Ontario Severance

O. v. Magna Entertainment Corp.

2008 CanLII 723 (ON SC)Ontario Superior Court of JusticeDecided Wrongful dismissal

Wrongful Dismissal: Employment Contract Termination and Novation Liability

Appeal history

  • Appealed to the Court of Appeal for Ontario: O. v. Magna Entertainment Corp., 2009 ONCA 776 (CanLII) (employers' appeal allowed; employee's cross-appeal dismissed; 1 year's severance stands)

Summary

A wrongful dismissal case involving the plaintiff’s employment with Magna Entertainment Corp. (MEC), which was terminated on July 28, 2003, triggering termination provisions in the employment contract. The plaintiff was entitled to a two-year retiring allowance, and the court addressed whether MEC’s liability was extinguished by an incomplete novation of the employment contract to MII, as well as whether the plaintiff had a duty to mitigate damages.

Outcome

The court ruled that MEC’s obligation to pay the retirement allowance was not extinguished by the assignment and that the plaintiff was not required to mitigate damages due to the contract’s terms. Judgment for the plaintiff for $1,643,461.31, plus pre-judgment interest.

Award

The plaintiff was awarded damages based on the two-year retiring allowance provision, with the conversion date set as August 27, 2003.

Key Factors

  • wrongful dismissal
  • employment contract termination provisions
  • novation of employment contracts
  • duty to mitigate damages
  • retiring allowance

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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.