The plaintiff, former CEO of the defendants, sued for wrongful dismissal and related torts, alleging the defendants were common employers with his bankrupt direct employer and conspired to place it into bankruptcy to avoid paying his severance.
The defendants moved for summary judgment.
The court granted the motion and dismissed the plaintiff's claims, finding the tort claims were an impermissible collateral attack on the bankruptcy orders and lacked evidentiary support.
The court also held that the written employment agreements precluded a finding of common employer liability, and that a release executed by the plaintiff in favour of the bankrupt employer's trustee operated to release the defendants as alleged joint debtors in any event.