Ontario Court of Appeal Upholds Malicious Prosecution Finding Against Municipality, Reduces Punitive Damages

In a cautionary tale for employers, the Court of Appeal for Ontario has upheld a lower court decision which found a Township guilty of malicious prosecution in its actions relating to a dismissed employee. The quantum of punitive damages awarded is also a stark reminder that employee terminations must be conducted in a fair and…

Ontario Court of Appeal Decision Underscores Importance of Properly Drafted Restrictive Covenants

A recent decision of the Court of Appeal for Ontario reinforces the importance of carefully drafting restrictive covenants and considering what evidence is necessary to succeed on a summary judgment motion. The claim arose when individual employees left their employer to work for a competitor. The former employees were all subject to the same “non-competition”…

Is Drinking and Driving Cause for Dismissal?

In some circumstances, yes. In the recent decision of Dziecielski v. Lighting Dimensions Inc., the employee drove a company vehicle while intoxicated. He was returning to the workplace from a customer visit and a lunch where he drank four beers, when he was involved in a car accident which destroyed the vehicle and left him…

Dismissals Under the Canada Labour Code

In a recent decision, Atomic Energy of Canada Limited v. Wilson, the Federal Court considered the unjust dismissal provision of the Canada Labour Code (“Code”) and concluded that it does not prohibit federally regulated employers from conducting without cause dismissals. This decision arose out of an unjust dismissal complaint under section 240 of the Code….

OCA Affirms Termination Clause in Employment Contract Does Not Violate ESA

The Court of Appeal for Ontario has upheld a motion judge’s finding that a termination provision in an employment contract was not an attempt to contract out of the Employment Standards Act, 2000 (“ESA”). In Dimson v. KTI Kanatek Technologies Inc., the plaintiff had been terminated and in accordance with his employment contract, he was…

New High Water Mark for Punitive Damages Award: $4.5 Million

A recent decision of the Court of Queen’s Bench for Saskatchewan, which granted an injured worker $4.5 million in punitive damages, has garnered considerable media attention. The plaintiff, Mr. Branco, was a Canadian citizen. He sued his employer (Kumtor, owned by Saskatchewan-based Cameco) and insurers AIG and Zurich Life in relation to benefits arising from…

Alberta Court of Appeal Considers Restrictive Covenants and Fiduciary Duties

In Evans v. The Sports Corporation, the Alberta Court of Appeal provides some important guidance on what classes of employees will be considered fiduciaries and what type of conduct will constitute solicitation of clients. Richard Evans was employed for six years by The Sports Corporation (“TSC”) as a sports agent responsible for TSC prospects and…

Court of Appeal for Ontario Finds Restrictive Covenants Unreasonable and Unenforceable

In Martin v. ConCreate USL Limited Partnership, a decision released yesterday, the Court of Appeal for Ontario determined that the restrictive covenants included in sale of business agreements were unenforceable.  Among other things, the Court found that the duration for the covenants was unreasonable because it was “for an indeterminate period, and there is no fixed,…