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Rare defamation jury trial ends in $650,000 award B ank of Montreal director Robert Astley was awarded $650,000 after a jury found in May that shareholder rights activist Robert Verdun had defamed him. The award included $400,000 for aggravated damages, making it one of the largest aggravated damages awards in Canadian history. The civil jury rejected Verdun's defenc- es, finding all eight of the statements in question were defamatory and that he had acted with malice. The verdict brings an end to a five-year legal battle between the two men over Verdun's opposition to Astley's appointment to the bank's board. However, it may not be the last chapter in the feud, which dates back to 1999, when Astley was president and CEO of Mutual Life as it converted into the pub- licly traded entity Clarica Life Insurance Co. Clarica later merged with Sun Life Financial Services of Canada Inc. Verdun, a former newspaper publisher from Elmira, Ont., was known for his brash style and confrontational editorials. He often turned up at annual general meet- ings for various corporations to demand greater transparency in board affairs. An interim injunction granted after the jury verdict silenced Verdun from making his claims against Astley. Still, he's hopeful the ban will be lifted, pending a decision from the court which heard arguments and reserved its decision June 6. "I expect this will work out but I can't make any comment," Verdun told Law Times. "I am muzzled." Astley wants to make the injunction permanent. "One of the interesting aspects of this case was the defendant used the share- holder proposal process to make some of the publications that the jury found were defamatory," says Lerners LLP's Brian Radnoff, one of Astley's co-counsel. Under the Bank Act, banks are required to republish shareholder proposals in their own proxy circulars that go to all of their shareholders. "In this case, that gave them very wide publication," says Radnoff. "It's rare for a defamation action to go to trial and it's even rarer for them to go to trial in front of a civil jury and for you to get to the end." Verdun attempted to raise the defences of qualified privilege and fair comment during the trial as well as the newly created defence of responsible communication, but the jury rejected them and found he had acted with malice. Because civil jury trials are such a rarity, Radnoff believes this is the first time one has heard the responsible communication defence since the Supreme Court of Canada created it in December 2009. — MICHAEL MCKIERNAN michael.mckiernan@thomsonreuters.com ATLANTIC LEGAL TELEPHONE DIRECTORY 2011-2012 CONNECT TO THE EAST COAST LEGAL NETWORK Get names, mailing addresses, email addresses and phone numbers for lawyers and law offices in the Atlantic provinces. Compiled by Canada Law Book's renowned directories group, the Atlantic Legal Telephone Directory is your source of essential east coast legal contact information. In addition to up-to-date and accurate listings for lawyers and law offices, you also have quick and easy access to: • • • • Perfectbound • June 2011 One time purchase $36.50 L88804-531 On subscription $36.50 L88804-531-26059 Multiple copy discounts available Prices subject to change without notice, to applicable taxes and shipping & handling. • • • • • • • • law/barristers' societies Canadian Citizenship Courts Courts of Appeal Federal Court of Canada • Government of Canada departments and regional offices incorporated municipalities judicial districts and judicial officials land registration and information services The Associations of Land Surveyors The Law Foundation provincial government departments boards and commissions university law faculties Visit canadalawbook.ca or call 1.800.387.5164 for a 30-day no-risk evaluation CANADA LAW BOOK® www.CANADIAN Lawyermag.com JULY 2011 9 Atlantic - 1/2 island.indd 1 5/5/11 11:47:10 AM ... and much mor e.