THE SUPREME Court has reserved judgment on an application by a newspaper group to stop businessman Dermot Desmond pursuing a libel action against it over articles published 10 years ago. Mr Desmond issued proceedings in 1998 against Mirror Group Newspapers (MGN) alleging he was defamed in two articles published in the Irish Mirror on January 8th and January 9th, 1998.
The Supreme Court was told yesterday Mr Desmond had, on legal advice, subsequently put the libel action on hold to await the outcome of the Moriarty tribunal which was investigating matters referred to in the articles.
However, in February 2005, solicitors for Mr Desmond wrote to MGN stating they intended to proceed with the libel action. MGN then applied to the High Court to prevent the case proceeding, arguing it had been prejudiced because of the delay.
In the High Court in July 2005, Mr Justice Michael Hanna refused MGN’s application. The group appealed that decision to the Supreme Court. The appeal was heard yesterday and Mr Justice Hugh Geoghegan, presiding, sitting with Mr Justice Nicholas Kearns and Ms Justice Fidelma Macken, said the court would reserve its decision.
In arguments to the court, Luan Ó Braonáin SC, for MGN, argued the High Court was wrong in allowing the action to proceed. He said there was an inordinate and inexcusable delay by Mr Desmond in advancing the action and he was not entitled to defer it to await the outcome of the tribunal.
The proceedings were issued in 1998 but nothing was done until July 2005 when MGN applied to have the action dismissed. His side was never informed by Mr Desmond’s side that the case was deferred in light of the tribunal. Bill Shipsey SC, for Mr Desmond, said his client had initiated libel proceedings within weeks of publication of the articles and brought two motions to compel MGN to deliver a defence. The defence was delivered in 1999. Counsel said the fact Mr Desmond “parked” the proceedings was not an argument to prevent it from proceeding.