Date: 19980415 Docket: C952513 Registry: Vancouver IN THE SUPREME COURT OF BRITISH COLUMBIA BETWEEN: SOUTHAM INC. and DAVID BAINES PLAINTIFFS AND: GEORGE CHELEKIS THE BULL & BEAR FINANCIAL NEWSPAPER INC. DAVID J. ROBINSON PETER HUNT CANADIAN CORPORATE NEWS INC. MARKET NEWS PUBLISHING INC. and ROBERT SHORE DEFENDANTS REASONS FOR JUDGMENT OF THE HONOURABLE MR. JUSTICE J.F. ROWAN Counsel for the Plaintiff: B. Gibson Counsel for the Defendants: Bryan G. Baynham Q.C. (Market News Publishing & Robert Shore) The Defendants Chelekis & Robinson: Not appearing Place and Date of Hearing: Vancouver, B.C. September 8-12, 1997 [1] This is an action for libel and slander. Libels of the Plaintiff Baines are said to be contained in several articles and a press release written by the Defendant, George Chelekis, published in 1994. An oral statement made by Chelekis at a business seminar in Vancouver, B.C. in May of 1995 is said to be slanderous of the Plaintiff Baines. [2] Baines, is a business reporter and columnist for the Vancouver Sun, a paper owned by Southam Inc., also a Plaintiff in this action. Baines' news stories and columns have been critical of the activities of a number of companies listed on the Vancouver Stock Exchange (Sometimes referred to herein as the V.S.E.). [3] Chelekis, is a journalist who was resident at and worked out of Clearwater, Florida, United States of America. Chelekis participated in this action but did not appear at the trial. Lawyers who had acted for Chelekis throughout the action withdrew a month or so before the trial because they could not contact him. On the day of the trial new counsel appeared for Chelekis and sought an adjournment of the trial. An adjournment was declined and the trial proceeded without him or the Defendant Robinson. [4] In a news story about Chelekis published in the Globe and Mail on June 5, 1995, it was said of Chelekis: From a small office in Clearwater, Fla., George Chelekis writes relentlessly bullish reports about Canadian junior stocks. He is one of a new breed of investment newsletter writers using cheap desktop publishing equipment to spread his views around the world in newsletters, faxes, E-mail, wire services and over the Internet. The evidence tendered at trial confirms that description of Chelekis. [5] The articles which are the subject matter of this action first appeared in a business publication called the Bull & Bear, published in Florida, U.S.A. The first of the articles appeared in the August 1994 edition of the Bull & Bear, and the second article appeared in the October 1994 edition of the Bull & Bear which came out in late September of that year. [6] The Defendant, David J. Robinson, was the publisher and editor of the Bull & Bear as it was then called. Robinson now publishes and edits a similar paper, printed in the same format and known as the Bull & Bear Financial Report. Robinson resides and works out of Longwood, Florida. [7] The Defendant, Bull & Bear Financial Newspaper Inc. ceased to exist as a corporation on July 23, 1994. The Plaintiffs do not now seek judgment against the defunct corporation. [8] Market News Publishing Inc. ("Market News") is based in Vancouver, British Columbia. It distributes business information in Canada and to the United States. Robert Shore is the owner and alter ego of Market News. Market News distributes its information by means of electronic communication to private investors, but of importance to this case, Market News supplies its material to other news distributors, particularly Star Data and Bloomberg. By supplying its material to Bloomberg, Market News can, and sometimes does, achieve worldwide distribution of the material it publishes. [9] On October 4, 1994, shortly after the second of the articles was published, the Plaintiffs took action on the articles published in the Bull & Bear. Later that day Chelekis published the press release alleged to be defamatory. The action tried before me, a successor action to that first action, was started in May of 1995 and was a claim for damages for the two articles, the press release and a slander made on May 5, 1995. [10] At first there were other Defendants in the proceedings, Canadian Corporate News Inc., and its publisher, Peter Hunt. The claim against those Defendants was for the press release published by them on October 4, 1994. By the time the matter came to trial, the action against Canadian Corporate News and its publisher had been withdrawn. [11] The events leading to this action began in late July of 1994. Baines received a telephone call from Chelekis. At first Baines was unaware that he was about to become the subject matter of a prolonged campaign of libel and harassment by Chelekis. [12] After their first telephone conversation Baines became apprehensive. He tried unsuccessfully to get Chelekis back on the phone. Chelekis made himself