The plaintiff, a former top-performing mortgage development manager, sued the defendant bank for defamation after he resigned during an investigation into fraudulent mortgage applications.
The bank reported him to the Canadian Bankers Association's SIFT database, falsely stating he had knowingly submitted fraudulent documents, which caused three prospective bank employers to withdraw job offers.
The court found the bank failed to prove the defence of justification, as there was no evidence the plaintiff knew of the fraud.
The defence of qualified privilege also failed because the bank lacked grounds to report him under the database's criteria, and its failure to retract the alert for seven years constituted malice.
The plaintiff was awarded $850,000 in total damages, including $200,000 in punitive damages.