In defamation proceedings under s 7A of the Defamation Act 1974 (NSW), the question whether an imputation involves an inference upon an inference is a question of capacity for the judge and should not be left to the jury. Where a case is pleaded exclusively as a business defamation, the trial judge must direct the jury that the only question is whether the imputations tend to injure the plaintiff in their business, and must not leave the general defamation test to the jury. The Court of Appeal may enter a verdict on the defamatory meaning question under s 108(3) of the Supreme Court Act where the imputation is plainly defamatory and no reasonable jury properly directed could reach any other verdict, particularly in business defamation cases where community standards are less important. Ipp JA's view that there is no absolute rule precluding an inference upon an inference from conveying a defamatory imputation, while agreed to by Beazley JA in result, represents a separate analytical path that may influence future development of the doctrine.
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