Mark v. Westend Development Corp. (2002), 2002 CarswellOnt 2231 (Ont. S.C.J.)
The plaintiff was employed by the defendant, a property management company, for three years as an administrative assistant. Her salary was $30,425 annually plus benefits. She had a BA in psychology and a certificate in law-office administration.
She was 31 when she was terminated by the defendant. The plaintiff brought an action against the employer for damages for wrongful dismissal and an action against the sole shareholder, director and president of the company personally for retaliatory and abusive discharge, bad-faith discharge and inducing breach of contract. Punitive and aggravated damages and damages for mental distress and breach of fiduciary obligations were claimed in both actions.
The court held the employer’s letter to the plaintiff, which stated, “should you decide not to resign voluntarily, we will forthwith deliver the attached dismissal for you,” constituted constructive dismissal and held the employer liable for damages for wrongful dismissal.
The court also found the president of the company should be held personally liable for inducing breach of contract since he had “engineered” the plaintiff’s dismissal due to the fact the employee had been vocal about the company engaging in illegal acts.
The court held the plaintiff was entitled to five months’ pay in lieu of notice plus an additional two months for Wallace-type damages (bad-faith discharge). The amount of damages for inducing breach of contract was held to be the equivalent of that which was recoverable for breach of the employment contract.
The plaintiff was employed by the defendant, a property management company, for three years as an administrative assistant. Her salary was $30,425 annually plus benefits. She had a BA in psychology and a certificate in law-office administration.
She was 31 when she was terminated by the defendant. The plaintiff brought an action against the employer for damages for wrongful dismissal and an action against the sole shareholder, director and president of the company personally for retaliatory and abusive discharge, bad-faith discharge and inducing breach of contract. Punitive and aggravated damages and damages for mental distress and breach of fiduciary obligations were claimed in both actions.
The court held the employer’s letter to the plaintiff, which stated, “should you decide not to resign voluntarily, we will forthwith deliver the attached dismissal for you,” constituted constructive dismissal and held the employer liable for damages for wrongful dismissal.
The court also found the president of the company should be held personally liable for inducing breach of contract since he had “engineered” the plaintiff’s dismissal due to the fact the employee had been vocal about the company engaging in illegal acts.
The court held the plaintiff was entitled to five months’ pay in lieu of notice plus an additional two months for Wallace-type damages (bad-faith discharge). The amount of damages for inducing breach of contract was held to be the equivalent of that which was recoverable for breach of the employment contract.
