In this wrongful dismissal appeal, the appellants challenged a trial judgment awarding damages for dismissal without cause.
The court held that the respondent was a key, valuable and trusted employee who stood in a fiduciary relationship to his employer and was required to act with loyalty, good faith, honesty, and full disclosure.
By secretly pursuing a business opportunity for his own company while employed, using employer time and equipment, and intending to compete with the employer without disclosure or consent, the respondent breached those fiduciary duties.
Pre-employment comments about an aspiration to start a future business did not satisfy the later duty of full disclosure.
The appeal was allowed, the trial judgment was set aside, and the action was dismissed with costs.