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Craig v Slater [2019] NZHC 1269

06 June 2019

Decision

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Summary

Costs judgment in defamation proceeding Craig v Slater [2018] NZHC 2712. 3B costs allocated to Slater as the successful party. Craig succeeded only in proving that he did not place his press secretary, Rachel MacGregor, under financial pressure to sleep with him and that he did not sexually harass another woman. Craig failed on all other significant pleaded causes of action, including particularly the principal allegation that he had sexually harassed Ms MacGregor. Costs award to Slater reduced by 10 percent to reflect Craig's limited success.
The Court held that costs should lie where they fall in respect of the counterclaim. Craig protected by response to an attack privilege, but Slater succeeded in proving the statements about his journalistic integrity were not true. Because it is difficult to identify precisely those costs incurred by Slater in respect of the counterclaim, a discount of 10 percent applied to reflect those costs lying where they fall.

Mr Slater's claim for indemnity costs failed because the Court accepted that Mr Craig did not know he had sexually harassed Ms MacGregor when bringing the proceeding, due largely to his oblivious and self-involved perception of their professional and personal relationship. He therefore did not bring the proceeding vexatiously or frivolously.

Final disposition of costs awards as follows: first, Slater shall not receive costs for any interlocutory steps taken in respect of the counterclaim; costs in respect of pretrial preparation and trial appearances reduced by 10 percent to reflect the aspect of those costs expended in relation to the counterclaim lying where they fall; 90 percent of the remaining sum payable by Mr Craig to reflect the limited success he had on the substantive claim.

 


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