In The Catalyst Capital Group Inc. v. Veritas Investment Research Corporation, the parties were involved in the venture capital industry. The plaintiff company alleged that the defendants had attempted to damage the plaintiff with a “short selling” strategy. The plaintiff claimed damages for conspiracy to injure, intentional interference with economic relations, and defamation.
As part of the defamation claim, the plaintiff alleged that defamatory material was published by one of the defendants to known individuals on known dates as well as to to unknown people on unknown dates. The defendants brought a motion to strike the allegations of unknown publication, arguing that it was impermissible in a defamation claim to plead publication to unknown people on unknown dates. The motion judge agreed, and ordered that specific allegation be struck out.
On appeal, the Court of Appeal disagreed. The Court of Appeal acknowledged that defamation claims are typically held to a high standard, requiring detailed pleading of material facts. However, the Court stated that the case law had evolved to be more flexible where the plaintiff is unable to provide full particulars of defamation. The Court of Appeal found that in Catalyst, the Statement of Claim set out a “coherent body of facts” in relation to all of the claims, including defamation. The plaintiff had pleaded instances of publication to known persons on known dates. The defendant therefore knew the time-frame within which the allegedly defamatory statements were said to have been made, such that the allegations could not be said to be unduly vague. The Court found that the plaintiff had “pleaded all of the particulars available to [them] with the exercise of reasonable diligence”. As a result, the Court of Appeal allowed the allegation to stand.
The lawyers at Gilbertson Davis have experience in defamation proceedings, in respect of defamation alleged to have been committed in writing (libel) or orally (slander). Please contact us for an initial consultation.
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