The appellants appealed a trial judgment awarding the respondents general damages of $75,000 and punitive damages of $75,000 for defamation.
The trial judge found that the appellant, a City manager, made defamatory statements about the respondents' business during a meeting with a supplier representative, acted maliciously in response to complaints the respondent had made about him, and abused his position as a public officer.
The Court of Appeal upheld the findings of defamation, malice, and abuse of position, but set aside the punitive damages award, finding that the trial judge failed to analyze whether the compensatory damages were adequate to achieve the objectives of retribution, deterrence, and condemnation.
The appeal was allowed in part.