A businessman has been ordered to pay a Canberra mortgage broker more than $37,000 after damaging his reputation by making "extremely serious" and defamatory allegations.
Benedict Ian Stevens was ordered by the ACT Magistrates Court on Friday to pay Derek Brammall $35,000 in damages over two defamatory emails.
Magistrate Jane Campbell also ordered him to fork out $2025 to cover Mr Brammall's legal costs.
In her decision, Ms Campbell said Mr Brammall was a director of two mortgage brokering companies that traded as Aussie Tuggeranong and Aussie Weston Creek.
Until August 9, 2022, Mr Stevens was also a director of those companies.
In the early hours of the morning on September 22 last year, Mr Stevens sent two emails to people who had business relationships with Mr Brammall.
Ms Campbell said the first one accused Mr Brammall of "engaging in fraud, theft and improper conduct", allegations that had "caused significant damage to the two companies".
The second message stated that Mr Brammall had made fraudulent claims in relation to a lease default.
Mr Brammall commenced defamation proceedings in November last year.
Mr Stevens failed to file a defence and did not attend a hearing conducted earlier this year.
In finding the emails were defamatory of Mr Brammall, Ms Campbell noted mortgage brokers relied on reputations for honesty and trustworthiness when doing business.
"Allegations that [Mr Brammall] has been engaged in fraudulent, unconscionable and criminal activity are extremely serious allegations," the magistrate said.
"I am satisfied that the two emails were likely to cause people to think less of [Mr Brammall]."
Ms Campbell noted evidence in this regard from Mr Brammall's business partner, Karl Michelin-Beard, and the companies' accountant, Allison Scholar.
Both provided affidavits that revealed they had taken the defamatory emails seriously and lost trust in Mr Brammall as a result.
Mr Stevens had not retracted the allegations to either Mr Brammall or the recipients of his emails, who were deliberately selected, Ms Campbell found, "to impugn the plaintiff's business and professional reputation".
The magistrate accepted Mr Brammall's submission that $35,000 in damages was an appropriate amount.
"It clearly demonstrates that the court has found the assertions made by [Mr Stevens] were defamatory and that [Mr Brammall]'s reputation will be vindicated in the eyes of the recipients of the two emails," she said.