unavailable. Baines left a message with Chelekis' secretary to the effect that they should not use anything that Baines had said. [13] Baines then faxed Chelekis as follows: George - I have received information that you are not a main stream journalist, as you represented yourself. I therefore direct you not to use my name or any quotes from me in your publication. Please also scratch my name and number from your files. "David Baines" [14] Chelekis later twisted what Baines had said on the telephone into a death threat against Chelekis' secretary. Chelekis falsely stated Baines threatened his secretary, both in communications to Baines and in communications that were made public. Whatever was said by Baines, I find Baines did not threaten Chelekis' secretary. [15] Later on July 29th, Baines faxed Chelekis: Pls. note that I did not threaten your secretary. I said the biographical material on me may not be correct and publication thereof would be at your own peril, as inaccurate not retribution. "David Baines" [16] Baines' fax of July 29th was sent at 1:17 p.m. At 1:50 p.m. Chelekis published a story on Business Wire under the heading: "Journalist Cover Up: Journalist tries to kill another Journalist's story; Cover up in progress; Threatens life". CLEARWATER, Fla. -- (BUSINESS WIRE FEATURES) -- July 29, 1994 -- David Baines, a Vancouver Sun columnist, threatened the life of the secretary of a journalist, George Chelekis, who has been working on an assignment for Bull & Bear magazine, which is expected to expose the exposers. Baines stated in a telephone call at approximately 1 p.m. (EDT) to Sally Lindsey, Chelekis' story researcher: "Everything I told you yesterday was incorrect, you should dispose of all of it. You can not print it. If you print any of it, you will ... well ... be in peril." Baines was referring to Chelekis' article which he discovered was not the garden-variety attack, which Baines has been accustomed to writing for the Vancouver Sun, but an expose of those who have been exposing fraud on the V.S.E. "I found intriguing connections in Mr. Baines' past, before he wrote for the Sun," said Chelekis. "One must wonder further about the Adrian du Plessis-David Baines connection, particularly as du Plessis called my office in a frenzy, followed by Baines' call approximately three minutes later." Both are trying to prevent Chelekis from continuing his expose efforts. "This ought to be a turn of events for the Vancouver Stock Exchange," said Chelekis. "They are usually the ones getting smeared by Baines and du Plessis. Baines has telephoned for Chelekis five times Friday and faxed him twice in an effort to prevent him from writing his article or discredit him. "I guess the way journalism is done in Vancouver is different from down here in the States," concluded Chelekis. [17] This story written by Chelekis was published on Business Wire on July 29, 1994. It was not the subject matter of a claim in this action. However, I construe it as an effort to achieve publicity for the articles which were yet to come and were the subject matter of this action. [18] On that same day, July 29, 1994, Chelekis wrote to Don Babick, the publisher of the Vancouver Sun and repeated the allegation that Baines threatened Chelekis' secretary and stated he would be reporting the matter to "the authorities". Chelekis wrote similar letters to David Laundy of the Vancouver Stock Exchange and to the Globe & Mail and Toronto Star newspapers. [19] The first article which is said to be defamatory was written by Chelekis and published in the August 1994 edition of the Bull & Bear. It was entitled, "The Brand-New, Revised and Improved Vancouver Stock Exchange: Still the Scam Capital or a Safe Haven to Invest?" That article is reproduced as Appendix "A" to these reasons. The article impugns the integrity of the Plaintiff Baines, and a man named Adrian du Plessis. du Plessis, like the Plaintiff Baines, is a persistent critic of the Vancouver Stock Exchange and companies listed on that Exchange. du Plessis is a frequent source of information for Baines' articles and columns. Some of the phrases in the first article were characterized by Baines' counsel as extreme and derogatory. Those phrases include: "Muckrakers exposed"; "Together, Baines and du Plessis connived to create a pipeline of disinformation"; "du Plessis found a pliable reporter to feed his steady stream of bad news"; "Muckraker Goes Berserk"; "Mr. Baines himself, may soon to become the subject of an investigation"; "Baines threatened her"; "Baines' Snitch"; "With the two V.S.E. muck-rakers exposed"; "Neither would wish to loose their hard earned status, the money's too good"; "Could it be more sinister than just a Baines/du Plessis money- making scheme?" "Odd also that accomplices, such as Baines and du Plessis ...". [20] While the language is colourful, some of it