Lerch v. Cableshare Inc.
Constructive Dismissal: CEO Awarded 18 Months Notice After Ten Years of Service
Summary
A wrongful dismissal case involving a President and CEO of a small publicly traded company who was dismissed after ten years of service. The court considered whether the plaintiff was constructively dismissed due to a demotion without reduction in pay but with significant loss of responsibilities, whether the plaintiff breached fiduciary duty, and determined an 18-month reasonable notice period. The court also addressed whether the plaintiff failed to mitigate damages by refusing an offer of continued employment.
Outcome
Notice period of 18 months determined, and plaintiff’s efforts to mitigate damages found sufficient.
Award
Appropriate notice period determined to be 18 months.
Key Factors
- wrongful dismissal
- constructive dismissal
- reasonable notice
- fiduciary duty
- mitigation of damages
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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.