Dave J.G. McKechnie

Following the dismissal of the plaintiffs' constructive dismissal action, the defendant sought costs, arguing for substantial indemnity from the date of its Rule 49 offer.

The court held that Rule 49 does not apply when a plaintiff's claim fails entirely.

The court rejected the plaintiffs' argument that they were forced to proceed to trial because the defendant's offers were nominal.

The court awarded the successful defendant partial indemnity costs fixed at $50,000 plus HST.

The plaintiffs, a married couple who were long-term employees of the defendant, resigned and claimed constructive dismissal.

The wife had received a letter of reprimand for insubordination after refusing to start work earlier and being rude to a new manager.

The plaintiffs alleged the workplace was unsafe and unsanitary due to clutter, mice, and bats.

The court dismissed the action, finding the letter of reprimand was a moderate response to insubordination and the workplace conditions, while not ideal, did not amount to an unsafe environment or a fundamental change to the employment contract.

The plaintiffs' resignations were not justified on an objective standard.