The plaintiff, a senior executive at RBC, was dismissed following an investigation into his financial dealings with a subordinate.
He sued for wrongful dismissal, claiming entitlement to 24 months' reasonable notice under Ontario common law.
RBC argued the employment contract was governed by UK law, which limited notice to 12 weeks, and alternatively pleaded after-acquired cause based on the plaintiff's dishonesty during the investigation.
The court held that UK law governed the contract and the plaintiff had received his contractual notice.
Furthermore, the court found that RBC had established after-acquired cause because the plaintiff deliberately withheld material information about his real estate investments with the subordinate during the investigation.
The plaintiff's claim was dismissed, save for unpaid vested compensation, and RBC's counterclaim for mistaken tax overpayments was allowed.
