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Substantial indemnity costs awarded after defamation findings involving unfounded allegations of fraud.
Following a successful defamation action in which the defendant’s counterclaim was dismissed, the plaintiff sought costs on a substantial indemnity basis.
The defamatory statements alleged dishonesty, fraud, and untrustworthiness and were disseminated by email to numerous recipients.
The court held that substantial indemnity costs were appropriate where unfounded allegations of fraud and dishonesty seriously prejudicial to reputation were advanced and maintained in pleadings.
However, the court found the amount claimed excessive given modest damages and potential duplication of work between senior and junior counsel.
Costs were fixed at a fair and reasonable all‑inclusive amount.
Summary judgment granted for defamatory email accusing business of dishonesty.
The plaintiff furniture retailer brought a motion for summary judgment in a defamation action arising from an email circulated by the defendant accusing the business of dishonesty and urging recipients to avoid it.
The defendant raised the defence of fair comment and advanced a counterclaim for slander based on communications made by the plaintiff to her employer and father.
The court held that the email was defamatory and that the defence of fair comment was unavailable because the statements were not on a matter of public interest, were not based on proven facts, and were motivated by malice.
The court concluded that there were no genuine issues requiring a trial and that summary judgment was appropriate.
Judgment was granted for the plaintiff with damages fixed at $15,000 and the defendant’s counterclaim dismissed.
