M. v. Watson Wyatt & Co.
Wrongful Dismissal: 9 Months Notice Upheld, Punitive Damages Set Aside
Summary
This is an appeal to the Court of Appeal from a trial judge's decision with a jury regarding a wrongful dismissal. The employee was a director of communications and the jury awarded her nine months' reasonable notice, a three-month bad faith extension, and $75,000 in punitive damages. The Court of Appeal upheld the nine months' reasonable notice, the three-month extension, and a $45,000 bonus, but ordered a new trial on a disputed portion of her compensable revenue. The court also set aside the $75,000 in punitive damages because the generous extended notice period was sufficient to punish the employer's bad faith conduct.
Outcome
appeal allowed in part; 9 months' notice upheld
Award
Nine months' notice upheld; $45,000 bonus upheld; $75,000 punitive damages set aside
Key Factors
- wrongful dismissal
- reasonable notice
- bad faith conduct
- punitive damages
- Wallace principles
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This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.