Michael Tamblyn

The appellant employer appealed a trial judgment finding it had constructively dismissed the respondent employee and awarding damages including amounts for broker warrants and interest on capital.

The Court of Appeal upheld the finding of constructive dismissal, agreeing that the employer's demand that the employee share his role as head of the corporate finance department constituted a fundamental change to his employment contract.

However, the Court allowed the appeal in part, setting aside the damages awarded for broker warrants because they had no value on the termination date, and setting aside the award of interest on the employee's capital because the shareholder agreement expressly precluded it.