ranks only as pejorative abuse and perhaps unfair comment. However, several lines are, when considered in their context, untrue. The statement "Baines threatened her" is untrue. In context, the statement "Mr. Baines himself, may soon become the subject of an investigation", was untrue. I construe the statement as an assertion that Baines committed a crime or an offence that could become the object of a criminal investigation or an investigation by a regulatory body. That implication is the interpretation likely to be drawn out of the article by a reasonable reader. It was an untrue assertion of fact. [21] The Plaintiffs did not take action after the first article. However that first article turned out to be a precursor of the second article published in late September 1994 in the October edition of the Bull & Bear. [22] Chelekis had met with the Defendant, Shore, in the summer of 1994, and the two arranged that Shore and his company, Market News Publishing Inc., would distribute Chelekis' articles about Baines through Shore's news distribution system. Chelekis paid Shore the sum of $2 as consideration for Shore publishing his material. Why the payment was $2 is not apparent. Perhaps it was under a mistaken idea on Shore's part that this might absolve him from responsibility for what Chelekis wrote. [23] The August article, was followed by a second article in late September 1994. It was published first in the Bull & Bear and entitled "The Vancouver Stock Exchange: A Short Seller's Paradise Revealed". A copy of that article is attached to these reasons as Appendix "B". [24] In the Bull & Bear article, an information box alongside the article included the following short description of Chelekis: "Mr. George Chelekis is a best-selling author of nine books and an award-winning journalist. He has published more than 1,000 articles and is a frequent guest on radio and television talk shows, as well as having been featured or quoted in more than 600 newspapers and magazines, domestically and internationally." [25] The second article was more inflammatory than the first article. It implied that Baines and du Plessis were in receipt of illegal payments. Included in the article are the following passages: What may interest investors is how two individuals manufactured negative press about selected companies in order to drive down their share prices. The previously undetected enterprises, dating back to 1988, has caused U.S. and other investors to lose tens, if not hundreds, of millions of dollars.... Many U.S. and other investors who buy V.S.E. stocks were victimized by a carefully designed propaganda campaign.... While U.S. and foreign investors have continued to get fleeced, short sellers are still having a field day. As you read what follows, you will understand how these two individuals have been manipulated by, or conspired with, professional short sellers to decimate a stock's price.... In Vancouver, the big question mark has been: Why are these two self-righteous individuals so energetic in their efforts to generate bad press? It is for only one reason: short selling.... Lightning bolts move in slow motion compared to the rumors on Howe Street. A reporter was up for sale.... Baines casually altered facts or manufactured outright lies to drag down the share values, making Camporisi appear that he was fleecing the company.... It is now a matter for the Royal Canadian Mounted Police and the Canadian Securities Commission to determine the extent of their crimes and the dollar amounts they were paid for their scourge against the V.S.E. A du Plessis acquaintance claims that the elusive funds are kept in Panama. Another friend says, "Look into Bermuda."... Covering up one's connections to short sellers under the guise of whistle blowers, is a failure to disclose, being both disreputable and a conflict of interest. They claim to serve the public, yet help the short sellers fleece them. While short selling is not illegal, a Canadian citizen failing to disclose a foreign bank account in an effort to avoid taxes, is illegal.... Throw the bums in jail! [26] I construe the second article as saying that Baines and du Plessis have conspired with others, or have acted at the behest of others, to aid short sellers in the stock market. Those statements I find on the evidence to be a deliberate lie on the part of Chelekis. I construe this second article as saying that Baines and du Plessis conspired with unnamed others to drive down share prices; that they did so to benefit themselves or to assist short sellers and they have been illegally paid off for so doing. If they did, that would be a criminal offence under what is now s. 380(2) of the Criminal Code: (2) Every one who, by deceit, falsehood or other fraudulent means, whether or not it is a false pretence within the meaning of this Act, with intent to defraud, affects