Former employee entitled to commission on property he found during his employment

Employee did the groundwork for real estate deal employer consummated after he left
By Jeffrey R. Smith
|Canadian Employment Law Today

A former employee of a real estate developer is entitled to his share of the profit from a property he found during his employment, the Ontario Court of Appeal has ruled.

Michael Dumbrell worked for the Regional Group of Companies, Inc., an Ottawa real estate business, for one year beginning in November 1998. His job was to find commercial real estate projects, bring them to Regional and be involved in their purchase and development. According to his contract, Dumbrell was paid a commission which was a percentage of the profits from property sales.

In early 1999, Dumbrell found a property which he felt presented a good opportunity for profitable development. He informed Regional and prepared an offer on its behalf. The offer was refused and Regional’s CEO, Steven Gordon, told him he was no longer interested in the property.