The appellant employee, who suffered from hypertension, was summarily dismissed by his employer.
The employer alleged just cause for dismissal, claiming the employee had been dishonest about his medical condition and available treatments.
At trial, the jury found in favour of the employee, awarding damages including an extended notice period and aggravated damages.
The Court of Appeal ordered a new trial, holding that any dishonesty by an employee constitutes just cause for dismissal.
The Supreme Court of Canada allowed the appeal, establishing that whether an employer is justified in dismissing an employee for dishonesty requires a contextual approach.
The test is whether the employee's dishonesty gave rise to a breakdown in the employment relationship.
The Court restored the jury's verdict on all issues except aggravated damages, finding insufficient evidence of a separate actionable wrong to support that award.