the public market price of stocks, shares, merchandise or anything that is offered for sale to the public is guilty of an indictable offence and liable to imprisonment for a term not exceeding ten years. [27] There are comparable offences of a criminal nature in other jurisdictions. [28] Some would construe the articles reproduced in Appendices "A" and "B" to be hyperbole, but many would accord them some credence. The Defendant Shore, who is a man with some knowledge of what was going on in the Vancouver stock market, gave the following answers to questions on his examination for discovery held before the trial: A I felt that there was a substantial portion of it that was true and I didn't know of any that couldn't be proven or that wasn't necessarily ""nor did I know of anything that would make them untrue... Q You thought that a substantial portion of it was true and you didn't know for certain that anything was untrue, is that a fair summary? A That's a fair summary. I construed his evidence at trial to be to the same effect. [29] In his testimony at trial, the Defendant Shore, equivocated as to whether he and Market News had published Chelekis' second article, the article contained in Appendix "B" and which had been published as hard copy in the Bull & Bear, September/October edition. Shore did not concede that he had sent the October material contained in Appendix "B" to Bloomberg and Star Data. [30] I have concluded from the circumstantial evidence that Shore did on or before October 4, 1994, publish the article reproduced at Appendix "B" entitled, "Vancouver Stock Exchange: A Short Seller's Paradise Revealed" and I have concluded he did transmit that article to Star Data and to Bloomberg. [31] On October 4th, the second Chelekis article (Appendix "B") came to the attention of the Plaintiffs. The Sun issued the following press release: October 4, 1994. Re: Vancouver Sun issues rebuttal to KGC news release of October 4, 1994. VANCOUVER, BC -- Certain allegations have been made against Vancouver Sun reporter David Baines in an article written by George Chelekis in the October issue of Bull & Bear, a Florida stock market publication, and in a news release placed on Canadian Corporate News by its U.S. affiliate Business Wire, acting on behalf of their client KGC Inc. of Clearwater, Fla., on Oct. 4, 1994. These allegations are false and libelous. Legal proceedings against the author, George Chelekis, and the publication, Bull & Bear are being commenced ... [32] On October 4th and 5th, the next day, Chelekis issued a news release, which was really an advertisement to publicize his October article in the Bull & Bear and its distribution on various computer networks. That press release read: VANCOUVER STOCK EXCHANGE ("VSE-V") THE VANCOUVER SUN ("ZSUN-V") KGC INC ("ZKGC-V") - U.S./International Media Hoodwinked - On VSE By Short-Seller Team Kelly Defalice of KGC Inc. reports: A copyrighted article, entitled "The Vancouver Stock Exchange: A Short Seller's Paradise," in the October issue of Bull & Bear magazine, implicates David Baines, a Vancouver Sun business reporter, and Adrian du Plessis, a private investigator, in a six-year short-selling scheme. According to George Chelekis, author of the article, "Together, they prompted damaging international media coverage of the VSE ... restricting retail investor participation in VSE-listed stocks." Chelekis unearthed their connection to short-sellers who profited from Baines' journalism and du Plessis' press agentry. Said Chelekis, "They failed to disclose who was paying them for the blatant press attacks against VSE-listed companies. In a July 1994 telephone interview with Chelekis, du Plessis said, "I hire myself out to wealthy clients." In an earlier telephone interview with Chelekis, Baines said, "There's a lot of money to be made on the VSE." According to Chelekis, Baines had earlier admitted that du Plessis was his "guide of Howe Street's underground labyrinth." During his investigation, Chelekis uncovered that Baines used a "death threat hoax" in a failed attempt to advance his career, that du Plessis may be illegally concealing his short-selling profits in a Panamanian bank account, and that du Plessis had previously been fired twice for front-running stocks as a floor trader. "These two built careers as whistleblowers against a scandal-ridden VSE when, in fact, they were the ones engineering the scandals," said Chelekis. "While the VSE became the most heavily regulated North American stock exchange, these two were never disciplined for their personal abuses and profiteering." [33] Chelekis sent the October 4th press release to a U.S. wire service called Business Wire and from there the October 4th press release was picked up by Canadian Corporate News, an affiliate of Business Wire. [34] I interpret the October 4, 1994 press release to say in effect