The plaintiff, Kenaidan Contracting Ltd., brought a defamation claim against Lancaster Group Inc. and its officers for statements made in an open letter to the City of Hamilton and subsequent media interviews regarding alleged mismanagement of a Pan Am Games construction project and unpaid invoices.
The defendants brought an anti-SLAPP motion under section 137.1 of the Courts of Justice Act to dismiss the defamation claim.
The court found that the defendants' expressions related to a matter of public interest.
While the plaintiff's defamation claim had substantial merit, the defendants successfully demonstrated valid defences of justification and fair comment regarding the alleged mismanagement and outstanding payments.
The court also found that the harm suffered by the plaintiff was not sufficiently serious to outweigh the public interest in protecting the expression, especially considering the plaintiff's prior self-inflicted reputational damage and the nature of the allegations.
The motion to dismiss the defamation proceedings was granted.