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ARTICLE · 27 NOVEMBER 2024

Defendant Business Competitors Liable For Defamation Campaign Based On Common Design (Valley Traffic Systems Inc. V. Malak)

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Defamatory publications that are intended to harm a business competitor may give rise to substantial damages, as shown by the decision of the Court of Appeal for British Columbia in Valley...

CanadaLitigation, Mediation & Arbitration
James R.G. Cook
James R.G. Cook
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Defamatory publications that are intended to harm a business competitor may give rise to substantial damages, as shown by the decision of the Court of Appeal for British Columbia in Valley Traffic Systems Inc. v. Malak, 2024 BCCA 370 (CanLII).

The defamation action was commenced by five corporations known as "The Ansan Group" and their owner (Malak), against a competitor, Valley Traffic Systems (VTS), and its President and Vice-President. The defamatory statements at issue were authored by a former employee of The Ansan Group (Hanna) who had a bitter falling out with Mr. Malak and his companies in 2011.

In late 2011, BC Hydro intended to request proposals for a large traffic control services contract in BC. Following his fall out with The Ansan Group, Mr. Hanna approached VTS, as the two competitors awaited BC Hydro's announcement of the tender process for the contract.

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