A judge has rejected The Daily Telegraph's argument it made a reasonable settlement offer to a criminal lawyer defamed over his age and deafness, ordering them to pay his legal costs in addition to damages.
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Sydney lawyer Chris Murphy sued Nationwide News and journalist Annette Sharp over her October 10 column published in the Daily Telegraph, and on Monday was awarded $110,000 damages after a judge found he was defamed.
Ms Sharpe wrote Mr Murphy "continues to battle with the ravages of age and with it the associated deafness that has kept him from representing his clients in court during the past year".
The 72-year-old high-profile solicitor argued the article, published in print and online, portrayed him as being "past it, decrepit and over the hill".
In the Federal Court on Wednesday, Justice Michael Lee rejected the Telegraph's argument Mr Murphy should pay a portion of its legal costs because the paper had tried to settle the matter before trial.
Mr Murphy was offered $120,000 in damages, but the respondents would make no admission of liability and the settlement would be confidential.
The defamatory material would be changed, but no explicit correction made, and Mr Murphy would lose half or all of his settlement if he breached certain conditions.
"If it was not unreasonable for the applicant to reject that offer and proceed to a trial, it was at least imprudent," The Telegraph's barrister Dauid Sibtain said.
"It was unreasonable ... at least not to engage with it."
At the very least, that meant the parties should pay their own costs, he said.
But Justice Lee said the offer did not give Mr Murphy the opportunity to vindicate his reputation, which is a key aspect to defamation law.
"Although the amount payable pursuant to the deed would have been in excess of the amount pursuant to which judgment is being entered, that does not reveal the true story," he said.
"The offer, if accepted, would not have given him the vindication to which he is entitled.
"Accordingly, I do not consider this a compelling reason to depart from an order that Nationwide News pay Mr Murphy's costs of the proceedings."
He also dismissed the argument Mr Murphy has wasted the court's time and resources by unsuccessfully arguing four other defamatory implications.
Nationwide News is ordered to pay the full cost of Mr Murphy's part in the proceedings.
Australian Associated Press
