Record libel award is slashed from €10m to €250,000 on appeal
THE Court of Appeal has cut a €10m libel award – the highest ever in the State – against mining company Kenmare Resources to €250,000.
The €10m award was made to its former deputy chairman Donal Kinsella by a High Court jury in 2010, against Kenmare and its chairman Charles Carvill.
It related to a press release issued by the firm which the jury found was defamatory.
Kenmare and Mr Carvill appealed and yesterday a three-judge appeal court said while Mr Kinsella was defamed, the award must be set aside as disproportionate, unjust and unfair.
Rather than remit the matter of damages for rehearing to the High Court, it decided €250,000 was just and fair compensation for the wrong visited on Mr Kinsella as a result of the press release.
The €10m award – made up of €9m for general damages and €1m for aggravated damages – was made in 2010 after a jury found Mr Kinsella was defamed in a company press release issued on July 10, 2007.
Kenmare had to pay €500,000 to Mr Kinsella as a condition of it being allowed to appeal the award.
The press release concerned an incident in May 2007 in Mozambique, where a company board meeting was being held, when Mr Kinsella sleepwalked naked to the bedroom door of company secretary Deirdre Corcoran. The press release referred to an “incident” and said Mr Kinsella was being asked to resign from the company’s audit committee.
An investigation by an independent solicitor on behalf of the company had found there was no conscious attempt on Mr Kinsella’s part to enter Ms Corcoran’s room. Mr Kinsella was prone to sleep-walking.
He sued the company and chairman Mr Carvill.
The Court of Appeal judgment was written by all three judges, Ms Justice Mary Irvine, Ms Justice Máire Whelan and Ms Justice Marie Baker. It found Kenmare had not established the existence of any circumstances which would justify the court interfering with the finding of the jury as to the meaning of the press release that it was defamatory.
The appeal court respects the role of the jury in coming to its determination.
It was satisfied there was no serious error in the manner in which the then High Court judge who heard the case, Eamon de Valera, charged the jury regarding the meaning of the press release.
It was satisfied, however, the trial judge erred in law in concluding the publication of the release took place on an occasion of qualified privilege. Mr Kinsella had cross-appealed on the issue of qualified privilege, claiming the company had no legal or moral obligation to publish the press release at the time.
The appeal court was further satisfied that no reasonable jury could have considered the €9m award of general damages was necessary to compensate Mr Kinsella for the injury he sustained and in order he might re-establish his reputation.
It was further satisfied the manner of Mr Kinsella’s cross-examination did not justify the trial judge leaving open to the jury the possibility of aggravated damages of €1m which must also be set aside.
“It was an award which no reasonable jury could have considered necessary to compensate Mr Kinsella for any additional hurt or upset caused by the manner in which he was cross-examined concerning the conversation which he maintained he had with Ms Corcoran while they were in a jeep in Moma, Mozambique”.
The court said both defendants, Kenmare and Mr Carvill, will be jointly and severally liable for the award.
The issues of costs and other matters will be dealt with next month.