On March 18, 2021, the Supreme Court of Canada dismissed an application for leave to appeal from a decision of the New Brunswick Court of Appeal, Abrams v. RTO Asset Management. In that case, the New Brunswick Court of Appeal (Court) held an employer could not assert that dismissal was for cause where the employer’s…
Publication Name: Case In Point
Appellate Court Considers Contractual Rights Upon Termination in Light of Ocean Nutrition and Affirms Original Decision
In Mikelsteins v. Morrison Hershfield Limited, the Ontario Court of Appeal confirmed its earlier finding that an employee’s common law entitlements upon termination of employment are distinct from any rights the employee may have under a shareholder agreement where they have purchased the shares separate and apart from their compensation structure. Background In June…
Court Awards 5 Months’ Notice to Plaintiff with 4.5 Months’ Service and Who Was Pregnant at Time of Dismissal
In a recent summary judgment decision, Nahum v. Honeycomb Hospitality Inc., the Ontario Superior Court awarded 5 months’ reasonable notice to a plaintiff with 4.5 months’ service. In doing so, the Court found that the fact that the plaintiff was 5 months pregnant at the time of termination was an “important factor” in assessing her…
Supreme Court of Canada Clarifies Principle of Good Faith in Contracts
On February 5, 2021, the Supreme Court of Canada released its decision Wastech Services Ltd. v. Greater Vancouver Sewerage and Drainage District, in which it commented on and clarified the principle of good faith in contracts, a principle previously recognized by the Court in Bhasin v. Hrynew. Background The case involved a contract between…
Ontario Court of Appeal Finds Anti-SLAPP Motions Can Apply To Causes of Action Beyond Defamation
The Ontario Court of Appeal recently released two decisions which consider the Strategic Litigation Against Public Participation (SLAPP) provisions of the Courts of Justice Act. The provisions are aimed at discouraging actions that have the harmful effect of chilling individuals and organizations from speaking out on matters of public interest. The first decision of the…
Ontario Court of Appeal Upholds $1.27 Million Damages Award Against Employer for Breach of Fixed-Term Employment Contract
In McGuinty v. 1845035 Ontario Inc. (McGuinty Funeral Home), the Ontario Court of Appeal upheld a lower court decision awarding the respondent over $1.27 million in damages for constructive dismissal. Background The respondent had sold his family’s funeral business to the appellant employer and entered into a 10-year transitional consulting services agreement (TCSA) in 2012….
Supreme Court of Canada Considers Duty of Good Faith Performance of Contracts
In one of its final decisions of 2020, C.M. Callow Inc. v. Zollinger, the Supreme Court of Canada held that parties to any and all contracts (which would include employment contracts) cannot lie or otherwise knowingly deceive each other about matters directly linked to the performance of the contract. This type of deceptive conduct is…
Supreme Court of Canada Considers Ontario’s “Anti-SLAPP” Legislation
The Supreme Court of Canada recently released companion decisions interpreting Ontario’s “anti-SLAPP” legislation. The decisions, Bent et al. v. Platnick, et al. and 1704604 Ontario Ltd. v. Pointes Protection Association, et al. were the first to consider the new statutory regime under s. 137.1 of the Courts of Justice Act. The anti-SLAPP (“strategic litigation against…
Ontario Court of Appeal Comments on Notice Entitlements Following an Asset Transaction
In Manthadi v. ASCO Manufacturing, the Ontario Court of Appeal unanimously found that summary judgment was not appropriate in a case where a plaintiff was awarded 20 months’ reasonable notice damages after one month service with a company (Purchaser) that had bought the assets of her former employer (Vendor). The Court set aside the summary…
Arbitrator Provides Guidance for Employers Managing Commute to Work Accommodation Requests, Self-Reported Medical Restrictions, and Surveillance Evidence
In Toronto District School Board v Local 4400, Canadian Union of Public Employees, Arbitrator Stout dismissed an allegation of disability-related discrimination and failure to accommodate in the context of a commute to work. The case elaborates on the reasoning of Arbitrator Nyman in Ontario Secondary School Teachers’ Federation and Toronto District School Board, Grievance #…