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News and Discussions on Payroll, HR & Employment Law

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Honda Canada Inc. v Keays

When will an employer be liable for bad faith damages?

Since the Supreme Court of Canada’s decision in Honda v. Keays, dismissed employees have increasingly sought bad faith damages in severance negotiations and wrongful dismissal actions. A key issue in these claims is whether the employer’s conduct was sufficiently egregious to justify these damages. The courts are clear that not every perceived offence or instance of misconduct will give rise to a finding of bad faith.

 

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Widespread confusion on how courts determine the amount of notice of dismissal

As I and others have frequently commented, there is widespread confusion and misunderstanding regarding how our courts determine the amount of notice of dismissal (sometimes referred to as “severance”) an employee is entitled to. The recent decision of the Saskatchewan Court of Queen’s Bench in Coppola v. Capital Pontiac Buick Cadillac GMC Ltd. provides a fairly thorough analysis.

 

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Update on damages arising out of bad faith in the course of dismissal: Soost vs. Merrill Lynch Canada Inc.

The Court of Appeal in Alberta has just ruled that there was no basis to award “The Damages Formerly Known as Wallace” in Soost v. Merrill Lynch Canada Inc., dramatically reducing the value of the award.

 

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