that Baines received illicit payments from short sellers to write critically about certain stocks trading on the VSE. Further that Baines was himself responsible for death threats he received. Those statements are implications of fact are false and false to the knowledge of Chelekis. [35] On October 6th, Canadian Corporate News became aware of the potentially libelous nature of the press release quoted in paragraph [32] above and published a form of apology: October 6, 1994 CCN STATEMENT ON LAWSUIT VANCOUVER, BC--On October 4, 1994, Pacific Press Limited and David Baines commenced an action in the Supreme Court of British Columbia against Canadian Corporate News (CCN), The Bull & Bear Magazine and George Chelekis. The lawsuit relates in part to a news release issued by KGC Inc. and transmitted by CCN on October 4, 1994. CCN is engaged in the business of transmitting by newswire news releases created, written and published by others. Our activities do not normally include any editorial rewriting or other journalistic work on news releases, beyond checking that the source of the news release is correctly and clearly identified and is included with the transmission. CCN transmitted the October KGC news release in the normal course of its business, and following its ordinary procedures, without checking its contents for accuracy. Later on October 4, 1994, CCN also transmitted a news release of Pacific Press Limited responding to the statements made in the KGC news release. CCN has no knowledge of any of the matters stated in the KGC news release. In particular, CCN has no knowledge of any impropriety on the part of Pacific Press Limited or David Baines and CCN expressly disassociates itself from any suggestion of such impropriety. CCN very much regrets any damage that may have been caused by its transmission of the KGC news release. FOR FURTHER INFORMATION PLEASE CONTACT: J. Peter Hunt President Canadian Corporate News Inc. [36] The Defendant, Chelekis, did not relent and continued to taunt Baines. On October 13, 1994, he wrote a short letter, to Baines, transmitted by fax: October 13, 1994. Dave - Here is today's article who the Exec. VP of the VSE is now bravely condemning three unnamed reporters who are "vocal, prolific writers who are absolutely dedicated to the annihilation of the VSE." Four months ago, no one would dare open their mouth and say anything like this!!!! Looks like we started something up there in Vancouver .... Sincerely, "George Chelekis" [37] Chelekis was referring in his fax transmission quoted in paragraph [36] to an article in the Vancouver Province October 13, 1994. In that article Clayton Shultz, the former Executive Vice President of the Vancouver Stock Exchange, is quoted as saying at a mining seminar: There are three reporters, slash quasi-reporters, who are vocal, prolific writers who are absolutely dedicated to the annihilation of the Vancouver Stock Exchange. They're very open about that. [38] Chelekis continued to taunt Baines. Included in that barrage was a faxed letter sent on October 28, 1994, which was a precursor to the slander to be made in May of 1995: Dear Mr. Baines: During the course of my investigation, the following report has come to my attention from a (U.S.) Central Intelligence Agency source: 1. That you have been involved in an on again/off again homosexual relationship with Adrian du Plessis; 2. That Mr. du Plessis and yourself cruise the gay bars in Vancouver; 3. That your wife is unaware that you may be HIV positive. Would you please respond to the above report? Sincerely, "George Chelekis" [39] On November 1, 1994, Chelekis wrote Baines as follows: Dear Mr. Baines: I wanted to update you on recent developments which may be of interest to you. A. At 11 am (eastern time) today I will appear on yet another major U.S. talk show, for one hour, to discuss "the David Baines-Adrian du Plessis" matter. I expect to mention the CIA report. By the way, I appeared on a network radio talk show a few weeks ago, airing on 311 U.S. radio stations, and discussed the results of your teaming up with Adrian. The talk show host told me that phones rang off the hook. Indeed, our S00* is still receiving inquiries for my latest article. That host has asked I appear every month. B. Because of the widespread acceptances of my latest series of "Baines-du Plessis articles", my new newsletter will be launched on November 7th. It is tentatively being called "The Baines-du Plessis Update." The newsletter will be available only by fax and e-mail. To date, we have accumulated 6,500 names and fax/e-mail addresses -- worldwide! Imagine the possibilities! C. Because of the Bull & Bear's editorial and circulation limitations, my continuation of the articles will be available shortly on the Internet. Through electronic bulletin boards, e-mail, and various non-profit information