Judge puts stay on most of €900,000 Sunday World libel award

The High Court has put a stay on the majority of the €900,000 damages awarded to a Sligo man who successfully sued the Sunday World newspaper over an article that alleged he was a "drug king".

Last week Martin McDonagh (aged 45), of Cranmore Drive, Sligo, received a record €900,000 plus costs award from a High Court jury in a libel action after he sued the Sunday World over an article published on September 5, 1999, which described him as a "Traveller drug king."

The article appeared midway through Mr McDonagh's seven day detention for questioning in connection with a major drug seizure at Tubbercurry, Co Sligo, in September 1999.

Mr McDonagh, who has always denied involvement in drugs was eventually released without charge.

Today, Mr Justice Eamon deValera said that he was placing a stay on the €900,000 awarded to Mr McDonagh pending the hearing of the newspaper's appeal at the Supreme Court.

However the Judge ordered that Mr McDonagh was to receive a sum of €90,000. The issue of putting a stay on the costs was adjourned.

Eoin McCullough SC for Sunday Newspapers sought the stay on the grounds that the verdict was being appealed, and that his clients were unlikely to recover any of the money it pays out to Mr McDonagh should that appeal be successful.

It was further argued that Mr McDonagh would not suffer any prejudice should a stay be granted. Counsel said that it was his client's belief that the Supreme Court would set the verdict aside.

Counsel told the court that the appeal was being brought on the grounds that the jury's findings were perverse and contrary to the weight of evidence before it.

Counsel said the argument that the amount of the award was "excessive and disproportionate", will also form part of their appeal.

Opposing the stay Declan Doyle SC for McDonagh argued that there was "no prospect" of the Supreme Court overturning the central issue of the case.

The jury did not accept that the article was justified, and found that he was not involved in drug dealing.

He said the jury had made its finding after assessing the evidence before it, and their verdict was "an absolute finding of fact".

Counsel also rejected the suggestion that Mr McDonagh would not be prejudiced should a stay be granted.

In his ruling, Mr Justice deValera accepted an argument on behalf of the Sunday World that if Mr McDonagh was to receive the award before the appeal was heard there was a likelihood that the money might not be repaid should the Supreme Court overturn the jury's decision.

The Judge also noted that Mr McDonagh had said during the five-day hearing that the purpose of the action was not about the money but rather to restore his good name and reputation, particularly in Sligo.

The Judge said that while the jury had come to the conclusion that Mr McDonagh was entitled to damages, by his own admission during the five day trial McDonagh is a person with "significant criminal record" and was "a tax cheat".

He noted that McDonagh had made a settlement with CAB over his tax affairs "to put it at its best".

The Judge said that McDonagh did not seem to be embarrassed about nor did he apologise for any of these matters.

In addition the Judge said that it his understanding of how the Supreme Court considered these matters that the award of €900,000 was unlikely to be upheld.