The appellant was induced to leave secure employment and worked for the respondent for 14 years before being summarily discharged without explanation.
The employer maintained allegations of cause until the start of the trial.
The appellant, an undischarged bankrupt, sued for wrongful dismissal.
The Supreme Court of Canada held that an undischarged bankrupt can maintain an action for wrongful dismissal because damages in lieu of notice constitute exempt 'salary, wages or other remuneration' under the Bankruptcy Act.
The Court also held that while there is no separate tort of 'bad faith discharge', employers have an obligation of good faith and fair dealing in the manner of dismissal.
Breach of this obligation, as occurred here, justifies an extension of the reasonable notice period.
The trial judge's award of 24 months' notice was restored.
