Yesterday the slander trial launched by the Glendale Hills construction company against Skizb Media Center, the parent company of the newspaper Zhamanak, got underway in a Yerevan courthouse.

Glendale Hills is suing the paper for 2.5 million AMD, arguing that Zhamanak slandered the company's name and reputation by reporting that apartments built by the company in Gyumri for families left homeless by the 1988 earthquake were of poor quality and that residents were issuing complaints.

The construction company, which was taken to task by President Sargsyan during a visit to the new apartments, also argues that the paper was incorrect when it stated that some of the flats were on the verge of collapse and that only plaster had fallen from some of the ceilings.

Glendale Hills also rejects the paper's claim that it offered up to $1,000 in hush money to residents to keep quiet about the defects.

In a surprise move yesterday, Nikolai Baghdasaryan, attorney for the newspaper, motioned the court to put a halt to the trial. He argued that last year's legislative bill decriminalizing slander and defamation was flawed, thus leading to many "grey" areas for litigation.

Mr. Baghdasaryan motioned the court that the RA Supreme Court be called in to rule on the constitutionality of the legislation in question.

Anahit Sardaryan, the attorney representing Glendale Hills, then asked the court for time to prepare a response to the defense motion.

Mr. Baghdasaryan also petitioned the court to throw out the plaintiff's demand for 500,00o in compensation for incurred legal fees. He presented the financial situation of the newspaper and then cited a ruling by the RA Chamber of Advocates putting a ceiling of 200,000 AMD for defamation defense legal fees and 300,000 for slander defense.