at page 416 said:

“It is a settled law that in a libel action, the general rule is that damages are

assessed on a compensatory basis. However, in certain circumstances,

exemplary damages, or punitive damages as they are otherwise described

may be awarded.

Compensatory damages may include not only actual pecuniary loss and

anticipated pecuniary loss or any social disadvantage which result, or may be

thought likely to result, from the wrong which has been done. They may also

include the natural injury to his feelings - the natural grief and distress which

he may have felt at having been spoken of in defamatory terms, and if there

has been any kind of high-handed, oppressive, insulting or contumelious

behaviour by the defendant which increases the mental pain and suffering

caused by the defamation and may constitute injury to the plaintiff's pride and

self-confidence, these are proper elements to be taken into account in a case

where the damages are at large.”

In the assessment of damages to vindicate and console the injury to a person‟s

4 reputation, James Foong J. (as he then was) in Le Mercier’s case (supra) for the

defamatory publication in the News Straits Times he had awarded RM100,000.00

based on circumstances of the case and had taken the following factors into

consideration (from page 598 (d) as enunciated in Datuk Harris Bin Mohd. Salleh

8 v Abdul Jalil Bin Ahmad (1984) 1 MLJ 97; (1983) CLJ 521 (Rep):

“(1) the position and standing of the plaintiffs;

(2) the nature of the libel,

(3) the mode and extent of the publication,

(4) the conduct of the plaintiffs;

(5) the conduct of the defendants from the time of the libel down to the very

moment of the verdict, and

(6) the absence or refusal of any retraction or apology,”

16 In this regard, Gatley on Libel and Slander, 11th edn, also states that factors that

can be taken into account when assessing damages are the conduct of the

claimant, his position and standing, the nature of the libel, the mode and extent of

the publication, the absence or refusal of any retraction or apology and the

conduct of the defendant from the time the libel was published down to the

verdict.

The stand taken by the defendants in this case is created by their wrong

impression that the plaintiff‟s employment had been correctly terminated when it

was not and that this had affected the defendants‟ conduct of their defence when

in fact the plaintiff was truly the aggrieved party all these while. Not only was

there no apology, the conduct of the defence was to run her character down

further with the unsuccessful plea of justification and according to Halsbury‟s

Laws of Malaysia (2004 Reissue) in paragraphs 30.239, 30.240, 30.241 and

30.242 from page 552 all these are relevant factors for increasing or aggravating

damages.

In Institute of Commercial Management United Kingdom v The New Straits

Times Press (Malaysia) Bhd. (1993) 2 CLJ 365 the Plaintiff was defamed as an

institution of higher education participating in the operation of a diploma mill

racket and of selling its bogus qualifications for a fee. In awarding RM100,000.00

damages, Lim Beng Choon J stated:

9 “But the Court in assessing damages is required inter alia to examine the

conduct of the defendants from the time when the libel was published down to

11 the very moment of the verdict - see Praed v. Graham [1889] 24 QBD 53 @

55. That being the case, the Court has the right to take into consideration the

conduct of the defendants in refusing to publish any retraction and tendering

an apology after having been apprised of the groundlessness of the

imputations made in the said article and instead went ahead strenuously to

oppose the action of the plaintiffs, which conduct clearly shows that the

defendants have no desire up to today to mitigate the damages - see per Lord

18 Reid in Morgan v. Odhams Press Ltd. [1971] 1 WLR 1239 @ 1247.”
19 In Irene Fernandez v Utusan Melayu (M) Sdn Bhd and Anor (2008) 2 CLJ 814,

the plaintiff a local internationally well known social activist for migrant and

women‟s rights was defamed by a national newspaper in regard to her conduct in

a police investigations on the statements she had made on treatment of illegal

migrants was awarded RM200.000.00 general damages and one of the

consideration was that there was no retraction or apology made to her.

