Kumova v Davison (No 2)

• Jurisdiction: Australia Federal only
• Judgment Date: 09 January 2023
• Neutral Citation: [2023] FCA 1
• Date: 09 January 2023
• Court: Federal Court

FEDERAL COURT OF AUSTRALIA

Kumova v Davison (No 2) [2023] FCA 1

File number:	NSD 984 of 2020
Judgment of:	LEE J
Date of judgment:	9 January 2023
Catchwords:	DEFAMATION – proceeding brought by Australian investor against “Stock Swami” Twitter personality – seventeen imputations alleged to have been conveyed by six tweets – where tweets alleged applicant had engaged in insider trading, “pumping and dumping” of securities and other market misconduct – all seventeen imputations carried – where parts of defence abandoned – defence of justification pleaded pursuant to s 25 of Defamation Act 2005 (NSW) – consideration of relevant principles – consideration of so-called defence of “partial” justification – consideration of ss 671B, 769C, 1041E and 1041H of Corporations Act 2001 (Cth) as part of substantial truth defence – defence of honest opinion pleaded to one matter – both defences not made out ; DAMAGES – where applicant sought general damages for non-economic loss – where applicant sought aggravated damages – assessment of damages – consideration of so-called “mitigation” of damages – where respondent engaged in relentless Twitter regime against applicant notwithstanding apology and commencement of proceedings – where respondent pursued partly misconceived justification defence – where respondent destroyed documents and failed to comply with discovery obligations – circumstances warrant award of aggravated damages for increased hurt ; PRACTICE AND PROCEDURE – where applicant sought permanent injunction enjoining respondent domiciled in New Zealand – consideration of relevant principles pursuant to Trans-Tasman Proceedings Act 2010 (NZ) – importance of form of proposed permanent injunction
Legislation:	Australian Securities and Investments Commission Act 2001 (Cth) s 12BB Competition and Consumer Act 2010 (Cth) Sch 2, ss 4, 4(2) Corporations Act 2001 (Cth) Ch 7, ss 205G, 671B, 671B(3), 761A, 764A(1)(a), 769C, 769C(1), 1041E, 1041E(1), 1041E(1)(a), 1041E(1)(b), 1041E(1)(b)(ii), 1041E(1)(c), 1041E(1)(c)(i), 1041E(1)(c)(ii), 1041H, 1043A Defamation Act 2005 (NSW) Pt 4 Div 3, ss 25, 26, 31, 31(1)(a), 31(1)(b), 31(1)(c), 31(5)(a), 33, 34, 35(2A), 38, 38(2), 39 Defamation Amendment Act 2020 (NSW) Evidence Act 1995 (Cth) ss 140(2), 191 Federal Court of Australia Act 1976 (Cth) Pt VB, ss 37M(3), 37N(2) Legal Profession Uniform Law Australian Solicitors’ Conduct Rules 2015 (NSW) r 28.1 Trans-Tasman Proceedings Act 2010 (Cth) Trans-Tasman Proceedings Act 2010 (NZ) ss 4, 53(1), 54(1), 54(1)(a), 54(2), 54(2)(b), 54(3), 57
Cases cited:	ABN AMRO Bank NV v Bathurst Regional Council [2014] FCAFC 65; (2014) 224 FCR 1 Australian Competition & Consumer Commission v Dateline Imports Pty Ltd [2015] FCAFC 114 Australian Competition and Consumer Commission v Pacific National Pty Ltd [2020] FCAFC 77; (2020) 277 FCR 49 Australian Competition and Consumer Commission v TPG Internet Pty Ltd [2020] FCAFC 130; (2020) 278 FCR 450 Australian Competition and Consumer Commission v Woolworths Group Ltd [2020] FCAFC 162; (2020) 281 FCR 108 Australian Securities and Investments Commission v ActiveSuper Pty Ltd (in liq) [2015] FCA 342; (2015) 235 FCR 181 Australian Securities and Investments Commission