The defendant brought a motion for summary judgment dismissing a wrongful dismissal action and argued that prior findings in a defamation proceeding barred the plaintiffs from introducing additional affidavit evidence under the doctrines of res judicata, issue estoppel, and abuse of process.
The defendant asserted that the earlier decision had already determined that surveillance cameras were installed to intercept private communications, constituting a criminal act justifying termination under the management consulting agreement.
The court held that the earlier decision only determined that private communications had been intercepted under the Criminal Code and did not determine whether the conduct constituted a criminal act of dishonesty resulting in personal gain as required under the contract.
Because the issues in the contractual termination clause had not been fully adjudicated, the prerequisites for issue estoppel were not met.
The court exercised its discretion to permit the plaintiffs to rely on the proposed affidavits in defending the summary judgment motion.