25 In this case, by reason of the libel in the 2nd Notice and by reference back to it,
26 the 1st Notice which was not defamatory per se and covered by qualified privilege

would now give the impression to the ordinary person reading it together with the

28 2nd Notice that the plaintiff was dismissed from employment by virtue of her acts
1 of wrongly retaining or stealing the 1st defendant‟s documents when in fact her

employment was terminated by a month‟s notice. The Court also take into

consideration the worst evidence of aggravation came from the size of the 2nd

4 Notice (as well as that for the 1st Notice) published in the two newspapers are of

such an enormous size as exceeds the normal notices that we commonly see

published in newspapers for similar purposes. These are factors of express

malice that can be used to aggravate the damages that would be awarded in

8 respect of the 2nd Notice which created the defamation against the plaintiff. (See

Halsbury‟s Laws of Malaysia (2004 Reissue) in paragraphs 30.237, 30.238, and

30.239, 30 from page 550)

In the case of Utusan Melayu (Malaysia) Bhd & Ors V. Tjanting Handicraft Sdn

Bhd & Anor (2005) 1 CLJ 71 the damages awarded for a defamatory newspaper

13 article on the unsightly batik of the 2nd respondent published by the appellant was

reduced from the sum of RM700,000 as general damages for libel to RM100,000

and the aggravated damages of RM300,000 reduced to RM50,000. Nik Hashim

JCA on the basis for an award for aggravated damages said:

“With regard to the award of aggravated damages, we agree with the learned judge

that there is indeed a case for the award. The finding of fact that the appellants were

motivated by actual malice in publishing the article complained of warrants the making

of an award of aggravated damages. However, the amount of aggravated damages

must be a reasonable one. In our judgment, a reasonable amount should not be as

much as the mother award.”

23 The effect of the libel in the 2nd Notice was to taint her as a dishonourable,

dishonest and untrustworthy employee and person to the whole of Tawau in

25 particular and Sabah through publication of the 2nd Notice in the Borneo Post and

the Morning Post newspapers. At the time of publication her employment had

been terminated and this effectively renders the plaintiff‟s chances of getting

further employment in Sabah thereafter as difficult if not impossible with such an

1 unfavourable public testimonial from an institution of the size of the 1st defendant,

a rice repackaging and trading business with branches all over Sabah.

Learned Counsel for the defendants in her submission had tried to lessen the

impact of the plaintiff‟s loss by relying on the plaintiff‟s resourcefulness in being

able to set up her own advertising and promotion company notwithstanding the

defamation. This evidence does not detract from the fact that the plaintiff has

been defamed and could no longer find employment which has to be vindicated

and compensated for by general damages. This evidence of income by self

employment may be relevant to meet a claim for special damages from loss of

salary during the period after the defamation.

The only remaining consideration is the submission of learned counsel for the

defendants on the delay in taking action for defamation by the plaintiff. The

plaintiff had tried to explain this by saying that she had relied on lodging her claim

with the Labour Department. The Court views this as a weak excuse because it

is clear from her appearance in Court that she is an intelligent person and would

know that the claim she had lodged before the Labour Department is only in

respect of unfair dismissal which would not cover the defamation (See NOP line

221 at page 8). She only decided to take action for defamation in January 2009

after her dismissal in March 2008 was resolved by the Agreement Memorandum

20 dated 28th October 2008 based on her prompt representation to the Labour
21 Department on 15th April 2008.

Gatley on Libel and Slander, 11th edn, states that factors that can be taken into

account when assessing damages are inter alia the conduct of the claimant but

the case law cited speaks of provocation from the plaintiff as an example.

Similarly in Halsbury‟s Laws of Malaysia (2004 Reissue) Volume 2 in paragraph

30.249 at page 559 though it states:

“The whole of the conduct of the plaintiff, before and after the action is brought

and in court during the trial may be taken into account for purposes of

determining the quantum of damages to be awarded”

are derived from case law on provocation from the plaintiff.

Recalling what Richard Malanjum J (as he then was) said in the case of Tun

Datuk Patinggi Haji Abdul Rahman Ya'kub (supra) about the purpose of

compensatory damages being for “….natural injury to his feelings - the natural

grief and distress which he may have felt at having been spoken of in defamatory

terms,…”

the Court is of the view that the evidence of delay in taking action does have an

impact on the degree of injury to feelings felt by the plaintiff. This conduct of the

plaintiff militates against the damages to be awarded and can be taken into

account in mitigation of damages to be awarded.

