Michael Church

The defendant employer brought a motion to strike paragraphs from the plaintiff's wrongful dismissal statement of claim that referred to a settlement offer and subsequent communications.

The plaintiff argued the communications were not privileged or, alternatively, fell under the exception for pleading bad faith.

The court found the communications were protected by settlement privilege and that the plaintiff's bad faith claim lacked an air of reality, as the dispute centered on a genuine disagreement over contract interpretation.

The motion to strike was largely granted.

The moving parties sought dismissal of a civil action brought by a former employee claiming damages relating to unpaid short‑term disability benefits and alleged breach of a settlement agreement.

The court held that the essential character of the dispute arose from the interpretation and administration of a collective agreement governing employment benefits.

Under the Labour Relations Act, such disputes fall within the exclusive jurisdiction of labour arbitration.

The court further held that even if jurisdiction existed, the claim was statute‑barred because the plaintiff knew or ought to have known by February 2009 that the benefits would not be paid, yet did not commence the action until June 2011.

The action was dismissed and costs were awarded against the plaintiff.