Gold Firm Libelled on Web Sites, Court Rules
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By Tracey Tyler Toronto Star Saturday, June 5, 2004
In a decision legal experts say will "scare the hell" out of Internet users and set back free speech, the Ontario Court of Appeal has ordered a homeless Vancouver man to pay $125,000 in damages for libelling a gold mining corporation on several Web sites. The court also issued a permanent injunction to stop Jorge Lopehandia from defaming the company in cyberspace.
When Barrick Gold Corp. sued Lopehandia for libel last year, the trial judge, Madam Justice Katherine Swinton, concluded his Internet postings amounted to an "emotional, often incoherent" diatribe that no reasonable person would take seriously. She awarded the company a nominal $15,000 for injury to its reputation.
But the appeal court set aside her decision yesterday. In a 2-1 ruling, the court called Lopehandia's campaign of "cyber libel" malicious, high-handed, unremitting, tenacious, vicious, spiteful, "wide ranging in substance, and worldwide in scope."
Lopehandia claims that he and three others nominally owned a Chilean mine site acquired by Barrick. In messages posted on various cyber bulletin boards, he accuses the company of, among other things, fraud, money laundering, and pursuing organized crimes against humanity. "Barrick is DEVIL killer," one line said.
Libelling someone on the Internet is different than defaming him in other media, such as newspapers, the court said yesterday. Lopehandia's use of the Internet made his "blizzard" of messages potentially more damaging -- and more believable -- because of the speed, scope, and blunt anonymous nature of statements on the World Wide Web, the court said.
Lopehandia did not have a lawyer representing him at the trial or when the case came before the Court of Appeal.
Mr. Justice Robert Blair, who wrote yesterday's decision, said Lopehandia's writing style might not be taken seriously in more traditional media, such as newspapers, but there's nothing to suggest it would be laughed off on the Internet, where, as one expert put it "anything goes."
The majority increased general damages to $75,000 and ordered Lopehandia to pay $50,000 in punitive damages as punishment for conduct Blair described as falling into the special category of being so outrageous that it offends the court's sense of decency. The use of the Internet helped to push it into that league, he said.
Reached yesterday in North Vancouver, Lopehandia's son, Jordan, 23, said his father is living in a downtown hostel and has no access to a phone. He believes that people are out to get him, his son said.
Libel law experts found yesterday's ruling deeply troubling.
"This is a decision which will send a chill to users of the Internet," said Toronto lawyer and libel law expert Bert Bruser, who represents the Star. "The Court of Appeal has determined that somehow or other, chatter on the Internet is more deadly than other forms of libel and they did this, it seems to me, without any evidence."
Libel law expert Brian Rogers agreed.
Rogers said he too found it disturbing that "some very strong and pervasive" findings were made about the Internet without hearing from those who might defend how it was used in this case. |