providers, I believe we can reach a global audience of several million on a bi-weekly basis. As you know, B&B's frequency is bi-monthly. Because there are so many developments in your life, a bi weekly update is necessary. D. News continues to stream from Vancouver and elsewhere about your past and especially about du Plessis' past. I hoped to chat with you about some of the claims but you are definitely avoiding me. I try to update my New York City metropolitan area audience on my weekly talk show. Would you consider appearing on my show to offer another point of view? You should hear what some of the listeners have to say about you! You know, you are becoming quite well-known to New Yorkers. In fact, we are getting phone calls from as far away as Massachussets and Maryland. Other radio stations have also run excerpts from my recent series of articles. Perhaps, you should consider sending your resume to the Post or the News ... or even the Star Ledger. I hear Newark has gone through a wonderful gentrification. Homes are even affordable there. E. Negotiations on my book deal are at an impasse. I may have to come down on my price a bit. The editors don't think a U.S. audience would seem to care much about what happens at the Vancouver Stock Exchange or with the Baines-du Plessis connection. Last I heard, I can get a high five figure royalty advance, but I would like to get at least $125K (U.S. of course) on this book. I may just hold out and see how the fax/e-mail newsletter works out. Of course, if the Internet pieces catch on, then that's another matter. My price could go up. F. I look forward to my Noon meeting with Scott Honeyman on December 1st in Vancouver. We really have to remedy this "censorship bit" you and the Sun have been running on my news dissemination. Hopefully, you and I can catch lunch afterwards and have a good chat. I hear that's the "Canadian Way." Besides, we all know that the libel suit isn't going anywhere. G. David, in closing ... thanks for everything. Sincerely, "George Chelekis" [40] On December 19, 1994, Chelekis faxed Gerald Proselandis of the Vancouver Sun: I want you to know that each time your Mr. Baines writes a Column on a Company or individual, the target of his wrath will receive a free copy of two articles written by the "Bull & Bear" Newspaper. This program will continue until Mr. Baines is left with ZERO for credibility. [41] On May 6, 1995, Chelekis appeared at the Vancouver International Mining Investment Conference in Vancouver, B.C. He spoke to a well attended seminar at the Hotel Vancouver. In the course of that speech Chelekis said: How else but by asking can I possibly find out if it is true that Mr. Baines is HIV positive and that his wife does not know? [42] The "I" referred to Chelekis and "Mr. Baines" referred to the Plaintiff Baines. I find the statement was intentionally untrue and the statement was made maliciously. I construe it as an assertion that the Plaintiff, David Baines, had tested positive for the Human Immunodeficiency Virus and that he had not told his wife of that fact. The words were spoken in a deliberate attempt to ruin Baines' reputation. DAMAGES [43] The article published in the August 1994 edition of the Bull & Bear was libelous. Chelekis knew that the allegations of fact were untrue and Robinson was indifferent to their truth. [44] I assess general damages against Chelekis and Robinson for the article which appeared in the August edition of the Bull & Bear at $75,000. [45] The second of the articles sued upon, the article contained in the October edition of the Bull & Bear (Appendix "B") ranks as the most damaging of the libels. It would appear to have attained the most widespread distribution and was published on separate occasions. [46] The print edition was published by Robinson himself as the Bull & Bear Financial Newspaper Inc. was no longer in existence. In any event, the evidence at trial showed that Robinson would be liable for damages regardless. [47] The August 1994 circulation of the Bull & Bear was 26,500 copies, most, but not all of which would be in the U.S. Of the 26,500 published in August of 1994, 940 were distributed in Canada, and 217 were distributed in British Columbia. The October edition circulation would be similar. The October article is the most egregious and damaging of Chelekis' libels. For the libel published in his October edition of the Bull & Bear, the second article, there will be awarded against Chelekis and Robinson, damages in the sum of $200,000. [48] The libel contained in the October 1994 edition of the Bull and Bear was repeated by the Defendant Shore and Market News Publishing Inc. This was a separate publication of the libel. It was this publication that lead to worldwide distribution of the libel. A result intended by Chelekis and Shore. That was achieved by supplying the libel to Bloomberg's