The respondent employee sued his former corporate employer and its directing mind for breach of an employment contract, claiming a 50 per cent commission on profits from a real estate project completed after his resignation.
The trial judge found both the corporation and the directing mind liable for the full 50 per cent of the profits, including those earned by third-party investors.
On appeal, the Court of Appeal upheld the finding that the contract entitled the employee to post-termination profits based on an objective interpretation of the agreement.
However, the Court allowed the appeal in part, holding that the employee was not entitled to profits earned by third-party investors, and dismissed the action against the directing mind personally, finding no basis to pierce the corporate veil.
