Treaty Group Inc. v. Drake International Inc.
Employment Contract Breach: Agency Fails to Conduct Proper Reference Checks
Summary
A breach of contract case involving an employment agency that failed to conduct proper reference checks for a candidate with a history of fraud. The court found that the defendant breached its contractual obligations and negligently misrepresented the quality of its services, leading to the plaintiff's reliance and subsequent loss.
Outcome
Breach of contract established; misrepresentation found; negligence established; damages apportioned equally between the plaintiff and defendant due to shared responsibility.
Award
Damages apportioned equally between the plaintiff and the defendant due to shared responsibility for the loss.
Key Factors
- breach of contract
- negligent misrepresentation
- reference-checking obligations
- contributory negligence
- employment agency liability
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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.