The applicant and the Commission alleged that the respondents breached a Memorandum of Settlement resolving a human rights complaint for sexual harassment.
The respondents failed to make two settlement payments on time and completely failed to comply with "public interest remedies" requiring them to post human rights notices, attend anti-discrimination training, and establish an anti-harassment policy.
The applicant sought general damages, damages for mental anguish, the replacement value of the public interest remedies, and legal costs.
The Tribunal held that a breach of settlement is essentially a breach of contract, and damages must be assessed under common law contractual principles (Hadley v. Baxendale).
The Tribunal found that damages for mental distress and the replacement value of the public interest remedies were not within the reasonable contemplation of the parties, especially given the settlement's entire agreement clause stating the monetary payment was the sole consideration.
The Tribunal awarded $200 in interest for the delayed payments and declined to award costs for lack of jurisdiction.
The Commission was given leave to request an order for specific performance of the public interest remedies against the individual respondents.