A statement issued by General Jones in response denied Stephenson had performed an interview with the commander of a crisis response unit in Afghanistan. It also stated that he had never entered the base where the meeting took place.
Three articles written by Stephenson had been based on this interview.
Since hearing evidence from Stephenson, General Jones' lawyer Hugh Rennie QC said the general had accepted the journalist entered the base and conducted the interview.
Stephenson's lawyer Davey Salmon told the jury in his closing submission today his client's integrity had been attacked by an organisation with special privilege in New Zealand.
Mr Salmon said Stephenson had been defamed by the statement, which called into question his integrity and reliability as a journalist.
"For a journalist, the suggestion that you've made up an interview ... goes to the the heart. It's a dagger through the heart.
"This is about putting right someone saying something bad, especially when they won't take it back or make a statement.''
Mr Rennie told the jury the case was about money and the statement had not resulted in any injury or losses to Stephenson or his career.
The jury will continue deliberating tomorrow.