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As I'm reading it, their argument is, 'She absolutely believes this, but because it's so cuckoo bananas that nobody sentient would, it's not defamation'.
-As you can see, Your Honour, my client is not within her right mind and is unfit to stand trial. She must therefore be found innocent by reason of insanity. The defence rests.
-This is a civil suit, not a criminal hearing. Summary judgement found in favour of Dominion, all pleas granted. (hits gavel). Court adjourned.
Doesn't the last line condemn her:
'“In fact,” Powell’s motion reads, “she believed the allegations then and she believes them now.”'?