Cheng v Lok

The case of Cheng v Lok involves a claim for defamation against the defendant, Isabel Lok, who posted a defamatory review about the plaintiff, Gordon Cheng, on Google My Business. Following the entry of default judgment against the defendant, the court was tasked with assessing the damages to be awarded to the plaintiff. The plaintiff, a lawyer, alleged that the defamatory review led to a significant loss of clients and income, impacting his professional reputation and financial standing. The court considered the evidence provided by the plaintiff's accountant, who conducted a detailed financial analysis to quantify the economic loss and loss of goodwill resulting from the defamatory publication.

The primary legal issues before the court were determining the appropriate amount of general damages, including aggravated damages, and assessing the economic loss to the plaintiff's legal practice due to the defamatory review. The court had to evaluate the impact of the review on the plaintiff's client base and income, and whether the damages claimed were reasonable and supported by the evidence. The court also needed to consider the credibility of the evidence provided by the plaintiff's expert witness regarding the financial analysis of the practice.

The court found that the evidence provided by the plaintiff's accountant was credible and reliable, and accepted that the defamatory review had a significant detrimental effect on the plaintiff's legal practice. The court determined that the average gross monthly income of the plaintiff's practice dropped substantially following the publication of the review, resulting in a net trading loss for the first four months after publication. Based on the financial analysis, the court concluded that the plaintiff had suffered an economic loss of approximately $190,000 for the six-month period following the review. In addition to the economic loss, the court awarded damages for aggravated damages, bringing the total damages to $750,000. The court also ordered the defendant to pay the plaintiff's costs of the action on an indemnity basis.

In summary, the court found that the plaintiff was entitled to damages of $750,000, including $500,000 for economic loss and $200,000 for aggravated damages. The defendant was ordered to pay the plaintiff's costs of the action on an indemnity basis, to be agreed or taxed.