Exceptional Damage Awards

Summary Wallace Part 2 Cases

This is a summary of awards of lost income caused by unfair conduct. A similar summary of post Honda and pre Honda awards for extended notice (pre Honda), aggravated and punitive damages (post Honda) is reviewed here (pre Honda) and here (post Honda).

Case

Date Order

Details Aggravated

Other Claims

Punitive
Rahemtulla v VanFed Credit Union

BCSC 1984

 

Pre Wallace decision

The employee, a bank teller, was accused of theft and summarily dismissed.  The accusation was false, and she had no opportunity to respond to the accusation, nor was a proper investigation made.  McLachlin J (as she then was) found the employer’s conduct was made in “threatening circumstances of the utmost gravity”.  She found the conduct “equally reprehensible as that of a person posing as a military policeman and accusing another of corresponding with a German spy.”

Court determined longer period of unemployment would follow due to unfair allegations.

$5,000 for the intentional infliction of mental suffering; Awarded 6 months notice to bank teller of 15 months employment;
Deidal v Tod Mountain

B.C.S.C. 1995;

Upheld in B.C. Court of Appeal

April 1997

 

Pre Wallace decision

Employee terminated in the context of false allegations of dishonesty which would impact employment elsewhere due to other employers having misgivings about his or her character.

The trial judge had allowed for a 15 month notice period of $60,000; damages for slander of $50,000; aggravated damages of $25,000; The award totaled $135,000.

An alternative award was made of 33 months notice in the same amount.

The two decisions of the majority were each concurring reasons. The total trial award was upheld. There was no pleading made of defamation. Braidwood J.A.’s reasons came to the same total of $135,000, which is hard to decipher in the reasons.

 

 

$50,000 for the increased difficulty in finding new employment and $25,000 for mental distress, both recoverable as aggravated damages (Finch, J.A.)

Braidwood, J.A. allowed for 27 months plus a further 6 months for total award of $135,000;

Wallace 1997  
Zadorozniak v. Community Futures

BCSC

Jan 2005

Plff was publicly humiliated, before the Board, the staff, and the town of Merritt. Board members entered his office, lunged at him to unplug his computer, pinned him to the wall and called the police upon his pushing back.

“it is also reasonable to infer an effect on his ability to obtain other employment, given the importance of his job in such a small town and the public nature of the dismissal.  Indeed, Mr. Zadorozniak has left no stone unturned in seeking other employment and has been unsuccessful.”

Plff was general manager of the defendant, 49 years of age, with 14 months service. Wallace factors allowed notice set at 1 year.

Increased notice period to 1 year, from 6 months.
 
Downham v County of Lennox and Addington,

OSC Dec 2005

Biased, shoddy investigation;

Employer intended to cause not only mental distress but social and economic damage. Para 239

By generating a substantially false investigation report which was circulated to senior staff and politicians in a small community and by the grossly exaggerated content of the letter of dismissal, the County created a stigma which prevented plff from finding alternate employment.  The County must be responsible for this longer period of unemployment and not just the period of notice justified by the Bardal factors.

 

$50,000 plus tort of intentional infliction of mental suffering of $20,000 and 5 months incremental notice;

Defamation $1,000

$100,000
Headley v City of Toronto

August 2019

Unfounded allegations of theft; refusal to reply to requests for a reference letter;

Flawed investigation

The finding was made that the allegations made it more difficult for the plaintiff to find comparable employment.

$15,000

$50,000 for compensation in difficulty to find alternate employment