A vet and her friend have been ordered to pay $660,000 in legal costs after losing a defamation case against a dog owner and a pet detective. 

Ainslee Munro and agronomist Lauren Marchant lodged the case at the NSW District Court after they claimed they were falsely linked to the disappearance of a five-month-old puppy.

Judge Judith Gibson ordered on April 24 that the two women pay $629,000 to the pet detective and $30,000 to the dog owner Shannon Wheeler.

The judge found they had stolen the puppy, which was a high-value Cavalier King Charles spaniel named ‘Teddy’, and taken him to a breeder.

In a heartbreaking twist, the dog has never been found after it escaped from the pair.

‘Teddy’ was reported missing when Ms Wheeler returned home in Young, NSW, on June 9, 2020. 

In a post to a Facebook group at the time, Ms Wheeler said: ‘(The back) gate could have been opened any time between 9.30am and 7pm. We are very worried.’

She then found CCTV images of two women walking down the street with a small black dog on the day of the incident and posted them on social media.

Beautician Shannon Wheeler (pictured) was horrified to discover that beloved family dog Teddy was missing when she arrived home in June 2020

Beautician Shannon Wheeler (pictured) was horrified to discover that beloved family dog Teddy was missing when she arrived home in June 2020

Social media users identified one woman as Munro, who had worked with Greyhound Racing NSW, The Sydney Morning Herald reported.

An investigation by Ms Wheeler and pet detective Anne-Marie Curry ensued as they looked into Munro and her friend Marchant.

Ms Wheeler, a beautician, then shared a ‘name and shame’ social media post tying them to Teddy’s disappearance but, within 24 hours, she and Ms Curry were served concerns notices.

Marchant and Munro claimed the posts and comments painted them as ‘criminals, dog thieves, (and) liars’.

But the defamation case was dismissed in NSW District Court by Judge Gibson in February after she found evidence supporting the allegation the pair stole Teddy.

‘The intention to deprive the true owner was more or less instantaneous with their recognition of the value of Teddy,’ Judge Gibson found. 

Teddy was a black and tan male, non-desexed Cavalier King Charles, with puppies  valued from $1,000 to $3,000 on Gumtree.

The court heard Munro and Marchant did not take Teddy to a pound when found him on the street, news.com.au reported.

In CCTV footage, obtained and shared on Facebook by Ms Wheeler, users identified one of the women seen with a small dog on the day Teddy went missing as the vet Ainslee Munro

In CCTV footage, obtained and shared on Facebook by Ms Wheeler, users identified one of the women seen with a small dog on the day Teddy went missing as the vet Ainslee Munro

They instead drove to a former colleague’s home who was a licensed microchipper and Cavalier King Charles breeder. 

Teddy jumped out of the car and escaped. He has never been found.

Judge Gibson told the court she was ‘comfortably satisfied’ Munro took Teddy to the breeder ‘namely to put Teddy into his backyard’. 

‘I am comfortably satisfied that she did so for the purpose of seeing if he would like to keep Teddy,’ she said.

She added Munro took Teddy there knowing the ex colleague had the ‘expertise and equipment to remove and replace Teddy’s microchip if required’.

Judge Gibson also said that, if Ms Wheeler and Ms Curry had not proved the pair stole the dog, she would have ordered damages of $10,000 to Munro and $15,000 to Marchant.

But as a result of the judge’s findings, it was the pair who were ordered to pay $629,000 to Ms Curry and $30,000 to Ms Wheeler who self-represented herself, meaning her legal costs were lower.

The demand has been stayed as Munro and Marchant filed at the Court of Appeal on May 13.

Daily Mail Australia has contacted all of the parties for comment.

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