The appellants, heating and air conditioning businesses, sued the Better Business Bureau (BBB) for defamation after the BBB assigned them a 'D-' rating on its website.
The trial judge dismissed the action, finding the rating was not defamatory and was protected by fair comment and qualified privilege.
On appeal, the Divisional Court held that the trial judge erred in law by failing to determine the plain and ordinary meaning of the rating, which was clearly defamatory.
The court also found that the BBB did not enjoy qualified privilege for general ratings published to the public.
The appeal was allowed, the trial judgment set aside, and the matter remitted for a new trial on the issues of fair comment, malice, and damages.