Other decisions that have reduced the wrongful
dismissal damage award because the dismissed employee failed to properly mitigate his or her damages include Walsten v. Kinonjeoshtegon First Nation5, Ata v. Carter Pontiac Buick Ltd. 6 and Evans v. Teamsters Local Union No. 31.7
The purpose of wrongful
dismissal damage award is to compensate the dismissed employee for the employer's failure to provide sufficient notice of dismissal.
Not exact matches
Wallace determined that s. 68 applies to an
award for
damages for wrongful
dismissal.
It went on to state that if an employee can prove that the manner of
dismissal caused mental distress that was in the contemplation of the parties, that those
damages will be
awarded not through an arbitrary extension of the notice but through an
award that reflects the actual
damages.
Although the Court clarified that
damages based on the manner of
dismissal are still compensable, in essence, the Court's decision will limit or restrict the punitive or «deterrant» effect of such
awards and focus on compensating employees for actual losses suffered.
In one of the first court cases to consider this behaviour, an Alberta judge recognized that it is an implied term of every job that an employer will treat its employees with civility, decency, respect and dignity, and
awarded an employee
damages stemming from unnecessary criticisms and threats of
dismissal.
Whether you are an employee facing
dismissal, constructive or otherwise, or an employer contemplating
dismissal, the affect of a potential
award for punitive
damages must be considered from the outset.
The potential for such incalculable
awards, along with
damages for wrongful
dismissal, ups the ante of litigation, and thus, the gamble of having a case heard at trial.
Notably, in response to Ms. Strudwick's request to be
awarded an extended common law notice period because of the employer's conduct (she requested
damages equal to pay and benefits to age 65 on appeal), the Court of Appeal reiterated that common law
damages for wrongful
dismissal are intended to give employees what they reasonably need to support themselves until they find a new job, and not to compensate them until retirement.
Mr. Arnone cross-appealed, seeking to increase the
damages awarded for wrongful
dismissal and to increase the amount
awarded for his costs to a substantial indemnity level.
In granting Mr. Arnone's appeal, increasing the amount
awarded for wrongful
dismissal damages from 16.8 months to 22 months the Honourable Justice David M. Brown, newly of the Court of Appeal for Ontario, wrote the following:
Seven of the nine judges who heard the case agreed: «Honda's conduct in dismissing Keays was in no way an egregious display of bad faith justifying an
award of
damages for conduct in
dismissal.»
The trial judge
awarded damages for wrongful
dismissal of 15 months» pay in lieu of notice, net of Workplace Safety and Insurance Board [«WSIB»] benefits the appellant received during that period, and $ 10,000 in
damages for breach of the Code.
How much medical evidence must a party seeking
damages for mental stress caused by the manner of his or her
dismissal from employment, i.e. moral
damages or «Wallace»
damages, lead at trial in order to receive an
award of the same?
Employment lawyers will recognise this principle expressed in the rule governing the
award of
damages in wrongful
dismissal cases set out in Gunton.
While the statutory cap on compensation for unfair
dismissal has crept upwards (it is now # 63,500) the rules governing the
award of
damages for wrongful
dismissal have remained, for the most part, not only stable but also consistent with the general principles of contract law.
The trial judge also
awarded Mr. Lau $ 30,000 in aggravated
damages for the manner of
dismissal.
At trial, Mr. Soost was
awarded a full year's income of $ 600,000 as
damages for the failure of Merrill Lynch to give him adequate notice of his
dismissal, plus an additional $ 1.6 million for the loss of his clients, or book of business.
Rejecting the company's argument that where pregnancy is not a factor in the
dismissal, it should not be a factor in calculating
damages, the court
awarded Harris an additional two months» severance, concluding she deserved more than a non-pregnant employee would receive.
Importantly, the Court of Appeal also concluded that Zochem's cursory investigation and
dismissal of the sexual harassment complaint were proper considerations for the moral
damages award.
Recently, a judge in New Brunswick agreed with Drapeau and
awarded him
damages for constructive
dismissal.
Since
damages can be
awarded for breaches of contract, a breach has to be an «unlawful» act, i.e., an act that attracts a sanction, the proposed rule would be impossibly wide: we recognize the unlawful element when we refer to wrongful
dismissals.
The Bank was not able to prove those allegations and the plaintiff was
awarded wrongful
dismissal and moral
damages.
Agreeing with Evans that to expect him to return to his old job would be unreasonable, the trial judge
awarded him $ 100,000 in severance, known as wrongful
dismissal damages.
In a wrongful
dismissal action a breach by the employer of its contractual duty of good faith and fair dealing can be classified as an actionable wrong that may entitle the dismissed employee to an
award of punitive
damages.