(6)

Considerations affecting the Award of damages for the malicious falsehood

In order to support a claim for malicious damage, i.e. to start an action there is no

necessity to plead special damages if statutorily exempted. When a plaintiff is

successful, however in order for the Court to compensate a plaintiff for his loss

from the falsehood and order substantial damages, it is still necessary for the

plaintiff to plead what his loss is especially in the form of special damages. The

plaintiff here has only made a general plea for damages without any special

damages pleaded.

The other consideration here is the extent of the publication of the police report is

another consideration to be taken into account in assessing damages for

malicious falsehood. Counsel for the defendants had submitted that the

publication was not extensive and limited in nature that is to the police and staff

of the 1st defendant which is not disputed.

1 It is noted that in Utusan Melayu (Malaysia) Bhd’s case (supra) the Court of

Appeal reduced the damages awarded for slander of goods (malicious

falsehood) in an article published in the newspaper by the Appellant of the 1st

respondent‟s batik products from RM300,000 to RM100,000. Nik Hashim JCA

had cited with approval what Lord Bridge of Harwish in Charleston v. News

Group Newspapers Ltd [1995] 2 AC 65 HL, at p. 70 said:

“It is often a debatable question which the jury must resolve whether the

antidote is effective to neutralize the bane and in determining this question

the jury may certainly consider the mode of publication and the relative

prominence given to different parts of it. (emphasis added)”

The Court will have to take cognizance of the fact that there was limited

publication of the malicious falsehood on the abuse of power and that the police

report did not go public as to enlarge the damage caused to the plaintiff by it.

(7)

Judgement: Award

The Court would allow the plaintiff‟s claim for libel under the 2nd Notice against

the 1st defendant and would have awarded the sum of RM150,000.00 as

compensatory damages and RM50,000.00 as aggravated damages based on the

facts of this case taking into consideration of the aggravating factors. The Court

agrees with learned Counsel for the defendants that the dilatoriness of the

plaintiff in only taking action ten months after publication of the 2nd Notice

presupposes that she was not unduly stinged by the publication but more by her

loss of employment. This delay is conduct of the plaintiff as claimant that can be

taken into account to reduce the award of compensatory damages by this Court

to the sum of RM100,000.00 and retaining RM50,000.00 as aggravated damages

to the plaintiff .

The Court would allow the plaintiff‟s claim for malicious falsehood in the police

report against the defendants and because of the limited extent of the publication

would award the sum of RM10,000.00 as damages.

4 The Court will dismiss the plaintiff‟s action for libel under the 1st Notice against
5 the 1st defendant.
6 The Court will dismiss the plaintiff‟s action for libel under the 1st Notice and 2nd
7 Notice as against the 2nd defendant.

In respect of costs the Court in exercise of its discretion will award the plaintiff

9 two thirds (2/3rd) of the costs of this action against the 1st defendant but in view of
10 the role played by the 2nd defendant, the Court will not award any costs in his

favour.

Judgment is given to the plaintiff:

13 (i) against the 1st defendant in respect of the 2nd Notice: General damages in

the sum of RM100,000 and Aggravated damages in the sum of RM50,000

with interest at the rate of 8% per annum from the date of this judgment till

date of realization;

(ii) against the defendants in respect of the Malicious falsehood: General

damages in the sum of RM10,000 with interest at the rate of 8% per annum

from the date of this judgment till date of realization;

20 (iii) Two Thirds (2/3rd) of the costs of the action to be taxed; and
21 (iv) No costs is awarded to the 2nd defendant.

23 DATED THIS DAY: 3RD MARCH 2011

SGD.

Y.A. JOHN KO WAI SENG

JUDICIAL COMMISSIONER

TAWAU HIGH COURT

COUNSEL:

For the Plaintiff: Ms. Voo Vun Han standing in

for Mr. Liew Hon Min

Messrs Liew Hon Min & Co

Advocates and Solicitors

11 Lot 56, 1st Floor, Block D, Bandaran Baru

91000 Tawau, Sabah.

For the Defendants: Ms. Monica Chin Sam Moi standing in for

Ms. Liew Ting Ting

Messrs Lam Teo Sebom & Tan

Advocates and Solicitors

19 Lot No. 30, 2nd & 3rd Floor,

Jalan Pantai,

88000 Kota Kinabalu, Sabah.

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