2017 September 8

Montour v. Beacon Publishing Inc. (c.o.b. Frontline Safety & Security), 2017 ONSC 4735

The Ontario Superior Court of Justice dismissed an application to summarily dismiss this $27 million defamation lawsuit as a SLAPP pursuant to s. 137.1 of the Courts of Justice Act.  The plaintiff company, the largest Canadian exporter of tobacco, manufactured it on first nations reserve territory in Ontario and also sold tobacco to “Indians” and “bands” located on “reserves” within the meaning of the Indian Act, RSC 1985, c. I-5.  It did not sell tobacco to retailers outside reserves and did not sell to consumers who are required to pay taxes on it.  The defendant, a small company operating from the basement of a home, published a three-part article in 2016, in both hard copy and electronic format.  Although the impugned publication concerned a matter of public interest, the Court concluded the claim had substantial merit, as the words complained of were clearly defamatory.  The court held that the due diligence to verify the serious defamatory allegations was “non-existent,” that alleged defences of qualified privilege and fair comment were inapplicable, and that damages were presumed in circumstances where the publication “was targeted at the plaintiff’s suppliers and the content remains on the Internet.”  The Court concluded the plaintiffs had “shown credible and compelling evidence of harm which appears reasonably likely to be proved at trial…”