From: Angela Swan <aswan@airdberlis.com>
To: 'Richard Peltz-Steele' <rpeltzsteele@umassd.edu>
Harrington Matthew P. <matthew.p.harrington@umontreal.ca>
obligations@uwo.ca
Date: 31/10/2014 19:26:04 UTC
Subject: RE: Bad Faith Conduct in Employment Case

You might have a look at Tree Savers International Ltd. v. Savoy, (1992), 87 D.L.R. (4th) 202; [1992] 2 W.W.R 470 (ABCA), http://canlii.ca/t/1p6kd.

 

Angela Swan

 

 

From: Richard Peltz-Steele [mailto:rpeltzsteele@umassd.edu]
Sent: October-31-14 2:14 PM
To: Harrington Matthew P.; obligations@uwo.ca
Subject: Re: Bad Faith Conduct in Employment Case

 


So if you'll confess to a spot of laziness, I'll confess to seizing an excuse to procrastinate on writing today.

I love the question.  And I think the court's statement is indeed inconsistent with legal expectations.  The problem, seems to me, with wrongful discharge as frame, is that on its terms, the tort is set up only to contemplate pl. employee vs. def. employer, because the discharge is the operative conduct.

I looked through instead a load of cases on abandonment.  I figured there would be some there of employer vs. employee.  There were, but precious few, and they tended to be old.  Like dawn-of-the-Industrial-Revolution old.

The closest I came to fitting your bill--it doesn't--was Hammer v. Breidenbach, 31 Mo. 49 (1860).  A brewery proprietor sued his brewmaster for abandonment, but didn't win.  The two had contracted and agreed on a $500 penalty (not liquidated damages) if "good beer" didn't come from the relationship, which it didn't, so that was the damages claim.  But the employee won on grounds the proprietor had not furnished adequate equipment. 

As you might imagine, abandonment cases are virtually universally about employers defending with abandonment, not claiming for abandonment.  The employer seems lucky to get away without paying severance.

Your B.C. court has one thing going for it, I figure, which is that employers might bring different claims, such as tortious interference, breach of fiduciary duty, or conversion of trade secret or other business property.  The wrongful discharge parallel would have to be breach of an implied contract; maybe fiduciary duty comes closest. 

But I have trouble imagining the scenario where public policy provides the underpinning of the implied contract, the way it does in wrongful discharge.  Say, an employer suing for damages resulting from abandonment, when the employee left out of race-discriminatory motivation?  That seems a total non-starter.  The Washington State Supreme Court wrote, en banc, that "in the absence of a contract stating otherwise, an employee has the absolute right to abandon his or her employment at-will."  Ford v. Trendwest Resorts, Inc., 146 Wash. 2d 146, 152, 43 P.3d 1223, 1226 (2002).  The rule is a converse-corollary to the employer's right to terminate at will.  But the public policy exception doesn't seem to have a converse reflection.  So the B.C. court seems to have said too much.

Thanks for the distraction.  Now back to the grind....


Richard J. Peltz-Steele

http://ssrn.com/author=625107
Professor, UMass Law School
333 Faunce Corner Road
North Dartmouth, Mass. 02747 USA
+1 508-985-1102


From: "Harrington Matthew P." <matthew.p.harrington@umontreal.ca>
To: obligations@uwo.ca
Sent: Friday, October 31, 2014 1:21:00 PM
Subject: Bad Faith Conduct in Employment Case

Dear Friends:

 

I`m looking at cases where employers have been sued by employees for damages resulting from the manner of their discharge.  Canadian courts have a tendency to award damages (or extend the notice period) where the discharge is unduly harsh.

 

Obviously these cases involve claims that the employer just up and fired the employee without proper notice.

 

I`m especially intrigued by a passage in a BC opinion in which the court says:

 

“It is quite logical to imply that the parties to such a contract would, if they turned their minds to the issue, mutually agree that they would take steps to protect each other from harm…”  Deildal v. Tod Mountain (1997) 91 B.C.A.C. 215, para. 77.

 

I`m not sure that most employees do think that way.  I see the cases as running largely one way:  Employees suing employers for “bad faith” in the manner of discharge.  I`m being a bit lazy here, but I`m curious to know if anyone has come across a case wherein the employer sues the employee for just walking out.  I`m looking for cases where employers sue (and recover) in situations where the employee just walks out the door or stops showing up for work.

 

My guess is that most employers don’t think it worth the time, but that’s why I assume the statement of the court isn’t quite true.  I don’t think most employees, “if they turned their mind to it” would agree that they have a duty to protect their employer from harm.  I think in most cases they do think that they have a right to walk off the job without consequences, especially where they find a better job or where they are unhappy.

 

Any thoughts or ideas would be appreciated.

 

---------------------------------------------

Matthew P. Harrington

Professeur

Faculté de droit

Université de Montréal

Montréal, Québec

514.343.6105

matthew.p.harrington@umontreal.ca

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