The head of a Dunedin ratepayers group says the city council's decision to pay out $29,000 in a defamation case taken against the mayor was the right move.
Former Otago Rugby Union chair Wayne Graham and former vice-chair Laurie Mains were seeking more than $1 million in damages for critical comments made by mayor Dave Cull after the union was saved from liquidation in March this year.
In an out of court settlement, they have now agreed to a payment towards their legal costs - which the council will cover on behalf of Mr Cull.
The chair of the Dunedin Ratepayers and Householders Association, Lyndon Weggery, says it is good the matter has now been dealt with and the council did the right thing in standing by the mayor.
