Tag: Wallace damages

Keays vs. Honda One Year Later: Have Canadian Courts Changed Their Approach to Punitive and Bad Faith Damages?

It has been just over a year since the Supreme Court of Canada (SCC) issued its decision in Keays v. Honda Canada Inc. (Read our analysis of the court’s decision in that case). That decision mandated a change in Canadian courts’ approach to awarding damages in employment cases. Damages for bad faith conduct by the […]

Supreme Court Reverses Largest Wrongful Dismissal Punitive Damages Award in Canadian History

By Kate McNeill, Kelly McDermott, and Donovan Plomp McCarthy Tetrault On Friday, June 27, 2008, the Supreme Court of Canada (SCC) released its decision in Honda Canada Inc. v. Keays, reversing the largest award of punitive damages in a wrongful dismissal action in Canadian history. The decision is very favorable for employers. Background Kevin Keays […]

New Limits Placed on ‘Bad Faith’ Damages in Terminations

by Helen Gray McCarthy Tetrault A recent decision of the Ontario Court of Appeal places new limits on a trial judge’s ability to award damages for conduct on the part of an employer during the termination process that is said to amount to “bad faith.” While it’s an Ontario decision, it can be expected to […]

Supreme Court of Canada Broadens Dismissed Employee’s Duty to Minimize Damages

By Rachel Ravary and Philippe Lacoursière McCarthy Tetrault Chalk one up for employers! In an era when the courts seem to be on a slippery slope of broadening employee rights, Canada’s highest court has given employers a break when it comes to assessing the costs of dismissing an employee without cause. In its decision earlier […]

Terminating for cause? How to limit your liability in Canada

By Karen Sargeant and Brian P. Smeenk You’ve likely been in this situation before: One of your employees has engaged in questionable conduct. You’re in the process of investigating and are considering whether you should terminate the employee for cause. How do you go about it under Canadian employment laws? Be careful Terminating an employee’s […]

Don’t Let ‘Enhanced’ Severance Be a Surprise During Terminations

McCarthy Tetrault Since the concept of at-will employment isn’t recognized in Canada, U.S. employers need to understand how terminations are handled in their operations north of the border. Are you confident that your termination decisions are in line with Canadian law? And what about the “enhanced” severance known as “Wallace damages”? Are you clear on […]