Business groups call for €75k defamation award cap

Business groups call for €75k defamation award cap

Pictured (left–right): Neil McDonnell of ISME, Vincent Jennings of CSNA, James Coghlan of Astropark Ltd, and Stuart Lodge and Liam Gleeson of Lodge Service.

Business lobby groups have met with a junior minister in the Department of Justice to set out their call for a €75,000 cap on defamation awards.

A delegation from ISME, which represents small and medium enterprises (SMEs), and the Convenience Stores & Newsagents Association (CSNA) met with minister of state James Browne ahead of the expected publication of legislation amending the Defamation Act 2009.

The groups say that the Supreme Court’s landmark ruling in Delaney v. The Personal Injuries Board & Ors [2024] IESC 10 confirms that damages can be capped by the Oireachtas.

Neil McDonnell, CEO of ISME, said: “Any reform to the Defamation Act without addressing legal costs will be almost meaningless. As we have previously advised the Department of Justice, the real power in defamation litigation is not the ability to exact damages from defendants, it is the ability to inflict large costs upon them, without any hope of recovery if the defendant wins.

“The government must therefore introduce legislation giving effect to the minority report of the review of the administration of civil justice within the lifetime of the 33rd Dáil.”

Vincent Jennings, CEO of the CSNA, said: “CSNA welcomes the proposed amendments to the Defamation Act that will prevent frivolous and vexatious claims against our members.

“Unless serious harm has been suffered by a customer there should never be opportunities for chancers to enrich themselves. Asking for a receipt or proof of payment or refusing to accept a particular payment type should never be considered ‘actionable’.”

Stuart Lodge, CEO of retail security company Lodge Service International, said: “Over the past 15 years the situation, in regard to the litigation in Ireland, has become progressively worse and has now deteriorated to an extent that we are seriously questioning whether it is still viable to conduct business here.

“We also believe that we are not alone; and this claims culture is deterring other suppliers and investors from doing business in Ireland. We also propose that retailers and their representatives should be able to question customers in relation to their purchases or activities in their stores, without fear of actionable cases been taken against them.”

The business groups are also seeking changes to complaints before the Workplace Relations Commission (WRC) and the Legal Services Regulatory Authority (LSRA).

They said plaintiffs submitting complaints under the Equal Status Acts 2000–2015 should be required to lodge a deposit of €500 with the WRC.

They also claim that some lawyers are threatening defamation proceedings in order to have complaint before the LSRA withdrawn. They acknowledge that complaints already enjoy absolute privilege under the Legal Services Regulatory Act 2015 but call for additional “anti-SLAPP” measures.

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