A landmark defamation judgment, awarding over $20 million pa’anga in damages to the Tonga Development Bank (TDB) and its executives, has been overturned by Lord Chief Justice Bishop.
In a ruling late last month, the Lord Chief Justice Bishop set aside the default judgment issued in September 2024, citing the defendants’ failure to file a defense within the required 28-day period.
The damages, the largest ever awarded in a Tongan civil case, were initially granted following a defamation suit filed against the National Reserve Bank of Tonga, its Governor, and three journalists.
The case stemmed from a leaked letter written by the Reserve Bank Governor in May 2024, detailing concerns over TDB’s leadership and actions taken against its CEO, ‘Emeline Tuita, and Board Chairman, Penisimani Vea. The plaintiffs claimed the publication of the letter caused significant financial and reputational harm.
Lord Chief Justice Bishop emphasized that failure to adhere to procedural rules cannot be overlooked, particularly in high-stakes cases. He rejected the defendants’ excuse of “time running away” as insufficient.
However, he allowed the case to proceed, affirming that it is in the public interest for the matter to be fully examined in court.
Journalist Tevita Motulalo, who complied with the time limits for filing, was excluded from the cost order, while the others must cover the application’s costs before the trial proceeds.
The case is set to proceed in full trial, with the plaintiffs required to prove their defamation claims.
This is the latest amid ongoing dispute between the Development Bank and the Reserve Bank. Last year the Supreme Court overturned the Reserve Bank order to remove Development Bank’s CEO and chairman pending the resolution of this matter at trial.
