Jury verdict in wrongful dismissal upheld on cause and Wallace damages, but notice reduced and punitive damages set aside.
The employee was dismissed for cause after making a threat of violence while on short-term disability.
A jury found no just cause for dismissal and awarded 9 months' notice, 4 months' Wallace damages, $1,000 in aggravated damages, and $22,000 in punitive damages.
The employer appealed.
The Court of Appeal upheld the jury's findings on lack of just cause and Wallace damages, but reduced the notice period to 4 months, finding 9 months unreasonable for a short-tenure, non-managerial employee.
The Court also set aside the aggravated and punitive damages because the jury had explicitly rejected the only pleaded independent actionable wrong (intentional infliction of mental distress).
Greg Sommerard v. I.B.M. Canada Ltd. and The Great-West Life Assurance Company, 2006 ONCA 9581