The defendant employer appealed a summary judgment decision awarding the plaintiff employee damages for wrongful dismissal, mental distress, and substantial indemnity costs.
The Divisional Court upheld the wrongful dismissal damages, finding no error in the motion judge's calculation of the notice period.
However, the court set aside the $7,500 award for mental distress, finding that the employer acted in good faith and there was insufficient evidence of compensable mental distress.
The court also allowed the appeal on costs, reducing the trial costs from $35,000 to $10,000, noting the motion judge failed to properly consider proportionality and the unreasonableness of the plaintiff's bill of costs.