The Ontario Court of Appeal in Ruston v. Keddco Mfg (2011) Ltd., 2019
ONCA 125, upheld the lower court's decision awarding over $1.1
million in damages in a wrongful dismissal action.
Facts
Mr. Ruston, the President of
Keddco, was terminated after 11 years of service. At the
termination meeting, Mr. Rushton was advised that his employment
was terminated for cause because he had committed fraud, but no
specifics were provided by Keddco.
In response to Mr. Ruston advising
that he was going to consult a lawyer, Keddco threatened that it
would counter-claim for fraud and that it would be very expensive
for Mr. Rushton. Indeed, when Mr. Ruston commenced a wrongful
dismissal action, Keddco filed a statement of defence making
numerous allegations of cause and including a counter-claim for
$1,700,000 in damages based in unjust enrichment, breach of
fiduciary duty and civil fraud. At trial, Keddco led no evidence
with respect to many of its allegations of cause and on
