Junaid Malik

The defendant employer brought a motion to sever the claims of four former senior employees who sued for constructive dismissal.

The plaintiffs alleged that the defendant made similar changes to their employment terms, including eliminating bonuses and altering reporting structures.

The court dismissed the motion, finding a sufficient nexus between the claims under Rule 5.02(1) of the Rules of Civil Procedure and concluding that severing the claims would cause undue complication, delay, and risk of inconsistent results.

The plaintiffs sued the defendants for breach of a royalty agreement and promissory note following the winding-up of an investment fund.

The court found the defendants breached the royalty agreement by discontinuing payments after the fund's termination, as the agreement provided for a "proportionate continuation" of royalties if a significant amount of unitholders reinvested in successor funds.

However, the court rejected claims of bad faith and the necessity of an Independent Review Committee (IRC) referral for the winding-up decision.

Damages were awarded based on a modified calculation of the proportionate continuation of royalties, significantly less than sought by the plaintiffs.