In defamation proceedings under s 38(2)(a) of the Defamation Act 2005 (SA), a defendant's insistence on confidentiality as a condition of settlement will usually be considered unreasonable, as it deprives the plaintiff of the vindication of reputation that public knowledge of a settlement provides. Where a defendant succeeds on some but not all imputations, the 'interests of justice' exception in s 38(2) may justify a proportionate reduction in the quantum of indemnity costs rather than denial of indemnity costs altogether.
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