Diverse Transportation v. Chen
1486151 ONTARIO LIMITED o/a DIVERSE TRANSPORTATION
ZHOU CHEN
Law Firm / Organization
Cambridge LLP

2025 ONSC 554 (January 27, 2025)

  • Zhou Chen, a former employee of Diverse Transportation, claimed unpaid wages and obtained a garnishment order, receiving approximately $20,000.
  • Chen later demanded an additional $1,116.55 in interest and vacation pay.
  • When Diverse disputed the claim, Chen threatened to expose alleged fraudulent and unsafe business practices unless he was paid.
  • He followed through by emailing defamatory accusations to Diverse’s largest customers, linking his claims to his demand for payment.
  • The court found that his allegations were not matters of public interest but a means of pressuring Diverse into paying him.
  • Chen’s anti-SLAPP motion was dismissed, allowing Diverse’s defamation claim to proceed.

2025 ONSC 1552 (March 6, 2025)

  • The court reviewed costs following the dismissal of the anti-SLAPP motion.
  • Chen persisted in his defense despite clear evidence refuting his allegations.
  • The court found his conduct amounted to extortion and exercised discretion under section 137.1(8) of the Courts of Justice Act to award costs.
  • Chen was ordered to pay Diverse $50,000 in costs.

Outcome

  • Diverse’s defamation lawsuit will proceed.
  • Chen’s anti-SLAPP motion was dismissed.
  • Chen must pay $50,000 in costs to Diverse.
Superior Court of Justice - Ontario
CV-22-00688400-0000
Labour & Employment Law
$ 50,000
Plaintiff