The respondent, a criminal defence lawyer, was arrested and charged with criminal harassment following complaints from his estranged wife.
He was acquitted and subsequently successfully sued the investigating police officers and the Crown for negligent investigation in Small Claims Court.
The appellants appealed the trial judge's finding of liability.
The Divisional Court allowed the appeal and dismissed the action, finding that the trial judge erred in law by failing to apply the correct standard of care.
The court held that the officers had reasonable and probable grounds to arrest the respondent and were not required to exhaust all possible avenues of investigation before laying charges.