In a 37-page reserve decision released yesterday, District Court Judge Paul Kellar said Mr Edminstin defamed her when he called her a ''lying slut'' at a community board meeting in October 2011.
He ordered Mr Edminstin to pay Mrs Mitchell $40,000, plus costs, saying a report about the meeting published in the Southland Times, which included the remark, would have led to some readers forming an adverse view about Mrs Mitchell's reputation.
At a court hearing in June, Mr Edminstin did not deny saying the words but said they were a private comment to his good friend Linda Bell, who was beside him at the back of the room.
Contacted yesterday, Mr Edminstin said he was disappointed about the decision but had nothing more to say atthe moment because his lawyer, Bruce Corkill QC, of Wellington, was considering an appeal.
Mrs Mitchell said she was ''completely satisfied'' with the decision and expected the court to ensure Mr Edminstin paid her.
''I'm very pleased this has finally been sorted after what was a very stressful time.''
Mrs Mitchell said she did not know exactly how much her costs were, only that they were ''substantial''.
If her lawyer, Roger Eagles, and Mr Corkill could not agree on the amount to be paid to cover costs, the judge would decide, she said.
Asked what would happen now between herself and Mr Edminstin, Mrs Mitchell said their paths would no doubt cross.
''We will see each other, of course - we live over the fence from each other, more or less.
''But I expect we will each get on with our own business''.