In a statement last night Sunday Worldeditor Colm McGinty said he was "disappointed at the verdict and will be appealing the jury's decision to the Supreme Court".
It continued: "We are confident that our appeal will be successful and that the court will overturn the jury's decision. This case highlights the enormous difficulties the newspaper industry in Ireland faces with current defamation legislation which for many years we have vigorously and repeatedly campaigned to be reformed."
The award of €900,000 is the highest libel award to date, topping the €750,000 awarded to Denis O'Brien in 2006 against Mirror newspapers. As costs are also awarded against the losing side, the Sunday World is facing a bill well into seven figures.
The O'Brien award resulted from an appeal to the Supreme Court of an original award of €250,000. The Supreme Court found it disproportionately high, and referred the case back to the High Court for the assessment of damages only. However, the court's view on damages could not be conveyed to the jury in the second trial, which increased the original award three-fold.
The majority of the five-judge Supreme Court held that they could not indicate to juries what the appropriate award might be.
Carol Coulter, Legal Affairs Editor