Charles M. Loopstra Q.C.

The applicant brought an application to quash a resolution and by-law passed by the respondent municipality to conditionally appoint a member to fill a potential council vacancy.

The vacancy was anticipated because a sitting councillor was running in a provincial election.

The court found that the Municipal Act requires a vacancy to actually exist and be declared before an appointment can be made.

The resolution and by-law were quashed for illegality as they were passed without jurisdiction.

The appellants appealed a trial judgment awarding the respondent 34 months' notice (30 months base plus 4 months Wallace damages) for wrongful dismissal.

The Court of Appeal found that the trial judge erred in awarding a base notice period in excess of 24 months without exceptional circumstances, reducing the base period to 24 months.

The court upheld the 4-month Wallace extension due to the appellants' bad faith conduct during the dismissal.

The court also varied the prejudgment interest award, holding that interest should be calculated on an installment basis rather than a lump sum basis for the period during which salary continuance payments were made.