The Chaser's Julian Morrow has had a costly day in court, after three judges overturned a defamation ruling in his favour and upheld another finding that he engaged in misleading and deceptive conduct.
Morrow had been awarded $35,000 in damages by the NSW Supreme Court last year, amid a long-term dispute with TV producer and former business partner Nicholas Murray over the cancelled ABC show The Checkout.
But three Court of Appeal judges on Tuesday quashed a finding Murray defamed Morrow when he sent four strongly-worded letters to ABC management.
Murray had become incensed after he found the comedian was renegotiating a new season of the consumer affairs show without him in 2019, after selling his share of the pair's joint TV production venture to Morrow for $50.
The letters, Morrow claimed, contained "injurious falsehoods" that implied he fraudulently deceived Murray by selling his stake in the joint venture.
Murray in one email referred to him as "Lord Voldemort" and threatened to discontinue the popular ABC show Gruen, which he produced, if the broadcaster developed a show with Morrow.
Justice Christine Adamson, delivering the appeal judgment, found that Murray had made out the defence of qualified privilege as the ABC had a commercial interest in negotiations between him and Morrow, and he was entitled to update management about them.
She also found Morrow had not proved his erstwhile business partner was acting with express malice when he sent the emails, as he believed his allegations to be true.
Meanwhile, Morrow failed to appeal a finding he engaged in misleading and deceptive conduct by not informing Murray of his attempts to resuscitate The Checkout.
"His failure to disclose his negotiations with the ABC constituted misleading or deceptive conduct," Justice Adamson found.
His company, The Checkout Pty Ltd, was ordered to pay $500,000 to Murray’s company, Cordell Jigsaw in damages.
Morrow was also ordered to pay Murray's legal costs for both proceedings.
The Checkout ran for six seasons from 2013 to 2018.
Using a satirical sketch-comedy format, the show highlighted misleading, dishonest and unethical practices of well-known brands.