First HotCopper defamation case settled 25-February-10 by Rebecca Lawson
Perth-based IT specialist company Datamotion Asia Pacific has successfully prosecuted the first of a series of defamation actions brought about by postings on stock market discussion forum, HotCopper.
It's believed to be the first case of its kind in Australia and Datamotion lawyer, Martin Bennett of Lavan Legal, told WA Business News it sends a clear message that pseudonyms will not protect a forum user's identity.
The case is also unique in that a company cannot prosecute in a defamation case, however since Datamotion has few employees, it was categorised as an excluded corporation and therefore able to take legal action.
Datamotion had started Supreme Court action against Melbourne man Graeme Gladman, who had posted several defamatory comments relating to Datamotion and its managing director Ronald Moir under a pseudonym in October last year.
Mr Bennett said following a court order that forced HotCopper to disclose the comments' author, Mr Gladman was offered the opportunity to apologise for his remarks in writing.
However, the apology was unacceptable and proceedings were to take place in the Supreme Court of WA before a settlement was reached.
Under the settlement deal, Mr Gladman will pay Datamotion and Mr Moir a total of $20,000, pay Datamotion's taxed legal costs of $10,000, provide apologies and pledge not to post further defamatory comments.
Mr Moir told WA Business News that he and the company feel vindicated and the outcome will be a deterrent to others who seek to defame others. Mr Gladman could not be reached for comment.
Mr Bennet said the legal action paves the way for more similar prosecutions and added that historically, he has received queries from executives and directors regarding comments on forums.
"This is the first one that's resulted in the commencement of proceedings; often the solution is to write to the internet service provider, point out that its defamatory and the offending threads are then taken down," he said.
"These [Datamotion] comments were widespread and persistent, there were multiple postings so litigation was the right course of action."
Mr Gladman is the first of three legal actions for Datamotion with George Moore and David Norris alleged to have also made defamatory comments on HotCopper.
Mr Bennet said no resolutions with Messrs Moore and Norris had been reached and court action is likely to go ahead following the pre-trial process.
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