The appellant municipality appealed a trial judgment finding it liable for malicious prosecution and awarding $550,000 in punitive damages to the respondent estate.
The deceased had been wrongfully dismissed from his position as a building inspector, after which the municipality withheld exculpatory evidence from the police, leading to criminal charges of which he was ultimately acquitted.
The Court of Appeal upheld the finding of malicious prosecution, concluding the municipality initiated the proceedings by withholding evidence.
However, the Court allowed the appeal on punitive damages in part, reducing the award to $450,000 because the trial judge failed to account for the punitive elements of the substantial compensatory damages and costs already awarded.
