Julia Anagnostakis

The appellant employer appealed a jury verdict finding it liable for malicious prosecution and awarding over $2 million in damages to a former employee and his wife.

The employer had provided police with surveillance video allegedly showing the employee stealing money, but deliberately withheld exculpatory portions of the video that corroborated the employee's innocent explanation.

The employee was convicted, fired, and lost his grievance arbitration before the exculpatory evidence was discovered, leading to his convictions being quashed.

The Court of Appeal dismissed the employer's arguments that the claim fell within the exclusive jurisdiction of a labour arbitrator and that it had not 'initiated' the prosecution.

The Court upheld the jury's significant awards for general, aggravated, and punitive damages, finding them justified by the employer's callous and malicious conduct over a 13-year period.

A cross-appeal regarding costs was also dismissed.

The appellants appealed the dismissal of their action for misfeasance in public office against the Alcohol and Gaming Commission of Ontario.

The appellants argued the trial judge applied the wrong test and failed to find recklessness or wilful blindness in the respondents' handling of a licence transfer application.

The Court of Appeal dismissed the appeal, finding the trial judge correctly applied the test for misfeasance in public office and his factual findings negating malice and recklessness were supported by the record.

The respondents' cross-appeal on damages and trial costs was also dismissed.