Introduction

Communication is a fundamental part of living and participating in a strata community in New South Wales (NSW). While disagreements and discussions are expected when managing shared property, it is important that interactions remain respectful and factual. Statements that falsely harm an individual’s reputation can lead to legal consequences under defamation law.

This article provides an overview of defamation as it applies within strata settings. It explains what constitutes defamation, the common ways it might occur in strata communities, the legal elements required for a claim, and potential defences. Understanding these aspects is beneficial for owners corporation members, lot owners, strata managers, and residents to navigate their rights and responsibilities regarding communication.

Understanding Defamation in Strata Settings

What Constitutes Defamation

Defamation in strata settings involves making false statements that harm someone’s reputation. In the context of a strata community or owners corporation, defamation could involve any of the following parties:

• A lot owner
• A tenant
• A committee member
• A strata manager
• The chairperson

For example, imagine a disgruntled owner sends an email to the strata committee falsely accusing the strata manager of financial mismanagement. If this email is seen by others, it could seriously damage the strata manager’s reputation and potentially their career. Such a false statement, communicated to third parties and causing reputational harm, would constitute defamation in a strata context.

Common Forms of Defamation in Strata

Defamation in strata settings often arises from disputes and disagreements, escalating into damaging statements. These defamatory statements can take many forms, spreading through various channels within the strata community.

• Emails: A common breeding ground for defamatory content. Disputes over by-laws, noise complaints, or parking arrangements can lead to heated email exchanges. An email containing false accusations or insults, especially if copied to multiple parties, could be considered defamatory.
• Strata Meetings: The heat of the moment during these meetings can lead to defamatory statements. For instance, a committee member making unfounded allegations against a lot owner during a meeting, without evidence or justification, could be grounds for a defamation claim.
• Written Communications: This category encompasses notices, letters, minutes of meetings, and even social media posts related to the strata scheme. For example, publishing false information about a tenant in a building newsletter, even if unintentional, could be considered defamation.

The key takeaway is that defamation doesn’t require malice or intent to harm. Even unintentional false statements can have serious legal consequences, highlighting the need for caution and careful communication in all strata-related matters.

Legal Requirements for Defamation Claims

Elements of Defamation

In NSW, for a statement to be considered defamatory, several elements must be proven:

1. Defamatory Meaning: The statement must be defamatory—that is, it would lower the person’s reputation in the eyes of ordinary community members. For example, falsely accusing someone of theft or incompetence in their role as a committee member could meet this threshold.
2. Identification: The defamatory statement must refer to the plaintiff, even if they are not named directly. It must be clear to readers or listeners that the allegation concerns the complainant.
3. Publication: The statement must be communicated to at least one third party. In strata settings, this often occurs through:
   • Emails
   • Meeting minutes
   • Social media posts

Together, these elements ensure that only statements with a measurable reputational harm, clear reference to the victim, and actual communication to others qualify as defamation under NSW law.

Available Defences to Defamation

Even if a statement meets the elements of defamation, there are several defences that can be raised:

Honest Opinion This defence applies where the statement was an expression of belief rather than a statement of fact, and it was based on proper material. For example, a lot owner expressing their opinion that the strata manager is not managing the building well, based on their observations of ongoing maintenance issues, might be considered an honest opinion.

Justification This defence applies if the defamatory statement is substantially true. For instance, if a committee member was accused of misusing owners corporation funds, and this allegation was accurate, the defence of justification could be raised.

Qualified Privilege This is another important defence in defamation cases, particularly relevant in strata settings. Qualified privilege applies to communications made in circumstances where:

• The publisher has a legal, social, or moral duty to communicate the information
• The recipient has a corresponding interest in receiving it

Consider a scenario where a strata manager sends an email to all owners warning them about a particular resident who has been repeatedly violating by-laws. This communication, even if potentially defamatory, might be protected by qualified privilege as the strata manager has a duty to inform owners about matters affecting the property, and the owners have a vested interest in receiving this information.

However, it’s important to note that this defence can be defeated if the plaintiff can prove the defendant acted with malice, meaning the defendant acted with ill will or improper motive.

