THE MAN who was awarded a record €900,000 libel damages by a High Court jury over a newspaper article describing him as a "Traveller drug king" is to get €90,000 of that amount pending the outcome of a Supreme Court appeal against the award.
In his decision on the stay application, the judge remarked that, given his understanding of how the Supreme Court considered these matters, he believed the €900,000 award was unlikely to be upheld.
At the High Court yesterday, Mr Justice Éamon De Valera agreed to put a stay preventing payment of all but €90,000 of the sum awarded to Martin McDonagh against the Sunday World.
He adjourned the newspaper's application for a stay on the costs of the case, which were also awarded to Mr McDonagh.
Mr McDonagh (45), of Cranmore Drive, Sligo, had sued over an article published on September 5th, 1999, which described him as a "Traveller drug king".
It was published in the newspaper midway through Mr McDonagh's seven-day detention for questioning in connection with a drug seizure at Tubbercurry, Co Sligo, in September 1999.
Mr McDonagh, who has always denied involvement in drugs, was released without charge.
Eoin McCullough SC, for the newspaper, applied for a stay preventing any payment of the award pending the outcome of the appeal. The court should grant the stay in light of the appeal being brought which the newspaper believed would be successful.
He also argued that his client was unlikely to recover any money paid out to Mr McDonagh if the appeal was successful. Mr McDonagh would not suffer any prejudice should a stay be granted, he submitted.
Counsel said the appeal was being brought on the grounds that the jury's findings were perverse and contrary to the weight of evidence before it. Arguments that the amount of the award was "excessive and disproportionate" would also be part of their appeal.
Opposing the stay, Declan Doyle SC, for Mr McDonagh, argued there was "no prospect" of the Supreme Court overturning the central issue of the case. The jury had not accepted the article was justified and had found his client was not involved in drug dealing.
Counsel said the the verdict was "an absolute finding of fact". He also rejected the suggestion that Mr McDonagh would not be prejudiced should a stay be granted.
In his ruling, the judge accepted that if Mr McDonagh was to receive the award before the appeal, there was a likelihood the money might not be repaid should the Supreme Court overturn the jury's decision.
The judge also noted Mr McDonagh had said during the five-day hearing that the purpose of the action was not about the money but rather was to restore his good name and reputation, particularly in Sligo.
While the jury had come to the conclusion that Mr McDonagh was entitled to damages, Mr McDonagh, by his own admission during the trial, was a person with a "significant criminal record" and was "a tax cheat", the judge said.
He noted Mr McDonagh had made a settlement with the Cab over his tax affairs "to put it at its best". Mr McDonagh did not seem to be embarrassed about nor did he apologise for any of these matters, the judge added.
In his understanding of how the Supreme Court considered these matters, the award of €900,000 was unlikely to be upheld, the judge added.