Hill v. 1359768 Ontario Inc. (B&B Towing)

2026 ONCA 577 (CanLII)Court of Appeal for OntarioDecided Wrongful dismissal

Wrongful Dismissal: Frustration & Company Asset Damages

Summary

This is an appeal from a wrongful dismissal decision where the Court of Appeal for Ontario dismissed the appeal regarding the issue of frustration of contract. The court found that the employment contract was not frustrated because the employee's essential duties were accommodable and there was a reasonable likelihood of return to work. Additionally, the court reduced the damages award by disallowing compensation for the loss of use of a company tow truck and cellphone, determining these were work tools rather than perquisites.

Outcome

appeal dismissed on frustration ground; award reduced

Award

damages for tow truck and cellphone disallowed; award reduced

Key Factors

  • wrongful dismissal
  • frustration of contract
  • duty to accommodate
  • damages for loss of company assets
  • work tools vs perquisites

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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.