Little fights defamation claim by hotel rich listers
A jury hearing a defamation case against Labour Party leader Andrew Little has been told to consider the impact of his statements on a 91-year-old man ‘‘nearing the end’’ of his life.
Little was present at the High Court in Wellington yesterday for the start of a civil jury trial, regarding comments he made about Scenic Hotel Group founder Earl Hagaman and his wife, Lani.
The Hagamans made a $101,000 donation to the National Party during the 2014 election.
A month later the company won a tender to manage the Matavai resort in Niue, which receives funding from the New Zealand Government.
Delivering his opening address on behalf of the Hagamans, Richard Fowler, QC, said Little first defamed the Hagamans in a written statement to media on April 18 last year, in which he said the donation and subsequent contract award ‘‘stink to high heaven’’ and ‘‘look like the latest in a line of questionable deals’’.
This was followed by five statements made by Little to media outlets, making similar comments.
The Hagamans were each seeking $550,000 in damages for the written statement, and $120,000 for each of the five subsequent statements made to media.
While each statement was slightly different, the Hagamans argued ‘‘the fundamental theme is one of corruption’’.
Little’s high profile meant much attention was paid to his comments, Fowler said.
‘‘If you are the leader of the opposition, people tend to take notice of what you say, particularly the media.’’
His initial comment was ‘‘not a situation where he responds off the cuff to real-time questions’’ but a media release he prepared and initiated in the expectation it would be picked up by media and widely published.
While Little had made a public apology and made an offer to cover costs, the Hagamans’ belief was that it was ‘‘too little, too late’’.
Fowler said the Scenic Hotel Group first became interested in expanding into the Pacific in 2009 – well before making the National Party donation.
After a first phase in 2010 that ‘‘seemed to run out of steam’’, a second phase began in mid-2013 and ended with the award of the Matavai resort contract.
Fowler said the contract award went through an established process for government tenders, which was checked by independent consultants.
The $7.5 million for the resort upgrade was paid to the owners of the resort who employed contractors, and not to the Hagamans.
Fowler said Earl Hagaman was ‘‘nearing the end’’, and asked the jury how they would feel to be confronted with a ‘‘slur’’ on their reputation at that stage of life
‘‘We only have one reputation, and once it’s lost it’s very very difficult to recover, and sometimes impossible.’’
The trial is expected to last five days.