Recently, in Galea v. Wal-Mart (2017 ONSC 245) the Ontario Superior Court released a decision in a wrongful termination matter involving a Wal-Mart Executive Gail Galea (“Galea”) and the “reprehensible” termination conduct of Wal-Mart. In addition to the usual wrongful termination damages such as salary, benefits, bonuses, etc., the Court awarded a whopping $750,000.00 in moral and punitive damages combined.
The Supreme Court of Canada has confirmed a new common law duty to act honestly in the performance of contractual obligations.
Anyone following the financial news over the last number of years has no doubt noticed the increasing frequency with which corporations are merging, or being bought out by other corporations. This often results in efficiencies for the corporations, hopefully leading to greater profit. However, the impact on the employees is often overlooked. Whether the transaction is a share purchase, asset purchase, or other type of structure, the impact on the buyers and sellers is clear. However, the impact on the employees is often less certain.