For four years, three Saskatchewan residents fought a self-described online spiritual teacher who, they alleged, branded them child abusers and Satanists in front of her followers.
In August, a federal jury in Honolulu sided with them and ordered her to pay US$40.1 million, or just over CA$56 million. News outlets describe it as one of the largest civil awards in Hawaii’s history.
So far, the verdict hasn’t put any money in their bank accounts. And the whole fight started with something many Canadians do every day: posting about someone online.
Thanks for subscribing!
The best of Money.ca delivered weekly.
By signing up, you accept Money.ca Terms of Use, Subscription Agreement, and Privacy Policy.
What happened in the Hawaii defamation case?
W5, the investigative program from CTV News, laid out the case in a five-part investigation called Fake Filtered Cult Leader, which reported that Liane Wilson, who goes by Liana Shanti online, was ordered to pay Paula Haygarth and Byron and Stefanie Horvath a staggering sum.
Shanti sued first, accusing the Canadians of defaming her in posts that labelled her a fraudster and cult leader who broke up families. The three counter-sued, alleging an online campaign spearheaded by Shanti that accused them of supporting pedophiles, practising black magic and abusing children. The cases were filed in Hawaii, where Shanti lives, and an eight-person jury rejected her claims and found she had defamed them.
The three were never Shanti’s students. CTV News reports that each was associated with an ex-wife who was following Shanti at the time. Haygarth, for example, is stepmother to the daughters of former student Amanda Brady. Other former students told W5 they turned to Shanti for advice about their marriages, children and careers, and one says she spent tens of thousands of dollars on sessions and courses.
Must Read
- A single line on your car insurance policy could be inflating your premium by up to 30% — here's what to change
- Here are 5 'must-haves' that Canadians constantly overpay for. How many of these are sabotaging your budget every single month?
- Here are the 5 biggest differences between rich and poor Canadians — which side do you fall on?
Join 20,000+ readers and get Money.ca’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
When will the Canadians see any money?
Shanti plans to appeal. She declined W5’s interview requests, but wrote in an email that her appellate team sees “serious errors of law” and will seek a new trial.
The costs have already landed. Haygarth says her legal bills add up to more than US$600,000. She and her husband had to sell their Saskatchewan home she owned and move into a trailer. W5 reported the couple hasn’t received any funds from the verdict thus far and aren’t sure they ever will.
Collection is its own hurdle, since the amount a winner recovers depends on what the other side owns and where those assets are held. Because the case was decided in Hawaii, where Shanti lives, any effort to collect would likely play out in U.S. courts.
The verdict also hasn’t stopped Shanti from continuing to post similar Instagram stories about the three and about former followers. She says she is repeating information others have told her and believes to be true.
Can the person you criticize sue you?
The Shanti case played out in a U.S. court, but Canadians who post about someone, or who are posted about, deal with Canadian rules at home. And the legal risk runs both ways: the person you criticize can sue you.
Ontario, British Columbia, Quebec and Manitoba have laws against strategic lawsuits against public participation (SLAPPs), which let courts dismiss lawsuits aimed at silencing speech on matters of public interest at an early stage. In the Northwest Territories, members of the legislative assembly (MLAs) unanimously passed a similar bill in late October and will become law once the territory’s commissioner gives assent.
These laws don’t protect every post. For example, under Ontario’s version, a judge won’t dismiss a case if the person suing shows three things: the claim has substantial merit, the defendant has no valid defence and the harm is serious enough that letting the case proceed outweighs the public interest in protecting the speech.
Could insurance help with legal costs?
Probably not for defamation. Some home policies include legal expense insurance, which pays lawyer fees for certain disputes. It’s sometimes bundled in at no extra cost and sometimes sold as an add-on: the Canadian Automobile Association’s Manitoba club (CAA Manitoba) charges CA$50 or CA$70 a year, for example, but read closely for any exclusions. CAA Manitoba’s policy wording specifically excludes claims over remarks that damage an insured person’s reputation.
You May Also Like
- This 7-step plan from Dave Ramsey is designed to help you ditch debt, save more and build wealth — here’s how it works
- Prioritize these 4 critical investments and watch your net worth skyrocket
- Here are 8 solid money moves that could free up real cash every month — here's where to start
- Millionaires under 43 are reshaping investing — just 25% of their portfolios are in stocks. Here’s where their money is going
The most expensive financial mistakes are often the ones you don't see coming. Join 19,000+ Canadians who get the money moves, risks and opportunities shaping their finances — delivered free each week. Subscribe now.
Writer and editor based in Toronto with experience in personal finance, insurance, arts and culture and branded content.
