Trader secures $20k payout
A motor-vehicle trader has been awarded $20,000 in damages after winning a defamation case about false comments made about him and his business on Facebook.
John Murphy, trading as Cornwall Motor Company, took legal action after it was claimed on the social-media platform that he had stolen a car.
The matter was connected to a dispute over the sale of a 2009 Toyota Yaris and comments posted by Jinzhen Cai, also known as Jasmine Cai.
The high court in Auckland ruled the posts had alleged Murphy illegally took possession of the vehicle, according to a recently released judgement following a hearing in October last year.
It was found the posts alleged that Murphy had taken possession of the vehicle illegally, which amounted to theft. That was not the case.
The details about what happened were set out in court documents. It all started on May 18, 2023, when Cai’s partner, a Mr Zheng, sold the Yaris to Cornwall Motor Co in Greenlane for $2,700.
It was then advertised for sale on the business’ Facebook page. Later the same, when Zheng told Cai he had sold the vehicle, she stated she still wanted it and told him to hand it back.
At 4.52pm, Zheng texted Murphy to say their new car was unavailable for some weeks, the registered owner was Cai and they wanted it back.
Murphy replied saying the Yaris had been “committed” and he wouldn’t issue a refund. Text messages were exchanged that night with Murphy sticking to his position.
Zheng remarked they would report the car to the police as stolen. “I will expose your dirty practice to the media and your professional network,” said Zheng. Murphy replied: “Do what you must.”
Cai contacted Murphy stating she hadn’t agreed to sell the Yaris and asked for it back.
At 6.36pm, she phoned 105 to report it stolen. Cai also filed a report online. She said she didn’t know who took it and it had been stolen from her driveway.
Then, at 7.47pm, a comment from an account called Jasmine Cai was posted on the Facebook page. It advertised the Yaris as being for sale.
It stated: “Anyone saw this advertisement be aware this car is illegally in possession by John Murphy. I am registered owner and had never agreed to sell this car. I have reported this car as stolen with the police.”
About an hour later, another comment was put online. “This car has been reported as stolen by John Murphy and will be towed away immediately at your expense.”
The next day, Cai and Zheng went to Cornwall Motor Co with a tow truck. Zheng asked Murphy in Cai’s presence if he had “seen our media coverage”. The police were called. Cai and Zheng left without the Yaris, states the judgement.
On May 26, Murphy filed and served his statement of claim. The Facebook comments were removed later that day.
Cai then informed the police that the Yaris wasn’t stolen and she had sold it to Cornwall Motor Co, the court was told.
Murphy claimed his reputation was seriously damaged by the comments made in this matter. As a registered motor-vehicle trader, he added the false allegations were damaging because consumers wouldn’t buy from his business if was he suspected of trading in stolen cars.
Cai contended she didn’t make the statements and didn’t ask anyone else to do so, reports Stuff. She claimed the statements weren’t defamatory because they simply stated there was an ownership dispute.
Justice Jane Anderson, in her judgement, stated that someone casually reading the comments on Facebook would have believed that Murphy had taken the Yaris.
She added: “It conveys that not only is the vehicle in Murphy’s possession illegally, but that it is Murphy who has stolen the vehicle. For an ordinary reasonable reader, that would make Murphy a criminal.”
The judge was satisfied Cai was involved in posting the comments. “I am satisfied Cai at least authorised and or encouraged the posts to be made whether or not she posted them herself.”
Murphy had sought $200,000 in damages. The judge awarded him $20,000.
