Gunns defamation case against leading Hobart physician Dr Frank Nicklason was before the Victorian Supreme Court again on 29 May 2008. Dr Nicklason was one of the Gunns20 previously accused of being part of a conspiracy against Gunns.

After three of Gunns’ statements of claim were struck out by the court they dropped Dr Nicklason from that case. The next day he was sued again by Gunns for defamation. Gunns’ statement of claim alleges Dr Nicklason said:

“The Gunns woodchip pile on the Burnie wharf has developed into a health risk. Conditions at the bottom of the stack are right to breed the Legionella bacteria. The bottom of the woodchip piles I’ve been told, or at least one of them hasn’t been moved in seven years so it will be compost and it will almost certainly have Legionella and fungal organisms which can be blown across the town”

Gunns claims that this was understood to mean that Gunns was responsible for almost certainly exposing the people of Burnie to risk of Legionella, and that Gunns showed disregard for the health of the people of Burne. Gunns is seeking general and exemplary damages against Dr Nicklason for making that statement.

The issue before the court on 29 May 2008 was whether it was necessary for Dr Nicklason to spell out in his defence the process of logic by which he asserted that compost at the bottom of woodchip piles which had not been turned over in seven years would almost certainly contain Legionella and fungal organisms.

The Court ruled that Dr Nicklason must spell that out for Gunns. Dr Nicklason was also ordered to pay the costs of the application.