The plaintiffs, founders of a family-owned welding supply business, sued for wrongful dismissal after the business was sold to the manufacturer whose products they distributed.
The manufacturer argued that a term should be implied that the plaintiffs would retire upon the sale of the business given their senior age.
The court rejected this argument, finding that a term of reasonable notice is implied by law in employment contracts.
The court awarded 18 months' notice based on the plaintiffs' actual compensation, resulting in a joint and several damages award of over $1.1 million against the manufacturer and the business.
