Global Energy v McGraw-Hill: Defamation Claim over Cash-Flow Problems News

Global Energy (Asia) Pte Ltd sued McGraw-Hill Companies Inc Trading as Platt's in the High Court of Singapore, alleging defamation based on a news release stating Global Energy was selling barges due to cash-flow problems. McGraw-Hill pleaded justification and qualified privilege. The court considered McGraw-Hill's appeal against the dismissal of their application for further discovery. The court dismissed the appeal in part, ordering Global Energy to disclose their audited accounts for financial years 1999 and 2000.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal dismissed in part. The court ordered the Plaintiffs to disclose their audited accounts for financial years 1999 and 2000.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Global Energy sued McGraw-Hill for defamation over a news release alleging cash-flow problems. The court considered the scope of discovery in defamation cases.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
Global Energy (Asia) Pte LtdPlaintiff, RespondentCorporationAppeal dismissed in partPartial
McGraw-Hill Companies Inc Trading as Platt'sDefendant, AppellantCorporationAppeal dismissed in partPartial

3. Judges

Judge NameTitleDelivered Judgment
Tay Yong KwangJudicial CommissionerYes

4. Counsels

4. Facts

  1. The Plaintiffs are in the bunkering business.
  2. The Defendants published a news release stating the Plaintiffs were selling barges due to cash-flow problems.
  3. The Plaintiffs claimed the news release was malicious and false.
  4. The Defendants pleaded the defences of justification and qualified privilege.
  5. The Defendants sought further discovery of the Plaintiffs' accounting documents.
  6. The Plaintiffs argued the Defendants were on a 'fishing expedition'.

5. Formal Citations

  1. Global Energy (Asia) Pte Ltd v McGraw-Hill Companies Inc Trading as Platt's, Suit 1058/2000/Z, RA 120/2001, [2001] SGHC 247

6. Timeline

DateEvent
Defendants published news release
Plaintiffs' solicitors sent letter to Defendants
Defendants filed particulars of the defence of justification
Affidavit of Mr Vijai Parwani filed
Assistant Registrar ordered further particulars
Registrar directed parties to file lists of documents
Plaintiffs filed list of documents
Defendants' solicitors sent letter to Plaintiffs' solicitors requesting further discovery
Plaintiffs' solicitors replied to Defendants' solicitors
Defendants applied for further and better list of documents
Assistant Registrar dismissed Defendants' application for further discovery
Plaintiffs granted extension of time to furnish documents
Judgment delivered

7. Legal Issues

  1. Discovery
    • Outcome: The court held that the Defendants' request for discovery was too broad and amounted to a 'fishing expedition,' but ordered the Plaintiffs to disclose their audited accounts for financial years 1999 and 2000.
    • Category: Procedural
    • Sub-Issues:
      • Scope of discovery
      • Relevance of documents
      • Fishing expedition
  2. Justification
    • Outcome: The court considered the Defendants' plea of justification in the context of the discovery application.
    • Category: Substantive
  3. Qualified Privilege
    • Outcome: The court considered the Defendants' plea of qualified privilege in the context of the discovery application.
    • Category: Substantive

8. Remedies Sought

  1. Damages for defamation

9. Cause of Actions

  • Defamation

10. Practice Areas

  • Commercial Litigation

11. Industries

  • Shipping
  • Media

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Business Software Alliance & Ors v S M Summit Holdings Ltd & AnorCourt of AppealYes[2000] 2 SLR 733SingaporeCited for the principles regarding relevancy and the impermissibility of 'fishing expeditions' in discovery in defamation actions.
The Peruvian Guano CoN/AYes[1882 – 83] 11 QBD 55N/ACited for the test of relevancy in discovery, but distinguished in the context of defamation actions to prevent 'fishing expeditions'.
McDonald’s Corp. & Anor v Steel & AnorN/AYes[1995] 3 AER 616N/ACited regarding the striking out of a plea of justification, but found to be of limited assistance regarding the issue of relevancy of documents sought in discovery.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute NameJurisdiction
Order 24 rule 1 of the Rules of CourtSingapore
Order 24 rule 7 of the Rules of CourtSingapore

15. Key Terms and Keywords

15.1 Key Terms

  • Defamation
  • Discovery
  • Justification
  • Qualified privilege
  • Fishing expedition
  • Bunkering
  • Cash-flow problems
  • News release

15.2 Keywords

  • Defamation
  • Discovery
  • Justification
  • Qualified privilege
  • Fishing expedition
  • Bunkering
  • Cash-flow problems

17. Areas of Law

16. Subjects

  • Defamation
  • Discovery
  • Civil Procedure