I found this story on @1890s News' twitter account here. The original source was "Scissors and Moustaches" Reynolds's Newspaper, March 14th, 1897.
For those who have difficulty reading this article clipping, I will transcribe it below:
"Scissors and Moustaches"
"In the Hull County Court an auctioneer named John Sylvester claimed £10 damages from Henry Luvaggi for having cut off one end of his moustache.
"His Honour, in giving judgment, said there was no doubt that an assault had been committed, but, unfortunately, the plaintiff having received the assault, the defendant then volunteered to sacrifice a portion of his own moustache as a sort of mitigated penalty for the loss the plaintiff has sustained. The plaintiff accepted the situation and cut off a portion of defendant's moustache. Curiously enough the point involved took him back to a very old case, indeed, in Dyers: —
"'Whenever the plaintiff consented to receive and has actually received satisfaction and recompense for the injury he has sustain, the cause of action is discharged, although the satisfaction and recompense was not one-hundreth part of the value of his loss.'
"In this case the fraction of satisfaction was one twenty-seventh part. (Laughter.)
"The verdict would therefore be for the defendant, without costs."
What Luvaggi didn't tell the court was that he was about to shave off his moustache ANYWAY, so he found a way to be a total jerk AND get a free shave. At least that's what I hope really happened.