The respondent was appointed as a Commissioner of the Public Utilities Board, holding office during good behaviour until age 70.
The provincial government subsequently passed legislation restructuring the Board and abolishing the respondent's position without providing compensation.
The respondent sued for damages for breach of contract.
The Supreme Court of Canada held that the employment relationship between the Crown and a senior civil servant is contractual.
While the legislature has the power to eliminate the position, it cannot escape the financial consequences of breaching the employment contract without explicit statutory language extinguishing the right to compensation.
The appeal was dismissed, affirming the award of damages equivalent to two and one-half years of salary plus pension benefits.
