12/24/2025
Court of Appeal Part III
In a comment on an earlier post, Gemma asked a great question about how all these legal threads weave together. Since the answer is a bit involved and the comment threads over there are getting long and hard to follow, I have broken this out into a full post.
Gemma asked: Will the Court of Appeal decision in Nielsen v. Beland have any effect on the defamation lawsuits filed by the former board?
SHORT ANSWER:
Yes. It has a major "domino effect." While the Court of Appeal was specifically dealing with the society governance case, its findings strike at the heart of the plaintiffs' credibility and provide a powerful boost to the defense of the community members being sued for defamation.
LONG ANSWER:
Here is why this decision changes the landscape for the defamation cases (S-236398):
1. The Credibility Factor:
In a defamation suit, the plaintiffs (the former board members) are effectively putting their own reputations on trial. They are asking a judge for money because they claim their reputations were damaged by accusations of "secrecy" and "shady dealings."
However, the highest court in BC has now unanimously found that a representation made by Greg Cowan to a judge—claiming they "ran out of time" before a previous justice—was "incorrect". Having a judicial finding from the Court of Appeal that you provided "incorrect" info to obtain a court order is a devastating blow to one's credibility when trying to claim a "spotless" reputation.
2. Validating the "Gist" of the Community's Criticism:
To defend against defamation, you don't have to prove every single word was 100% accurate; you just have to show the "gist" of the statement was substantially true. The community’s suspicion of "shady dealings" and "procedural maneuvering" was based on facts that occurred months before the court order:
• The "Full Slate" Rule: The board required that any ballot without a full eight votes would be spoiled, effectively forcing people to vote for incumbents they were trying to unseat.
• Unapproved Concepts: Presenting conceptual drawings to Mission Council for concrete "tilt-up" buildings that the general membership had not seen or approved .
• The Sign: Spending over the board’s authorized limit without a membership vote.
The BCCA’s finding that the board later obtained a "Shutdown Order" through a "procedurally unusual" process and a denial of procedural fairness validates the community’s underlying assessment: that this was a board willing to use procedural tricks to bypass the members.
3. Impact on Damages Even if a court were to find that a statement was defamatory, the plaintiffs' own conduct is a major factor in deciding how much money (if any) they should get. Courts are far less likely to award significant damages for "injury to reputation" to plaintiffs who have been rebuked by the Court of Appeal for conduct that "deserves reproof" in related litigation .
The Bottom Line: The Court of Appeal decision has essentially flipped the script. The findings in Nielsen v. Beland provide a roadmap for the defamation defendants to show that their concerns about governance were not "malicious attacks" but were rooted in a very real governance crisis that the BCCA has now documented.
In the other case where 9 members are contesting their expulsion for the SGCA, 4 of the expelled members are the respondents in Nielsen v. Beland it also has an impact.
In the expulsion lawsuit currently before the New Westminster registry, the former board members argue that they are "members in good standing" who were removed without cause. However, SGCA Bylaw 2.4 (b) explicitly states that membership may be withdrawn by a two-thirds majority vote for "wrongful behavior of any kind".
The Court of Appeal decision provides the community with a court-validated record of what that behavior looked like:
1. Misleading the Court: The highest court in BC has now confirmed that the representation made to obtain the November 1st order—claiming the parties had "run out of time" before a previous judge—was "incorrect".
2. Denial of Procedural Fairness: The BCCA found that the former board obtained a "procedurally unusual" order that granted them the "entirety of the relief they sought" before the Society had even been served or allowed to speak.
When a group is found by the Court of Appeal to have used the judicial system to legally paralyze their own association based on "incorrect" information, it becomes very difficult for them to argue that their conduct wasn't "wrongful."
So the decision has provided the evidence needed to show that the community was justified in protecting itself from a board that the BCCA has now documented as having operated in a "procedurally unfair" manner.
I relied heavily on AI, specifically Gemini, to research and write this post.