Here in Québec a few years ago, there was a similar case that was ultimately brought before Canada's Supreme Court. It involved an individual who sued a publication because it used her image without her permission (the photograph of her was taken while she was sitting on the steps of a building). In a nutshell, our Supreme Court concluded that a photographer's freedom to take photos should not override one's right to privacy, but the justices qualified that by saying that certain individuals could be considered "exempt" from an expectation of privacy, such as people of high profile and of a certain degree of notoriety. I haven't followed the consequences of the case all that closely since the ruling came down a few years ago, but if I recall correctly, it mainly applied to Québec at the time, since our law is based on (French) civil law as opposed to the common law system practiced elsewhere in Canada.
More reading here for those who are interested:
http://www.zvulony.com/photograph_rights.html (scroll down to "The Right To Privacy")
http://www.canlii.org/ca/cas/scc/1998/1998scc31.html (the legal ruling)
http://www.presscouncil.org.au/pcsite/apcnews/may99/privacy.html