2 total
Wrongful dismissal damages reduced for failure to mitigate; aggravated and punitive damages for bad faith upheld.
The employee was constructively dismissed from her position as Chief Operating Officer after requesting a salary increase.
The employer alleged cause but later withdrew the defence, though it continued to assert performance issues throughout the litigation.
The motion judge awarded 12 months' notice, $50,000 in aggravated damages for bad faith in the manner of dismissal, and $25,000 in punitive damages for reprehensible litigation conduct.
On appeal, the Court of Appeal upheld the notice period and the aggravated and punitive damages awards, but reduced the damages in lieu of notice to six months' compensation because the employee had unreasonably rejected a comparable job offer seven months post-termination.
Summary judgment granted for wrongful dismissal; termination provision voided and aggravated/punitive damages awarded for toxic workplace.
The plaintiff brought a motion for summary judgment claiming damages for wrongful dismissal, aggravated damages, and punitive damages.
The defendant employer initially terminated the plaintiff for cause but later withdrew the allegation, relying instead on a without cause termination provision in her employment agreement.
The court found the termination provision void for lack of consideration and held that the employer's conduct—including creating a toxic workplace, suspending her, and making unfounded cause allegations—amounted to a repudiation of the contract.
The court awarded 11 months' reasonable notice, $50,000 in aggravated damages, and $25,000 in punitive damages.
