In this wrongful dismissal appeal, the employer challenged findings respecting frustration of contract, deduction of Workers’ Compensation Benefits, aggravated damages, and costs, while the employee cross-appealed the deduction issue and the dismissal of punitive damages.
The court held the employer could not invoke frustration after abandoning justification for dismissal, and confirmed that Workers’ Compensation Benefits received during the notice period were deductible but not subject to tax gross-up.
The court set aside aggravated damages because the conduct relied upon fell outside the pleadings as particularized and lacked an adequate evidentiary foundation.
The cross-appeal was dismissed, and the trial costs award was left undisturbed.