Defamed nightclub boss Martha Tsamis seeking $350k in damages
The boss of Inflation nightclub wants $350,000 after a former top cop defamed her. But lawyers argue she has no reputation left to damage and should get nothing.
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A nightclub boss defamed by a top cop is seeking up to $350,000 in damages — but defence lawyers say she should get “zero” compensation because she had no reputation left to damage.
After successfully arguing media comments by former assistant commissioner Brett Guerin had hurt her standing in the community, Inflation manager Martha Tsamis returned to court to argue how much compensation she should receive.
But lawyers for the state of Victoria said that because a jury had found some of the comments made by Mr Guerin were in fact true, the effect the defamatory comments had on her reputation was reduced to “almost vanishing point”.
Paul Hayes QC, for the state, told a Supreme Court the imputations that were justified were far more serious than those that were deemed false and defamatory.
A jury of six last month ruled Mr Guerin in 2014 defamed Ms Tsamis when he told the Herald Sun she operated her King St venue in a way that was conducive to violence and drunkenness, allowed minors to enter and had jeopardised the health of her patrons.
However, the jury found Mr Guerin was justified when he labelled the popular nightclub a “honey pot” for drug dealers because it was a true and fair comment.
The jury also agreed with the assertion that the club was run in a way which allowed drug overdoses and trafficking in and around the venue.
Mr Hayes said that the comments about letting minors into a club would pale into insignificance compared to allegations of drug trafficking.
And the average Australian reader would not be too troubled reading about drunkenness and violence at a nightclub, he said.
Mr Hayes said if his honour was to award any damages the amount should be between “nil and $10,000”.
Barrister Timothy Sowden, for Ms Tsamis, said his client’s reputation was “unblemished” before Mr Guerin’s comments were published.
Mr Sowden said they were still waiting on an apology from Mr Guerin and the state.
In earlier evidence, Ms Tsamis said she felt devastated, distraught and betrayed by the comments made in the article and was unable to get out of bed for three days.
Mr Sowden said Ms Tsamis was seeking between $200,000-$350,000 in damages — with a percentage deducted for the justified imputations.
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During the three-week trial, Ms Tsamis did not waver on her denials her club allowed drug dealing, underage drinking or violence.
She told the jury she did “as much as we possibly could” to keep drugs out of the club.
After three days of deliberation, the jury ruled in favour of Ms Tsamis in four of her defamation claims and dismissed four.
Mr Guerin’s comments came shortly after police applied to restrict Inflation’s 24-hour liquor license based on claims of 59 underage drinking, violence and drug “incidents”.
Ms Tsamis said the incidents were never brought to her attention.
The police application was withdrawn 12 months later.
Justice John Dixon will deliver his judgment at a later date.