service. I view this publication of the article by Shore and his company, Market News as the most damaging of the libels which are the subject matter of this action. Chelekis, Shore and Shore's company, Market News Publishing Inc., shall be liable for the sum of $250,000 damages for the libels contained in the second article and published by them. [49] The October 4, 1994 press release was also published by Market News Publishing Inc. but no claim was made against Shore and Market News Publishing Inc. for publication of the October 4th press release. That press release was distributed on a U.S. wire service called "Business Wire". From Business Wire it was picked up and disseminated by the Canadian affiliate of Business Wire "Canadian Corporate News". As Shore and Market News were not sued for their publication of this article, the sole Defendant against whom a claim is made is the Defendant Chelekis. I find the October 5th, press release is libelous and award the sum of $100,000 damages against Chelekis for its publication. [50] With respect to the slander of May 5, 1995, that slander is one for which special damages need not be proved but are assumed. It was untrue. The statement was made by Chelekis to a group of businessmen and to other journalists. Many might realize the statement was a lie but it was an outrageous lie, uttered with malice and meant to destroy Baines. However, that lie did not receive the worldwide coverage that the libels received. I fix damages for the slander of May 5, 1995, at $50,000. AGGRAVATED DAMAGES [51] The Plaintiff seeks aggravated damages and further seeks punitive damages. Brown, The Law on Defamation in Canada, (Carswell, 1994) says: Aggravated damages may be awarded in circumstances where the defendants conduct has been particularly high handed or oppressive, thereby increasing the plaintiffs humiliation and anxiety arising from the libellous statement ... these damages take into account the additional harm caused to the plaintiffs feelings by the defendants outrageous and malicious conduct. [52] Chelekis' conduct was arrogant, vindictive and continuous. As he said in his letter of December 19, 1994 to Proselandis, "This program will continue until Mr. Baines is left with zero for credibility." [53] Chelekis carried on his campaign of vilification with the intention that Baines be left with no credibility. His intention was to destroy Baines' career. With that in mind he arranged for the publication and re-publication of his articles with the intention they would reach a world wide audience. He did reach the world wide audience. [54] The other defendants willingly participated in the distribution of Chelekis' material but I am not persuaded their conduct merits an award of aggravated or punitive damages. [55] There shall be awarded against the Defendant Chelekis aggravated damages in the sum of $100,000. PUNITIVE DAMAGES [56] Punitive damages are not compensatory damages but may be awarded to punish a defendant for his reprehensible conduct. [57] I take cognisance of the deliberate intention to injure Baines and the vindictive manner in which that intention was pursued. [58] In the course of his campaign Chelekis manufactured three separate and deliberate lies, the first -- that David Baines threatened his life, the second -- that Baines was trading against his column, and third -- that Baines was involved in a homosexual relationship with Adrian du Plessis. It was Chelekis' intention to inflict on Baines the maximum damage he could. The Plaintiff shall receive punitive damages against the defendant Chelekis in the amount of $100,000. SUMMARY [59] There shall be judgment against the Defendant Chelekis and the Defendant Robinson for the libel published in the Bull & Bear: a) for the August libel contained in Appendix "A" - $75,000 b) for the September libel contained in Appendix "B" - $200,000 [60] There shall be judgment against the Defendants Chelekis, Shore and Market News for their publication of the libels in Appendix "B" - $250,000. [61] There shall be judgment against Chelekis for the October 4, 1994 news release - $100,000. [62] There shall be judgment against Chelekis for the May 5, 1995 slander - $50,000. [63] There shall be awarded against Chelekis for aggravated damages - $100,000. [64] There shall be awarded against Chelekis punitive damages of $100,000. [65] Southam Inc. joined in this action as a Plaintiff and claimed damages. I am not persuaded the attacks on Baines affected Southam in a way that corporation can be legally compensated. Southam's action will be dismissed. However its participation in the action did not result in any additional time or expense and there will be no costs awarded against Southam. Special costs are awarded to Baines against Chelekis and costs will be awarded against the other defendants on the 4th scale. "ROWAN J."