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The Court of Appeal has dismissed $2 Shop mogul Brian Salmon's defamation case over his company's purchase of a Lamborghini sports car, and ordered him to pay $12,500 costs.
Mr Salmon, who runs the $2 shop brand, appealed against a High Court decision which turned down his defamation claim against Hastings franchisee owner Lynette McKinnon in the Court of Appeal in Wellington last month.
Mr Salmon said an email Ms McKinnon sent him in 2005 regarding the purchase of a Lamborghini implied he had misused funds.
He had told franchise holders the company had bought the car in 2003 for promotional purposes.
Ms McKinnon had suggested selling the car, saying it had done nothing to enhance sales.
She mistakenly said it had been purchased using the advertising fund, to which all franchise holders contributed. The car had actually been bought with $2 Shop Ltd money.
Ms McKinnon apologised to Mr Salmon for her mistake, but did not believe it was defamatory.
Mr Salmon took court action, seeking his legal costs to be paid and a declaration of defamation.
The appeal court said in its decision, released yesterday, that it agreed with the High Court judge's decision that Ms McKinnon's email was not defamatory and dismissed Mr Salmon's appeal.
It said Mr Salmon's proceedings were not motivated by a desire for vindication, but rather with the intention of punishing Ms McKinnon.
"Such inference is supported by Mr Salmon's overblown reaction to what at worst was no more than a very minor and quickly abated storm in a teacup."
- NZPA
