Good Faith — Ontario Employment Law

ITCAD Tech Inc. v. P. et. al.

Employment: Punitive Damages & Non-Compete Enforceability

This is an appeal and cross-appeal decision from the Divisional Court concerning an employment dispute involving the withholding of earned compensation and the enforceability of a restrictive covenant. The court addressed whether the employer's conduct met the threshold for punitive damages under Whiten and found the 12-month non-competition covenant unenforceable as it was used to circumvent the loss of vendor status. The appeal and cross-appeal regarding punitive damages were dismissed.

M. v. Enthusiast Gaming Inc.

M. v. Enthusiast Gaming: Share Vesting Appeal

This is an appeal to the Court of Appeal from a motion judge's summary judgment decision about a financial consultant's entitlement to unvested stock options. The plaintiffs, a consultant and his corporation, were retained by the defendant gaming company for financial services, but the relationship was terminated after five months. The motion judge decided that the consultant was not entitled to shares and options scheduled to vest at 12 and 24 months because the agreement was not a fixed-term contract and required his continued active service. The Court of Appeal agreed, finding that a vesting schedule does not automatically create a fixed-term contract. The appeal was dismissed, meaning the consultant's claim remains dismissed.

Riva Plumbing Limited v. F.

Fiduciary Duties & Non-Compete: Riva Plumbing v. F.

This case addresses breaches of fiduciary duties and non-competition agreements by a former director and duties of good faith by employees who planned a competing business. The court found no breach of fiduciary or non-compete obligations due to lack of evidence of competition or misuse of confidential information. Additionally, the court awarded pro-rated bonuses to employees who resigned before the fiscal year-end, determining the bonuses were integral to compensation.

P. v. Costco Wholesale Canada Ltd.

This is a wrongful dismissal case involving a dispute over whether the employer had just cause for dismissal following a demotion. The legal issues center on the reasonableness of the notice period and the employer's duty of good faith in the manner of dismissal.

M. v. Lev 2 Inc.

Wrongful Dismissal: Post-Termination Conduct & Punitive Damages

This is an interlocutory motion regarding leave to amend a Statement of Claim in a wrongful dismissal case. The plaintiff sought to add allegations of attempted fraud, specifically the employer's attempt to falsify employment records, to support claims for aggravated and punitive damages. The court analyzed whether this alleged post-termination conduct and litigation misconduct fell within the Honda Canada Inc. v. Keays framework for damages related to the manner of dismissal.

G. v. UTS Consultants Inc.

Termination Clause Void: 27-Year Employee Awarded 24 Months Notice

This wrongful dismissal case addressed the enforceability of a termination clause that excluded prior service and the continuity of employment following a resignation from corporate roles. The court awarded 24 months' reasonable notice based on the Bardal factors for a 27-year employee and determined that lost bonuses and benefits were recoverable as damages, while finding no breach of the duty of good faith in the manner of dismissal.

V.P.M. Marketing v. J.

Dependent Contractor: 20 Years Service & Fiduciary Breach

This case addresses whether the defendant was a dependent contractor owing fiduciary duties to the plaintiff, determined by 20 years of exclusive work and economic reliance. The court found the defendant breached these duties through pre-termination solicitation of clients and secretive conduct, violating the duty of honest performance. Damages were awarded for lost profits, and punitive damages were granted due to the high-handed nature of the misconduct.

M. v. Information Systems Architects Inc.

Fixed-Term Independent Contractor - No Duty to Mitigate

This is an appeal to the Court of Appeal from a motion judge's decision granting summary judgment to an independent contractor. The contractor signed a fixed-term contract but was terminated after one month due to a dated criminal record he had previously disclosed. The motion judge found the employer breached its duty of good faith and awarded damages for the unexpired term with no duty to mitigate. The Court of Appeal dismissed the appeal, holding that the duty of good faith applied and that the principle of no duty to mitigate for fixed-term contracts applies to independent contractors in these circumstances.

V. v. Joynt-Dent Inc.

Wrongful Dismissal: 33-Year Employee Awarded 24 Months Notice

This wrongful dismissal case involved a dental hygienist with 33 years of service who was terminated without cause. The court awarded 24 months' notice, applying the Bardal factors and finding the plaintiff's mitigation efforts reasonable despite declining offers of continued employment with altered terms. The court also imposed a trust on mitigation income and dismissed claims against individual corporate officers.

Galea v. Wal-Mart Canada Corp.

