This endorsement addresses the appropriate resolution of costs and clarification of damages following a wrongful dismissal summary judgment motion.
The court determined that for the purpose of comparing a judgment to a Rule 49 offer, damages awards for wrongful dismissal are reduced by statutory termination payments.
Consequently, the plaintiff did not obtain a result more favourable than their Rule 49 offer, nor did the defendant's offer trigger cost consequences under Rule 49.10(2) as the court's award exceeded it when statutory payments were factored in.
The court also ruled that tax consequences are not relevant in a Rule 49 analysis.
The plaintiff was awarded partial indemnity costs, and the net value of the judgment was clarified.