Key Cases on Defamation in Owners Corporation

Murray v Raynor [2019] NSWCA 274 Case Study

The case of Murray v Raynor [2019] NSWCA 274 involved a dispute between a lot owner, Ms. Murray, and the chairperson of the owners corporation, Mr. Raynor, in NSW.

Following a series of break-ins to the building’s mailboxes, Mr. Raynor, in his capacity as chairperson, sent emails to all residents, including Ms. Murray, reminding them to lock their mailboxes. Ms. Murray objected to these emails and responded with an email sent to Mr. Raynor and all other owners and occupiers in the strata scheme. In this email, she accused Mr. Raynor of:

• “Criminal” behaviour
• “Stalking”
• Having a “fixation” on her

Mr. Raynor sued Ms. Murray for defamation, and the NSW District Court initially ruled in his favour, awarding him $120,000 in damages. The court found that Ms. Murray’s email contained defamatory imputations that damaged Mr. Raynor’s reputation.

However, Ms. Murray appealed the decision, and the NSW Court of Appeal overturned the initial ruling. The Court of Appeal determined that Ms. Murray’s email was protected by qualified privilege, as it was sent in the context of a strata dispute and related to matters of common interest to the owners and occupiers.

Walden v Danieletto [2018] QDC 221 Case Study

The Queensland case of Walden v Danieletto [2018] QDC 221 involved a lot owner, Mr. Walden, and the body corporate manager, Mr. Danieletto.

Mr. Walden had overdue levies, which he paid online the day before a general meeting. However, due to a technical issue, the body corporate’s system, managed by Mr. Danieletto, did not register the payment. During the meeting, Mr. Danieletto announced that Mr. Walden was “unfinancial,” and this statement was recorded in the meeting minutes.

Mr. Walden sued Mr. Danieletto for defamation, arguing that the “unfinancial” statement harmed his reputation. However, the Magistrates Court ruled in favour of Mr. Danieletto on two grounds:

• The statement was not defamatory
• Even if it were defamatory, it was protected by qualified privilege

The court determined that Mr. Danieletto was acting reasonably in informing the body corporate about outstanding levies, a matter of common interest to the owners.

Mr. Walden appealed the decision, but the District Court upheld the initial ruling, further solidifying the principle of qualified privilege in strata communication.

Best Practices for Strata Communications

Navigating communication in a strata scheme can be challenging. Disputes can arise easily, sometimes leading to actions that could be considered defamatory.

Guidelines for Email Communications

• Think before you send: Given that emails create a permanent record, carefully consider the content and tone of your message before sending it. Avoid using inflammatory language or making accusations.
• Be mindful of your audience: Be cautious about who you include in your email threads, especially when discussing sensitive matters. Copying in unnecessary parties can increase the risk of defamation.
• Stick to the facts: When addressing issues, focus on factual information and avoid making subjective or unfounded statements about individuals.
• Seek clarification before reacting: If you receive an email that upsets you, take time to process the information before responding. Consider seeking clarification from the sender or a third party, like a strata manager, to ensure a balanced understanding of the situation.

Proper Conduct in Strata Meetings

• Maintain decorum: Strata meetings can be emotionally charged, but it’s crucial to maintain a respectful and professional demeanour throughout. Avoid interrupting others or engaging in personal attacks.
• Focus on the agenda: Stick to the topics outlined in the meeting agenda and avoid introducing irrelevant issues or personal grievances.
• Be mindful of confidentiality: Remember that information shared in strata meetings is often confidential. Avoid disclosing sensitive information outside the meeting, especially if it could damage someone’s reputation.
• Seek resolution through appropriate channels: If a dispute arises, explore mediation or other forms of dispute resolution before resorting to legal action.

Conclusion

Defamation within strata communities is a serious issue with potentially significant legal ramifications for owners, committee members, and strata managers. Understanding what constitutes defamation, the available legal defences like qualified privilege, and adhering to best practices for communication in emails and meetings are essential for maintaining respectful relationships and avoiding disputes.

If you believe you have been defamed within your strata scheme, or if you are facing allegations of defamation, it is crucial to seek timely legal advice. Contact PBL Law Group to speak with our experienced NSW strata title lawyers who can assess your situation, explain your rights and obligations, and guide you through the appropriate legal pathways.

Frequently Asked Questions