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The Court of Appeal upheld a wrongful dismissal judgment including a 19-month notice period, aggravated damages, and punitive damages for the employer's bad faith conduct.
The appellant employer appealed a trial judgment awarding the respondent employee damages for wrongful dismissal.
The trial judge found no cause for termination and awarded damages based on a 19-month notice period, a 2015 bonus, aggravated damages of $25,000, and punitive damages of $100,000.
The appellant challenged each component of the award.
The Court of Appeal dismissed the appeal, finding no reversible errors of law or palpable and overriding errors of fact.
The court upheld the trial judge's reasoning on the notice period, bonus entitlement, aggravated damages based on the employer's threatening conduct and bad faith, and punitive damages reflecting the employer's strategic use of a counter-claim to intimidate the employee.
The successful plaintiff was awarded full substantial indemnity costs due to the defendant's severe litigation misconduct.
Following a successful 11-day trial where the plaintiff was awarded $604,627.09 and the defendant's $1.75 million counterclaim was dismissed, the plaintiff sought substantial indemnity costs of $546,684.73.
The defendant argued for a reduced award of $200,000, claiming the plaintiff's costs were unreasonable.
The court awarded the plaintiff the full amount claimed, finding the costs proportionate to the result, justified by the defendant's unfounded fraud allegations, litigation misconduct (including refusal to admit facts, late disclosure, and causing trial delays), and the complexity introduced by the counterclaim.
The court also noted the plaintiff's counsel's superior preparedness compared to the defendant's.
