Christopher J. Tzekas

The respondent, a lawyer, was defamed by the appellants who published documents falsely alleging he had misappropriated funds intended for a community organization.

The Supreme Court of Canada upheld the trial judge's finding that the publications were defamatory and that the appellants were jointly and severally liable as joint tortfeasors.

The Court rejected the defence of qualified privilege, finding that the appellants had exceeded the limits of the occasion and were motivated by express malice.

The Court restored the trial judge's award of $140,000 in compensatory damages and $325,000 in special damages for loss of business, as well as the award of prejudgment interest for 12.5 years.

The appellants appealed a libel judgment arising from a press conference at which counsel publicly read and commented on contempt allegations against a Crown attorney that were later found to be untrue.

The Court held that the private defamation action did not constitute government action under s. 32 of the Charter, but confirmed that the common law must nonetheless develop consistently with Charter values.

The Court declined to adopt the American actual malice rule, holding that Canadian defamation law appropriately balances freedom of expression with the protection of reputation.

It further held that any qualified privilege attached to the occasion was defeated by the excessive, careless, and high‑handed dissemination of serious allegations.

The jury's awards of $300,000 general damages, $500,000 aggravated damages, and $800,000 punitive damages were upheld.