Anne Kyle Gallop

The defendant employer brought a motion to strike portions of an amended statement of claim in a wrongful dismissal action under Rules 21.01(1)(b) and 25.11(b) of the Rules of Civil Procedure.

The impugned pleadings related to claims for aggravated damages ("Keays damages") and punitive damages based on alleged bad faith in the manner of dismissal and alleged reprisals for whistleblowing concerning marketing practices.

The court held that it was not plain and obvious that the allegations failed to disclose a reasonable cause of action, emphasizing that damages for mental distress and punitive damages may arise from bad faith conduct in dismissal even where termination is without cause.

However, several paragraphs were struck for being unclear and unintelligible, with leave granted to replead them in plain language.

The plaintiff brought a motion under Rule 26.01 of the Rules of Civil Procedure to amend a statement of claim in a wrongful dismissal action to add claims for bad faith and punitive damages.

The proposed amendments alleged that the employer failed to investigate alleged misconduct and terminated the employee for refusing to participate in conduct contrary to the employer’s code of conduct.

The court held that reasons for dismissal are generally irrelevant to damages in wrongful dismissal and that the pleadings did not disclose actual damages arising from the manner of dismissal as required for Wallace damages.

The proposed allegations also failed to establish an independent actionable wrong necessary to sustain a punitive damages claim.

Leave to amend was therefore refused.