CEO ’s damages include everything from notice period, even though he was gone

|Canadian Employment Law Today

Martell v. Ewos Canada Ltd., 2005 CarswellBC 59, 2005 BCSC 43 (B.C. S.C.)

Denis Martell was hired by Ewos Canada Ltd. to be the president and chief executive officer of General Sea Harvest Ltd. (GSH), a new fish farming company in British Columbia. A similar operation owned by Ewos had not been particularly successful, but the operation set up by Martell did very well.

He was made president and CEO of Ewos Canada and the second-in-command of Ewos Division, a larger entity with a number of international operations. In September 1999, after discussions with the managing director to whom he reported, he signed a formal employment agreement with the company. The managing director had told him the company would not write into a contract a severance package of more than 12 months’ salary; but they reached a compromise whereby the company agreed that in the event of termination the 12-month payment would not restrict Martell’s entitlements under the law.