Wrongful Dismissal: Moral and Punitive Damages for Bad Faith

This wrongful dismissal case addresses the employer's duty of good faith and fair dealing in the manner of dismissal, specifically regarding pre-termination and post-termination conduct. The court found the employer's conduct misleading and unduly insensitive, awarding moral damages for the resulting mental distress and punitive damages for highhanded behavior. Additionally, the court interpreted a Covenant Not to Compete Agreement as a binding employment contract, awarding transition payments and benefits.

S. v. Claron Technology Inc.

S. v. Claron Technology: Stock Options & Oppression

This is an appeal from a decision concerning an employment contract dispute over stock options. The Court of Appeal for Ontario dismissed the appeal, upholding the lower court's finding that the stock option plan formed part of the employment agreement and that the employer's differential treatment of the employee constituted oppression under the Ontario Business Corporations Act.

G. v The Hospital for Sick Children

Wrongful Dismissal: Physician's Claim Dismissed

This wrongful dismissal case involved a physician employed by a hospital who challenged the termination of his employment based on licensing requirements. The court found no breach by the employer of the agreement, and found that the employer acted within its contractual terms and in good faith. Consequently, the plaintiff was not entitled to damages for wrongful dismissal, defamation, or punitive damages.

Doyle v. Zochem Inc.

Doyle v. Zochem: Moral Damages for Insensitive Dismissal

This is an appeal from a wrongful dismissal decision involving an employee terminated without cause. The Court of Appeal for Ontario addressed whether moral damages of $60,000 were justified due to the employer's insensitive and misleading conduct, applying the Honda Canada Inc. v. Keays framework. The court also considered the overlap between moral damages and damages under the Human Rights Code for sexual harassment, and awarded substantial indemnity costs against the appellant.

J. v Simmons da Silva LLP

J. v Simmons da Silva LLP: Resignation Ambiguity

This is a summary judgment motion addressing whether the plaintiff's actions constituted a clear and unequivocal resignation or if the employer breached its duty of good faith by failing to clarify the plaintiff's ambiguous intent. The court analyzed the contextual circumstances, including the plaintiff's emotional distress and the employer's failure to inquire, to determine if a valid resignation occurred and what damages, if any, were owed for wrongful dismissal.

Evans v Paradigm Capital Inc.

Constructive dismissal: 11 months' notice awarded

The plaintiff, a 44-year-old Senior Institutional Salesperson, sued for constructive dismissal after his employer made unilateral changes to his role. The employer argued he failed to mitigate his damages by refusing to accept the revised role. The trial judge found the plaintiff was constructively dismissed and awarded 11 months' reasonable notice, which included compensation for performance and shareholders' bonuses over the notice period.

N. v Select Wine Merchants Ltd.

Probationary Dismissal: Good Faith and Notice

This is an appeal from a trial judge's decision in a wrongful dismissal case involving a probationary employee. The central issue was whether the employer acted in good faith and applied the correct suitability test when terminating the employee during a six-month probationary period, and whether the employee was entitled to common law reasonable notice. The Divisional Court found that the trial judge erred in awarding damages, holding that probationary employment is inherently tentative and does not guarantee long-term employment.

P. v. eHealth Ontario

Class Action: eHealth Ontario Performance Plan Breach

This is a class action certification motion involving eHealth Ontario employees who alleged breach of contract and bad faith regarding the non-payment of Performance Awards and Merit Increases. The court addressed whether the suspension of the Performance Incentive Plan was lawful and whether the pleadings disclosed a reasonable cause of action for breach of contract and inducing breach of contract. Certification was granted for three of the four claims advanced by the plaintiffs.

W. v. Ritz Lutheran Villa

Wrongful Dismissal: 13.5-Year Employee Awarded 10 Months Notice

A wrongful dismissal case where an employee with 13.5 years of service was terminated without notice or severance for allegedly violating employer policies by accompanying a resident on a cruise. The court found the termination unjustified due to inconsistent policy application and lack of progressive discipline, awarded 10 months' notice, and calculated damages of $28,159.03 based on wages, benefits, and mitigation efforts.

GasTOPS Ltd. v. F.

This is a legal dispute concerning the duties and liability of former employees and their new company, specifically focusing on the duty of good faith owed by an employee to their employer, involving claims for breach of fiduciary duty, breach of confidence, and breach of employment contract.

C.-K. v. Oakville Skating Club

Employment Contract: Good Faith Dispute

This is a contractual dispute involving an employment relationship, specifically focusing on the duty of good faith within a contract of employment. The case addresses legal issues surrounding the obligations of parties in an employment context.