Default Judgment Overturned in Landmark Defamation Case Against National Reserve Bank of Tonga and Journalists
In a significant legal development, the Lord Chief Justice has granted leave to set aside the default judgment previously issued against the National Reserve Bank of Tonga, its Governor, and three journalists in a defamation case brought by the Tonga Development Bank (TDB), its CEO ‘Emeline Tuita, and Board Chairman Penisimani Vea. The original ruling, issued on September 23, 2024, had awarded over $20 million pa’anga in damages—the largest sum ever in a Tongan civil case.
The lawsuit stemmed from the publication and broadcast of a leaked letter written by the Reserve Bank Governor to the Minister of Finance on May 17, 2024, concerning regulatory actions against the TDB, its CEO, and Chairman. The plaintiffs claimed the exposure of the letter caused financial and reputational damage. The judgment in default was entered after the defendants allegedly failed to file their defence within the required 28-day timeframe.
Judgment Set Aside, But with Conditions
In his ruling on January 27, the Lord Chief Justice emphasized that while the court’s procedural rules must be strictly followed, justice demands that substantial cases be argued on their merits rather than resolved through default.
He made it clear that failing to file a defence in time without a credible excuse—such as “time ran away,” as was claimed by some defendants—was insufficient justification. However, he ruled that the case should proceed to trial in the public interest, allowing all parties to present their arguments and evidence.
The judgment was set aside on the condition that the defendants cover the legal costs of the application before the matter proceeds further.
Tevita Motulalo Excluded—Filed Defence on Time
Notably, journalist Tevita Motulalo was excluded from the cost order. His legal representatives successfully argued that he had, in fact, filed his defence on time, making him the only defendant to have done so. The court acknowledged that, given the current state of the judiciary’s document-handling processes, it was possible that his filing had been misplaced, but his affidavit evidence supported his claim of timely compliance.
Despite his exclusion from the cost order, Motulalo remains a defendant in the broader case, which will now proceed to trial.
Case to Proceed in Full Trial
The ruling confirms that the dispute between TDB and the National Reserve Bank is far from over. The plaintiffs must now prove their claims in a full trial rather than rely on a default judgment. The court will scrutinize whether the publication of the letter constituted defamation or whether it was a matter of public interest and journalistic freedom.
