The plaintiff employer brought an action alleging breach of contract, breach of fiduciary duty, negligent misrepresentation, and intentional interference with economic relations against a former senior executive.
After the defendant’s statement of defence was struck and the defendant was noted in default, the matter proceeded as an uncontested trial where the plaintiff sought liquidated damages including repayment of salary and benefits, costs related to employees hired on the defendant’s recommendation, interest on a business loan obtained based on the defendant’s advice, and unpaid client invoices.
The court found the defendant had engaged in serious misconduct, including falsifying records and impersonating the company’s president, which could justify dismissal for cause.
However, the court held that an employer cannot recover all compensation paid to an employee merely because the employee’s performance was dishonest or deficient.
The plaintiff failed to establish entitlement to the claimed liquidated damages and the action for those damages was dismissed.
