Record €900,000 award in drugs libel case

A HIGH Court jury has made the biggest ever award of damages for libel here - €900,000 - in a case in which a man sued the Sunday…

A HIGH Court jury has made the biggest ever award of damages for libel here - €900,000 - in a case in which a man sued the Sunday World over an article describing him as a "Traveller drug king".

The jury of seven women and five men found that Martin McDonagh, a father of eight from Cranmore Drive, Sligo, was libelled by the Sunday World in an article published on September 5th, 1999, midway through Mr McDonagh's seven-day detention in connection with a major seizure of drugs at Tubbercurry, Co Sligo.

Mr McDonagh denied any involvement with the importation and was released without charge.

In addition to alleging he was a "drug king", the Sunday World article referred to Mr McDonagh as "The Shark" and alleged he was involved in moneylending and had masterminded the importation of the largest ever amount of cannabis and ecstasy into the west of Ireland in 1999.

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The newspaper had denied libel and had defended the case on the basis that the words complained of were true in substance and fact.

Following a five-day trial, the jury was asked to decide whether the newspaper had proved, among other matters, that he was (1) a drug dealer and (2) a loan shark. They had replied "No" in both cases.

In response to two other questions, the jury found the newspaper had proven Mr McDonagh was (3) a tax evader and (4) a criminal.

On the basis of those answers, reached after two-and-a-quarter hours' deliberation, the jury awarded Mr McDonagh damages of €900,000 plus costs.

The previous highest libel award went to millionaire businessman Denis O'Brien in November 2006 over an article in the Irish Mirror.

After the jury delivered its verdict, Mr McDonagh hugged members of his family.

Hugh Mohan SC, for the Sunday World, said he would be making an application for a stay on the award pending an appeal. Mr Justice Eamon de Valera said he would hear that application in a week's time.

During the trial, the court heard the Sunday World published the article while Mr McDonagh was being held for seven days at Manorhamilton Garda station for questioning.

He told the court the only reason he had been arrested was because he happened to be "on the beer" with two of the people who were ultimately convicted in connection with the Tubbercurry drug seizure, which at £500,000 worth of ecstasy and cannabis was and remains the biggest haul in the northwest.

He was released after seven days of questioning, never rearrested and never charged. Mr McDonagh said he had made his money from a successful rubbish collection business he operated in England.

The money which went through his accounts - estimated by his accountant at £419,000 but put by the Criminal Assets Bureau at £665,000 - was from that business and from a pub in which he was involved in in Sligo for a time.

He said he had made a €100,000 settlement with Cab in 2004 but that had nothing to do with crime.

He said the settlement arose over his failure to pay tax and for signing on the dole while he was working. He said he used the shop, which was worth €225,000 in 2004 when he sold it, to fund the settlement with Cab.

A Cab officer told the court the bureau had pursued Mr McDonagh for the €100,000 because they were satisfied he was involved in "substantial" drug trafficking and in a dole fraud in England.

The court also heard from gardaí who had interviewed him during his seven days of detention following the drug seizure.

In interview notes read by the gardaí to court, Mr McDonagh told officers it was his brother Michael who had organised the importation of the drugs and that he (Michael) was the "Mr Big."

Mr McDonagh had denied he himself was involved in drug dealing.