Kathryn L. Meehan

The appellant received notice of fundamental changes to his employment contract in July 2007, with working notice until September 1, 2009.

In October 2008, the respondents sought to impose immediate changes requiring the appellant to close his neighbourhood office and relocate to an Allstate-operated office.

The appellant refused and was terminated for cause on November 6, 2008.

The trial judge found the termination was proper.

On appeal, the court found that the Neighbourhood Office Agent Amendment (NOA) precluded the respondents from unilaterally imposing the relocation during the notice period, as it constituted a fundamental change to the agreed business model.

The appeal was allowed in part, with the appellant entitled to compensation for the balance of the notice period.

Following a trial, the parties agreed that the partial indemnity costs recovery figure would be $60,000, subject to arguments on the appropriate scale.

The defendants sought substantial indemnity costs, relying on a Rule 49 offer and the plaintiff's alleged unreasonable behaviour.

The court rejected the defendants' arguments for substantial indemnity costs and ordered the plaintiff to pay the agreed partial indemnity costs of $60,000.

The plaintiff, a long-term sales agent, was terminated for cause by the defendant insurance company after refusing to accept fundamental changes to his employment terms, including relocation and a new compensation model.

The court found that the employer provided reasonable notice of the changes and that the plaintiff's refusal to comply constituted insubordination and abandonment of employment.

The court dismissed the plaintiff's claims for wrongful dismissal and damages, including claims for ongoing commissions and 'lifetime renewals', finding that the employment contract provisions ceased upon termination for cause and that the plaintiff failed to mitigate damages by refusing a reasonable offer of continued employment.