On July 20, Canada’s Supreme Court unanimously rejected arguments that libel law inhibits writers and creators and held that the law is quite consistent with media rights to freedom of expression. It also said there is nothing wrong with the largest libel award in Canadian history – $1.6 million. It’s a decision which could be important to producers of documentaries, docudramas and even fact-based dramas.

The court was dealing with the first libel case since Pierre Trudeau’s Charter of Rights and Freedoms and its guarantee of media rights. The case involved the Church of Scientology and its lawyer who had launched a fierce attack on a Crown Attorney involved in prosecuting the Church. The Crown Attorney sued both for libel.

Canadian media groups ranging from the Writers’ Union to the Canadian Association of Broadcasters argued that the law chills creativity. They said $1.6 million was excessive and they wanted libel awards capped. The media groups told the Court that Canada should move closer to American law.

In the u.s., public officials and even certain public figures must prove a defendant either knew, or didn’t care, that a statement was false. But in Canada, no matter how careful the research, a defendant can lose a libel suit if any statement turns out to be false.

The Court didn’t buy the media’s arguments. It said nothing is wrong with existing libel law. There is no chill, or if there is, it justifiably checks those who would defame individuals. Libel law balances protection of reputation and privacy against freedom of expression. The court did not think there should be a separate test for public figures.

The Court also said there is no reason to put a cap on libel awards.

The campaign against libel chill is now dead in its tracks. Unless the media can persuade politicians to change the law, they must continue to prove the truth of what they screen or print. Freewheeling u.s.-style criticism of politicians and public figures stops at the Canadian border.

(simon chester is the research partner and a member of the KNOWlaw Group of the Toronto law firm of McMillan Binch.)