Ontario Court of Appeal Upholds Waksdale – Overturns Superior Court Decision That Attempted to Distinguish It

On June 8, 2022, in Rahman v. Cannon Design Architecture Inc., the Court of Appeal reiterated that Waksdale is supreme in Ontario. The Decision Below In September 2021, a judge of the Superior Court determined on the facts of the case before him that a contractual provision in an employment agreement which denied entitlements upon…

Appellate Court Finds Non-Competition Clause in Employment Agreement to be Unenforceable

In M & P Drug Mart Inc. v Norton, the Ontario Court of Appeal upheld the decision of an application judge which had found a non-competition clause in an employment agreement to be ambiguous and overly broad, and therefore unenforceable. Background In 2014, Mr. Norton, with the assistance of legal counsel, entered into an employment…

Court Distinguishes Waksdale in Case Where Employer and Employee had Equal Bargaining Power in Negotiating Contract

In Rahman v Cannon Design Architecture Inc., a recent decision of the Ontario Superior Court of Justice, the Court distinguished the Ontario Court of Appeal’s landmark decision in Waksdale v Swegon North America, finding that on the facts of the case a provision which denied entitlements upon termination for just cause did not amount to…

Advantage CPD: Contracts – in the Wake of Waksdale and Ocean Nutrition

Please note registration for this event has closed. Fee: Complimentary Overview Both the Waksdale and Ocean Nutrition decisions have dramatically altered the legal landscape with respect to the enforceability and interpretation of employment contracts and incentive plans, and the potential scope of damages that may arise as a result of a termination of employment. The…

Supreme Court of Canada Denies Leave to Appeal in Case Where Termination Clause in Employment Contract Found to be Unenforceable

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…

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 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….

Ontario Bar Association (OBA): Employment Contracts – Understanding What`s in Them and Whether it`s Enforceable

Employment contracts can be valuable part of your employment agreement, either as an employer or employee. However, there are a number of tricky issues that need to be correctly drafted to ensure that they are enforceable and achieve the intended goals. Agenda Topic Termination provisions Frustration of contract Restrictive covenants Arbitration clauses How contracts are…

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…