The Toronto Star newspaper published a story concerning the proposed expansion of the Frog's Breath private golf course, built on a property owned by the plaintiff, Peter Grant, that was located on the shore of Twin Lakes near New Liskeard, Ontario.

[1][3] After the article was published, Grant sued the newspaper's parent company Torstar Corporation for defamation.

[3] Torstar argued that the paper presented the concerns of local residents without making any claims of impropriety by Grant, as well as "an expanded qualified privilege defence based on a concept of public interest responsible journalism.

"[1][4] The Court did not allow the defence of responsible journalism to be considered by the jury, leaving it to determine whether the Star engaged in "fair comment".

[5] The jury found the defendants guilty of libel, and awarded general, aggravated, and punitive damages in the amount of $1.475 million.

It then determined that four issues needed to be resolved: Speaking for the majority, Chief Justice McLachlin found that the defence should exist so as to not restrict speech.

She also found justification in the ruling supported by the emerging recognition given to the defence in other common law states.

Since the property at issue in this case was owned by the company, it was put up for sale to pay off Grant Forest Products's creditors.