Shafron v. KRG Insurance Brokers (Western) Inc. – Supreme Court of Canada – January 23, 2009

Ambiguous terms in a restrictive covenant will not be remedied through notional severance and only narrowly through blue-pencil severance.

The recent Supreme Court of Canada decision on January 23, 2009 in Shafron v. KRG Insurance Brokers (Western) Inc. [2009] 1 S.C.R. 157 (“Shafron”) demonstrates the court’s reluctance to alter ambiguous terms in a restrictive covenant. Although the doctrine of severance may be applied in some cases, such amendments will only occur in very limited circumstances.

In Shafron, the employee was employed by the employer as an insurance salesman. read more »

Rejdak v. The Fight Network Inc. – Ontario Superior Court of Justice – July 29, 2008

An oral contract which precedes a written agreement will govern the employment relationship if there is no fresh consideration given in the written agreement and the employee acted on the oral contract to the point of not being able to refuse the written agreement.

The July 29, 2008 decision by the Ontario Superior Court of Justice in Rejdak v. The Fight Network Inc. [2008] O.J. No. 2995 (“Rejdak”) indicates that an oral employment contract will be found to govern the employment relationship instead of a written agreement that is signed later if there is no fresh consideration given to the employee in the second agreement and if the employee acted on the original agreement to the point of not being able to refuse the terms of the written agreement. read more »

Loehle v. Purolator Courier Ltd. – Ontario Superior Court of Justice – June 12, 2008

An employee cannot resign due to a fundamental change to their employment contract, but rather must seek new employment while still employed to fulfill their duty to mitigate.

The Ontario Superior Court of Justice’s recent decision on June 12, 2008 in Loehle v. Purolator Courier Ltd., [2008] O.J. No. 2462 (“Loehle”) seems to have altered the concept of constructive dismissal. The decision requires employees when faced with fundamental unilateral changes to their employment contract to not resign, but rather fulfill their now altered employment duties while seeking out new employment. If the employee does not continue working, then they will be found to have not fulfilled their duty to mitigate and may be barred from receiving any award of damages for constructive dismissal. read more »

Stewart v. DIGI Canada Inc. – Alberta Court of Queen’s Bench – November 2, 2007

The termination of a fixed-term employment contract by the employer prior to the completion term may result in the payment of the remaining balance as long as the contract was unambiguous and the employee mitigated their damages. read more »

Fidler v. Sun Life Assurance Co. of Canada – Supreme Court of Canada – June 29, 2006

An employee is only able to recover damages for mental distress due to the breach of a contract if it can be shown that such damages were within the reasonable contemplation of the parties at the time the contract was formed. read more »

Cimpean v. Payton – Ontario Superior Court of Justice – July 7, 2008

An employer may be found responsible for their employee’s off duty conduct if such conduct can be linked to the employer through such means as an employment contract. read more »

Palidwor v. Julian Ceramic Tile Inc. – British Columbia Court of Appeal – October 3, 2008

Absent any form of deceit, an employee’s actions made on the basis of a mistaken belief regarding the terms of their employment cannot justify termination for cause. read more »

Haglund v. Clean Harbors Canada Inc. – British Columbia Supreme Court – November 29, 2007

An employee’s mere dislike of a change to their employment contract and an employer’s attempt to remedy the negative results of such a change may bar a Court from finding that an employee was constructively dismissed. read more »

Doran v. Ontario Power Generation Inc. – Ontario Superior Court of Justice – November 16, 2007

Two or more breaches of an employment contract may become fundamental when considered together, thereby resulting in constructive dismissal. read more »

Dragone v. Riva Plumbing Ltd. – Ontario Superior Court of Justice – September 26, 2007

Employers must continue to provide an employee on disability with insurance benefits unless the employee has clearly and unequivocally resigned from their employment, the employee’s employment contract has been frustrated, or the employer provided the employee with reasonable notice that the insurance benefits would not be continued. read more »