The plaintiff, Craig Johnston, Chief Building Official for the Municipality of Arran-Elderslie, was summarily dismissed for alleged conflict of interest and deceit.
The Municipality claimed just cause based on Johnston designing and inspecting projects within the Municipality and allegedly concealing these conflicts.
The court found that Johnston was indeed in a conflict of interest but that the Municipality was estopped from relying on it due to its prior knowledge and approval of his private design work and its failure to appoint a backup inspector.
The court also found no evidence of deceit or fraud on Johnston's part.
The dismissal was deemed wrongful, and the court awarded damages for breach of contract, aggravated damages for the bad faith manner of dismissal, and punitive damages for the high-handed conduct of the Municipality.
