Used car dealer John Murphy claimed $200,000 damages for defamation after posts on a Facebook page for his Auckland business Cornwall Motor Company claimed a Toyota Yaris on his yard offered for sale was stolen. He was awarded $20,000 damages, with Justice Anderson stating a lesser award of token damages would have been appropriate but for the conduct of previous Yaris owner Jasmine Cai.
Jinzhen Cai, also known as Jasmine Cai, leapt into action after learning spouse Zheng Ping had sold her Yaris to Mr Murphy in early 2023 for $2700.
The High Court was told Ms Cai told her spouse to get it back. There were plans to sell the Yaris, but not until a replacement vehicle arrived; expected in a few weeks.
Evidence was given of Mr Murphy rebuffing attempts by Mr Zheng to recover the car, with Mr Zheng then threatening to report the car stolen to the police.
Ms Cai followed up with a text to Mr Murphy saying she had not agreed to the sale and demanding return of her Yaris.
Within fifteen minutes of the text, she reported to police the car had been stolen, later stating the car had been stolen from her driveway.
An hour later, a posting on Mr Murphy’s Cornwall Motor Facebook page advertising sale of the Yaris stated the car offered for sale had been stolen. This post came from an account named Jasmine Cai.
In the High Court, Justice Anderson subsequently ruled this Facebook post defamatory.
It implied Mr Murphy is a criminal, dealing in stolen vehicles.
No crime had been committed; it was a commercial dispute over ownership.
Ms Cai denied she was responsible for the Facebook post.
Justice Anderson ruled Ms Cai had authorised or encouraged the post. She was responsible for the content.
The post remained up for eight days. Mr Murphy said he did not take it down immediately because he did not know how to delete posts from his Facebook account.
The extent of publication is relevant when assessing damages.
Justice Anderson said it cannot be assumed how many followers linked to Mr Murphy’s Cornwall Motors’ Facebook account in fact read the defamatory post.
Mr Murphy was awarded $20,000; compensation for damage to his personal reputation.
Any claim for damage to his business has to be brought as a separate case by his business Central Car Co Ltd, Justice Anderson said. Cornwall Motor Co is the trade name for Mr Murphy’s Central Car business.
Murphy v. Cai – High Court (17.12.24)
25.049