2 total
Punitive damages upheld for withholding contractor pay; non-competition clause unenforceable after vendor lost government status.
ITCAD, a vendor of record for the Ontario government, appealed a summary judgment decision awarding punitive damages to the respondent consultants for withholding their pay.
The consultants cross-appealed the motion judge's finding that they breached a non-competition clause.
The Divisional Court dismissed ITCAD's appeal, upholding the punitive damages award as ITCAD's conduct in withholding pay to force the consultants to sign with another vendor was unacceptable.
The Court allowed the cross-appeal, finding the non-competition clause unenforceable because ITCAD lost its vendor of record status and was using the clause to circumvent the government's decision, which was contrary to public policy.
Divisional Court fixed costs of a settled appeal at $8,820.63 rather than referring to assessment.
The parties settled an appeal, agreeing that costs would be agreed to or assessed.
No agreement was reached.
The respondent on the appeal asked the court to fix and award the costs of the appeal, while the appellants requested a referral to an assessment officer.
The Divisional Court held that the matter was not complex and retained its discretion to fix costs.
The court awarded the respondent $5,820.63 for the appeal and $3,000 for the appearance.
