Executive Summary – Key Legal & Evidentiary Issues

• Adequacy of pleadings: Whether the plaintiff sufficiently pleaded special damages tied to a lost employment opportunity.

• Proof of economic loss: Determined if the evidence substantiated a specific, provable pecuniary loss beyond general reputational harm.

• Assessment of special damages: Evaluated the trial judge’s calculation of lost income and whether it was inordinately low.

• Overlap of damages: Considered the risk of double recovery for the same loss in two separate but related defamation cases.

• Mitigation by apology: Addressed whether a late public apology could reduce damages under common law and the Libel and Slander Act.

• Reduction under prior recovery: Applied section 11 of the LSA to account for prior compensation for similar defamatory content.

Facts of the Case

Stephen B. Pineau, a former CEO in the security technology firm Viscount Systems Inc., brought a defamation suit against Glacier Media Inc., its publication Business in Vancouver (BIV), and journalist Tyler Orton. The case stemmed from a January 2015 BIV article that recapped a civil claim Viscount had filed against Pineau. The article alleged he misused over $67,000 in corporate funds—a claim Pineau denied and countered with a wrongful dismissal lawsuit.

Soon after, a nearly identical article was published by a different outlet, prompting Pineau to file two separate defamation actions—first against KMI Publishing and then against Glacier Media.

In the earlier case (against KMI), Pineau received $120,000 in general damages, but no special damages were awarded due to lack of evidence proving financial harm. However, when he later pursued Glacier Media, new evidence emerged—especially from a former business associate, Mr. Leach—supporting Pineau’s claim that he had lost a lucrative employment opportunity due to the defamatory publication.

The trial judge in the second case awarded:

• $120,000 in general damages, reduced by 40% (due to an apology and prior compensation)

• $180,000 in special damages for lost income, with no reduction for mitigation

Both sides appealed: Pineau argued the special damages were too low; Glacier Media argued they should not have been awarded at all.

Arguments and Court’s Analysis

• Pleadings and Special Damages: Glacier Media argued Pineau hadn’t sufficiently pleaded the lost employment opportunity as a basis for special damages. The Court of Appeal disagreed, finding the pleadings—though sparse—combined with the affidavits and trial record, provided enough basis to proceed.

• Proof of Economic Loss: Unlike in the KMI trial, Pineau presented more concrete evidence in the Glacier case. Mr. Leach testified he had planned to offer Pineau a role with projected earnings over $150,000/year, but withdrew after reading the BIV article. The Court found this persuasive and sufficient to prove a real, quantifiable financial loss.

• Assessment of Damages: The trial judge’s award of $180,000 was found to be inordinately low considering the projected long-term income. The Court substituted this amount with $360,000, then reduced it by $30,000 under s. 11 of the Libel and Slander Act to reflect damages already received in the KMI case.

• Apology and Mitigation: Although Glacier Media issued a written apology in 2022, it came seven years after publication and five years into litigation, limiting its mitigating effect. The apology did not impact special damages, but it was partly credited in reducing general damages.

• Avoiding Double Recovery: The Court carefully balanced compensation to prevent overlap. While the same employment opportunity had been referenced in both cases, it was only factored into general damages in the earlier case and proven with specificity in this one—justifying separate compensation, but with an appropriate reduction.

Outcome

The British Columbia Court of Appeal:

• Increased special damages from $180,000 to $360,000, then reduced to $330,000 to account for overlap with the prior award

• Upheld the trial judge’s 40% reduction of general damages, resulting in a final general damages award of $72,000

• Total compensation to Pineau in this case: $402,000