David Canton has a column in this week’s London Free Press, where he discusses the Conrad Black case:

The case deals with Internet defamation and how to determine where to sue for it. As with traditional defamation, a party alleging Internet defamation must demonstrate they suffered damages in Ontario and also that they have a significant connection to Ontario. Where Internet defamation differs from traditional defamation is that the alleged victim must prove the statements in question targeted Ontario.

In Black v Breedan, Black brought an action for libel against directors, advisers and a vice-president of Hollinger International for statements posted on the Hollinger website. Black argued his reputation was damaged in Ontario as a result of these defamatory statements that had been reproduced in a number of prominent Canadian newspapers, such as the Globe and Mail and the National Post.

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Black v Breedan is noteworthy because of the online aspect of the alleged defamation. Because anything posted on the Internet can be seen anywhere in the world, it has led to “libel tourism” – where someone who thinks they have been defamed will try to sue in whatever jurisdiction they might be most successful in, and get the highest damage award.

Black v Breedan tells us that – at least in Ontario – libel tourists are not welcome.

The case is interesting to me because it’s one of the first looking at the reformulated real and substantial connection test in Van Breda v. Village Resorts Limited for libel cases over the Internet.

The motion judge found most of the Muscutt factors favoured Black. On appeal, the Defendants submitted that the judge erred in looking at the connection of Black to Ontario, instead of the connections of the claim to the province.

The alternative positions of the two parties are best set out in the following paragraphs:

[35]     The defendants submit that treating the lex loci delicti as the place in which allegedly defamatory statements were accessed is inappropriate in the context of Internet libel. An approach that looks to where the statements were accessed, they argue, is contrary to the principles of order and fairness, leads to libel tourism and the prospect of unlimited liability and has a chilling effect on freedom of speech.

[36]     The defendants advocate a different approach to a claim for libel originating on the Internet. They suggest that the focus of the analysis of where the tort of Internet libel is committed should be on whether the defendant targeted the statements to the forum rather than where they were downloaded and read.

The Ontario Court of Appeal upheld the presumption of a real and substantial connection under Rule 17.02(g), even though the Van Breda test was not applied, and held that the Defendants did target their statements to Ontario based on press release contact info for local media. Consequently, there was a real and substantial connection between both Black and the Defendants, even if they were in a different jurisdiction.

In assessing fairness, the court noted that even though there might be difficulties with enforcement of a judgment in the U.S., a favourable ruling would have some value in vindication for Black. But the court also tied this fairness element to the libel tourism issue raised by Canton,

[86]     I agree with the motion judge that it is not appropriate to label it forum shopping or libel tourism if the party has a real and substantial connection with the forum: see Amchem Products Inc. v. British Columbia (Workers’ Compensation Board), 1993 CanLII 124 (S.C.C.), [1993] 1 S.C.R. 897, at p. 920. Further, even if the judgment is not enforceable in the United States, it is enforceable in Ontario, and there is also value in the vindication of a defamation judgment regardless of the ability to collect damages.

Although Ontario courts have resisted libel tourism in the past, Black v. Breedan also reaffirms the proposition that where a case meets the Van Breda factors this is not in fact a case of forum shopping.