Altus Group Ltd. now faces the prospect of not only paying a $ 100,000.00 punitive
damage award, wrongful
dismissal damages and Gordon's legal costs but also dealing with the reputational
damage of having been publicly punished for having engaged in a highly unethical business practice.
The plaintiff alleged in the statement of claim that the Bank displayed the same tactics and approach in his
dismissal as in earlier
dismissal, which had resulted in court
awards of punitive
damages against the bank.
The availability of an increased punitive
damage award in a wrongful
dismissal action because of a bad faith employer policy was recognized in Hodson v. Canadian Imperial Bank of Commerce.2 The Divisional Court considered an appeal of an order striking paragraphs in the plaintiff's statement of claim that alleged that the Bank had an ongoing corporate strategy of terminating employees for cause to avoid having to provide unwanted employees with a severance package.
The presence of the camera in Ms. Colwell's office without her knowledge, consent or even a good reason amounted to a poisoned workplace, and on that basis she was
awarded damages for constructive
dismissal.
Punitive
damage awards in other wrongful
dismissal cases have been far more modest even in the face of serious misconduct such as slander of the employee.
However, Justice Truscott refused to
award damages for wrongful
dismissal finding that she had not made any efforts to find alternative work after her
dismissal because her husband's salary was sufficient to provide for the family.
With precedent - setting cases
awarding these
damages, as well as for invasion of privacy, intentional infliction of mental suffering, defamation, loss of reputation, breach of fiduciary duty and even negligence, garden variety
dismissals now flirt with becoming significant lawsuits.
, pursuant to section 45 of the law governing EI, if someone receives EI and then is later
awarded wrongful
dismissal damages, the wrongfully dismissed employee must legally repay EI a portion of what is
awarded as wrongful
dismissal damages.
The
award of
damages for wrongful
dismissal was accordingly reduced to reflect a reasonable notice period of four months.
Ultimately, the court
awarded Mr. Papp with just over $ 17,000 in
damages for his wrongful
dismissal, but the court did not
award anything more.
Bad faith
damages: Aside from typical severance - like
damages for wrongful
dismissal, the most often
awarded «add - on»
damages are for an employer's bad faith behaviour at the time of an employee's termination.
The Court of Appeal held that moral
damages, on the other hand, are
awarded as a result of
dismissal where the employer has conducted itself in a manner that is unfair or in bad faith, and which results in mental distress.
An Ontario court recently
awarded a dismissed employee wrongful
dismissal damages in spite of findings to the effect that the high - level employee had persistently failed to satisfy the employer's reasonable performance standards and had also been provided with repeated warnings and resources to assist him in meeting those standards.
In addition to wrongful
dismissal damages, the trial judge
awarded Doyle $ 25,000 in
damages for violations of the Code, finding that Doyle's gender and her sexual harassment complaint were likely the most significant reasons for her termination.
Aggravated
damages:
Awarded to compensate for intangible injuries, such as mental distress or where it can be shown that there was a wrong committed that was separate from the
dismissal itself and aggravated the employee's harm as a result.
Can a trial court
award aggravated
damages to an employee who claims wrongful
dismissal absent a finding of actual mental distress being suffered by that employee?
The jury found for the plaintiff and
awarded 20 weeks salary in
damages, the amount specified in her employment contract, $ 200,000 in aggravated
damages against the employer for the manner of
dismissal, and $ 1,000,000 in punitive
damages.
An additional $ 60 000 was
awarded for the bad faith
dismissal to compensate the employee for moral
damages suffered, with all the aforementioned factors considered.
More worrisome, unlike wrongful
dismissal awards, Wallace
damages are unregulated, unpredictable and virtually unlimited.
Employers face the risk of being penalized with an
award of extended
damages if the
dismissal is found to be in bad faith.
In that case, while the claim for wrongful
dismissal may have failed, (but consider the decision in Davidson v. Tahtsa Timber Ltd., 2010 BCCA 528, which provided for «nominal
damages» for the
dismissal even where none were warranted for wrongful
dismissal damages), the court could still have
awarded Human Rights
damages, I would argue.
The Supreme Court of Canada in Wallace v. United Grain Growers Ltd1 set out examples of bad faith employer conduct at the time of
dismissal that will justify an
award of moral
damages.
Unlike an
award of
damages for wrongful
dismissal, it is not taxable.
The Court of Appeal held today in the case of Small v The Shrewsbury and Telford Hospitals NHS Trust [1] that an employment tribunal should consider of its own motion
awarding stigma
damages to a successful employee in a whistleblowing
dismissal case even where it is not raised on behalf of the employee, where the evidence warranted it.
Decisions that predate Honda are easily spotted because the court will refer to the
award of
damages for bad faith
dismissal as «Wallace»
damages rather than moral
damages.