In a wrongful dismissal action, the court determined damages and costs following a summary judgment on liability.
The plaintiffs sought compensation for 26 months' notice, including pension contributions, Savings Plan contributions, and loss of benefits.
The defendant argued for deductions based on an expert report indicating an increase in the commuted value of the plaintiffs' pensions due to early termination, and disputed benefit calculations.
The court rejected the defendant's argument for pension value deductions, applying the principles from *IBM Canada Limited v. Waterman* that pension benefits are a form of retirement savings, not an indemnity for wage loss, and should not be deducted.
It also rejected the plaintiffs' claim for notional pension contributions, as no actual pension loss was proven.
For the Savings Plan, the court awarded 3% contributions throughout the notice period, finding that the plaintiffs should not be penalized for a plan change they could not elect to avoid due to termination.
For lost benefits, the court awarded 8% of base salary, based on the defendant's own evidence and the principle that retirement benefits do not offset lost employment benefits.
The plaintiffs were awarded damages of $328,505.00 and $260,640.60 respectively, plus pre-judgment interest, and costs of $75,000.
