The plaintiff, a former Senior Vice-President and Chief Financial Officer of Royal Group, Inc., sued for wrongful dismissal, claiming approximately $6.6 million in damages.
The defendant employer argued cause for dismissal based on the plaintiff's involvement in two instances of serious misconduct: the "Vaughan West land flip" and the misappropriation of a "Premdor warrant." Both involved the plaintiff's participation in schemes where senior officers, including himself, made secret profits at the corporation's expense and failed to disclose these conflicts of interest to the independent board of directors.
The court found that the plaintiff, as a fiduciary and senior employee, breached his duties of loyalty, honesty, candour, and fidelity by facilitating the usurpation of corporate opportunities, taking corporate funds without proper authority, and actively participating in deceptive practices, including back-dating documents for tax purposes.
The court dismissed the plaintiff's action, concluding that his conduct constituted just cause for summary dismissal, emphasizing the strictness of fiduciary duties in public corporations.
