A high-profile defamation lawsuit filed by Kamloops Mayor Reid Hamer-Jackson against City Councillor Katie Neustaeter has been dismissed by the Supreme Court of British Columbia after a judge ruled the case was a strategic lawsuit against public participation (SLAPP).

In a decision released January 30, 2026, Justice J. Hughes found the lawsuit met the criteria for dismissal under B.C.’s Protection of Public Participation Act (PPPA), legislation designed to prevent legal actions intended to silence or intimidate individuals speaking on matters of public interest.

The legal dispute dates back to June 2023, when Mayor Hamer-Jackson sued Neustaeter for libel and defamation over statements she made in the spring of 2023. Those statements included a letter to the city’s corporate officer and a public statement read on behalf of all councillors, expressing concerns about the mayor’s conduct, including what were described as “personal attacks,” “disrespectful and untruthful statements,” and troubling interactions involving Neustaeter and her father, former MLA Kevin Krueger.

The councillors’ public statement followed the mayor’s unilateral changes to council committee appointments. In his lawsuit, Hamer-Jackson alleged Neustaeter’s comments were false and damaged his reputation, claiming members of the public inferred he had “physically or sexually assaulted, abused or assaulted Neustaeter and/or others.” He further alleged that, as a result of the statements, a member of the public called him a “pervert” in front of his wife.

Neustaeter responded in June 2024 by applying to have the case dismissed under the PPPA, arguing the lawsuit was an attempt to silence her and that her statements were made in good faith about matters of city governance.

Justice Hughes agreed, applying the three-part test under the legislation. The court found Neustaeter’s statements clearly related to matters of public interest and that she had a valid defense of qualified privilege, which protects statements made without malice by individuals with a public duty to speak. As an elected councillor, Neustaeter had an obligation to raise concerns about the mayor’s conduct, the judge ruled.

“The public interest in protecting the expression of a city councillor on the subject of the conduct of the mayor and the governance of the city is very high,” the decision stated, adding that allowing the lawsuit to proceed would have a chilling effect on public debate.

Speaking after the ruling, Neustaeter said she was relieved the court had recognized what she described as the true nature of the lawsuit.

“I’m so pleased to begin to close this chapter,” she said. “Even more so, I’m pleased that the court recognized the inevitable outcome of this ridiculous lawsuit. It has been costly in so many ways to so many people.”

Neustaeter said the judge also acknowledged her position that she was targeted because of political conflict within council.

“The judge recognized that Reid was targeting me because he sees me as a political opponent, even though we’re supposed to be on the same team,” she said. “I said from the day that Reid filed this lawsuit that I looked forward to defending myself — and I did.”

While the defamation claim has been dismissed, Neustaeter said the legal process is not entirely over. She noted that the court left open the possibility of further proceedings related to special costs and damages.

“Within the next 30 days, we’ll be back before the bench to look at special costs and damages,” she said. “To my knowledge, damages have never actually been awarded in an anti-SLAPP suit before, but we feel the harm that’s been done — not just to me, but to our city and to democracy — should be recognized.”

Neustaeter said the case has drawn attention from municipalities and legal observers across the province, given the relatively recent introduction of the PPPA in B.C.

“I’ve heard repeatedly how closely this lawsuit is being followed,” she said. “This is a victory in favor of free political speech — of not being able to target people because you don’t like that they’re telling the truth. I think it will be monumental in our province.”

She added that the ruling affirmed her conduct throughout the dispute.

“I sleep well at night because I have lived within my ethics every step of the way,” Neustaeter said, calling the lawsuit “needless harm.”

Looking ahead, Neustaeter framed the decision as larger than personal politics or the next municipal election.

“This is about what we expect of our elected officials and how we hold people accountable for their behavior,” she said. “More than anything, this is a real victory for free speech and political speech.”

Neustaeter also expressed hope that the ruling would allow council to refocus on city business.

“I really hope that Reid Hamer-Jackson now allows our council to actually focus on the best interest of our constituents,” she said. “Disagreeing is a core element of what we do at council, but then we move forward together. He still has an opportunity to do that.”

The lawsuit was dismissed with legal costs awarded to Councillor Neustaeter.