D. v. The Regional Group of Companies Inc.
Employment Contract: Post-Termination Profits & Personal Liability
Appeal history
- Appeal from: D. v. Regional Group of Companies Inc., 2005 CanLII 22133 (ON SC)
Summary
This is an appeal to the Court of Appeal from a trial judge's decision concerning an employee's entitlement to post-termination commission and the personal liability of a corporate president. The employee sued the corporate employer and its president for a 50% commission on a real estate project under his employment contract. The trial judge awarded the employee 50% of the $1,000,000 profit earned on the project and held the president personally liable. The Court of Appeal allowed the employer's appeal in part, ruling that the employer was only liable to pay commission on profits earned by the president's own entities and family, not third-party investors. The Court of Appeal allowed the president's appeal, dismissing the action against him because there was no legal basis to hold him personally liable for the employer's breach of contract.
Outcome
appeal allowed in part
Award
fifty percent of the profit from the Queen Street project earned by LPH, Gordon’s wife and Gordon’s two daughters
Key Factors
- employment contract interpretation
- post-termination profits
- breach of contract damages
- personal liability of corporate officer
- piercing the corporate veil
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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.