v Cassimatis (No 8) [2016] FCA 1023; (2016) 336 ALR 209 Australian Securities and Investments Commission v Forex Capital Trading Pty Limited, in the matter of Forex Capital Trading Pty Limited [2021] FCA 570 Australian Securities and Investments Commission v GetSwift Limited (Liability Hearing) [2021] FCA 1384 Australian Securities Commission v McLeod [2000] WASCA 101; (2000) 22 WAR 255 Australian Securities and Investments Commission v Scholz (No 2) [2022] FCA 1542 Australian Securities Commission v Nomura International plc (1998) 89 FCR 301 Axon v Axon (1937) 59 CLR 395 Barilaro v Google LLC [2022] FCA 650 Bazzi v Dutton [2022] FCAFC 84; (2022) 289 FCR 1 Borealis AB v Geogas Trading SA [2011] 1 Lloyd’s Rep 482; [2010] EWHC 2789 (Comm) Boughey v The Queen (1986) 161 CLR 10 Boyle v SCA Packaging Ltd [2009] ICR 1056; [2009] 4 All ER 1181 Briginshaw v Briginshaw (1938) 60 CLR 336 Broome v Cassell & Co Ltd [1972] AC 1027 Burstein v Times Newspapers Ltd [2001] 1 WLR 579; [2000] All ER (D) 2384 Campomar Sociedad, Limitada v Nike International Ltd [2000] HCA 12; (2000) 202 CLR 45 Channel Seven Adelaide Pty Ltd v Manock [2007] HCA 60; (2007) 232 CLR 245 Channel Seven Sydney Pty Ltd v Mahommed [2010] NSWCA 335; (2010) 278 ALR 232 Chau v Australian Broadcasting Corporation (No 3) [2021] FCA 44; (2021) 386 ALR 36 Cummings v Lewis (1993) 41 FCR 559 Director of Public Prosecutions (Cth) v JM [2013] HCA 30; (2013) 250 CLR 135 Dutton v Bazzi [2021] FCA 1474 Equititrust Limited (In Liq) (Receiver Appointed) (Receivers and Managers Appointed) (Responsible Entity) v Equititrust Limited (In Liq) (Receiver Appointed) (Receivers and Managers Appointed); In the Matter of Equititrust Limited (In Liq) (Receiver Appointed) (Receivers and Managers Appointed) (No 5) [2018] FCA 11; (2018) 124 ACSR 115 Fairfax Media Publications Pty Ltd v Kermode [2011] NSWCA 174; (2011) 81 NSWLR 157 Forrest v Australian Securities and Investments Commission [2012] HCA 39; (2012) 247 CLR 486 Google Inc v Australian Competition and Consumer Commission [2013] HCA 1; (2013) 249 CLR 435 Greek Herald Pty Ltd v Nikolopoulos [2002] NSWCA 41; (2002) 54 NSWLR 165 Hanson-Young v Leyonhjelm (No 5) [2020] FCA 34 Herron v HarperCollins Publishers Australia Pty Ltd (No 2) [2022] FCAFC 119 Herron v HarperCollins Publishers Australia Pty Ltd [2022] FCAFC 68; (2022) 400 ALR 56 Hornsby Building Information Centre Pty Ltd v Sydney Building Information Centre Ltd (1978) 140 CLR 216 In the matter of Colorado Products Pty Ltd (in prov liq) [2014] NSWSC 789; (2014) 101 ACSR 233 James Hardie Industries NV v Australian Securities and Investments Commission [2010] NSWCA 332; (2010) 274 ALR 85 John Fairfax Publications Pty Ltd v O’Shane [2005] NSWCA 164; (2005) Aust Torts Reports 81-789 Jones v Dunkel (1959) 101 CLR 298 Kumova v Davison [2021] FCA 753 LFDB v SM (No 3) [2017] FCA 80 Molan v Dailymail.com Australia Pty Ltd [2022] FCA 1004 Munsie v Dowling (No 10) [2018] NSWSC 709 Nationwide News Pty Ltd v Rush [2020] FCAFC 115; (2020) 380 ALR 432 Palmer v McGowan (No 5) [2022] FCA 893 Parkdale Custom Built Furniture Pty Ltd v Puxu Pty Ltd (1982) 149 CLR 191 Qantas Airways Limited v Gama [2008] FCAFC 69; (2008) 167 FCR 537 Rochfort v John Fairfax & Sons Limited [1972] 1 NSWLR 16 Rush v Nationwide News Pty Limited (No 9) [2019] FCA 1383 Rush v Nationwide News Pty Ltd (No 2) [2018] FCA 550; (2018) 359 ALR 564 ...