What are the consequences of an unproven allegation of fraud and other misconduct?
Ontario, Canada
The following excerpt is from Reichmann v. Vered, 2004 CanLII 39940 (ON SC):
Costs sanctions associated with unproven allegations of fraud and other misconduct are rooted in the principles of defamation and would give rise to substantial damages were it not for the privilege associated with court proceedings. Gaspari v. Creighton Holdings Ltd., [1984] B.C.J. No. 2845 (B.C.S.C.).
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