Bowes v. Goss Power Products Ltd.

Summary

This is an appeal decision from the Court of Appeal for Ontario addressing whether the common law duty to mitigate damages applies to a fixed notice period specified in an employment agreement for termination without cause. The court determined that fixed notice periods in employment agreements are treated as contractual amounts or liquidated damages, meaning the duty to mitigate does not apply unless the agreement explicitly states otherwise.

Outcome

appeal allowed

Award

Fixed notice period upheld; duty to mitigate excluded

Key Factors

• fixed notice period
• duty to mitigate
• employment agreement
• liquidated damages
• termination without cause