Salesman awarded $500,000 even though he left before land deal was completed

Employment contract still valid, says Ontario court
|Canadian Employment Law Today

The Ontario Superior Court of Justice has awarded $500,000 to an former employee of a property developer who left the company by the time a proposal he had brought yielded a profit.

Michael Dumbrell started working for the Regional Group of Companies Inc. in November 1998. Regional is an umbrella group of seven property and land development companies run by Steven Gordon. Dumbrell’s employment agreement, thoroughly revised by Gordon, called for him to not be paid a salary other than 50 per cent of net profits from ventures he brought to fruition.

Dumbrell worked for Regional for about a year. He spent much of the time trying to put together a deal for a piece of property in downtown Ottawa. In October 1999 Sam Grosz, a friend and business partner of Gordon, visited Ottawa and was shown the Ottawa site. Grosz became interested and entered into a joint venture with another property developer to buy and sell the land. Gordon was invited into the venture for having brought it to Grosz’s attention.