The appellant, a former municipal building official, was wrongfully dismissed and subsequently charged criminally after the municipality reported alleged missing permit fees to the police.
After being acquitted, he sued for wrongful dismissal and malicious prosecution.
The trial judge awarded damages for wrongful dismissal but dismissed the malicious prosecution claim, finding no initiation or malice by the municipality.
The Court of Appeal allowed the appeal, holding that the trial judge erred by applying the high threshold for malice applicable to Crown prosecutors to a private defendant, and by making inconsistent findings regarding the municipality's conduct.
A new trial was ordered for the malicious prosecution claim and the quantum of punitive damages.