The appellants, the Better Business Bureau of Ottawa-Hull Incorporated and Better Business Bureau of Ottawa-Hull Inc., appealed a Divisional Court decision that had allowed an appeal by Walsh Energy Inc. in a defamation action.
The trial judge had dismissed the defamation claim, finding that the BBB's D- rating assigned to Walsh was not defamatory and was protected by the defence of fair comment.
The Divisional Court reversed, finding the D- grade was defamatory and ordering a new trial on the issues of fair comment, malice, and damages.
The Court of Appeal allowed the BBB's appeal, finding that the Divisional Court erred in ordering a new trial on fair comment, as the record was sufficient to establish the defence.
The court also reduced the trial judge's costs award from $348,135.96 to $175,000 as being excessive and contrary to the fundamental objective of access to justice.