Billeh Ahmed Hamud

The appellant appealed a trial judgment that dismissed his defamation and related claims against his former employer and awarded him only $17,192.57 for wrongful dismissal, while ordering him to pay $35,000 in costs.

The appellant argued the trial judge erred in her defamation analysis, credibility findings, and acceptance of unpleaded defences.

The Divisional Court dismissed the substantive grounds of appeal, finding no palpable and overriding error in the trial judge's conclusion that the employer's negative reference was substantially true.

However, the court granted leave to appeal the costs award, finding the trial judge erred by applying Rule 49.10(1) instead of Rule 49.10(2) for a defendant's offer to settle, and remitted the costs issue to the trial judge.

The plaintiff, Adam Papp, brought a claim for wrongful dismissal, defamation, and other damages against his former employer, Stokes Economic Consulting Inc., and its president, Ernest Stokes.

The defendants conceded wrongful dismissal without cause, disputing only the quantum of reasonable notice.

The court found that Ernest Stokes' statements made during a reference check, which led to Papp being denied a job, were substantially true and protected by qualified privilege, as Stokes did not act with malice or recklessness.

Consequently, the defamation claim and associated damages were dismissed.

The court awarded Papp four months' reasonable notice for wrongful dismissal, reduced by payments already received.