In the recent case of Quach v. Mitrux Services Ltd., 2020 BCCA 25 (CanLII), the British Colombia
Court of Appeal clarified how mitigation applies to fixed-term
contracts, commented on when aggravated damages may be awarded in
wrongful dismissal cases, and mused about the necessity of fresh
consideration to ensure the enforceability of new contractual
terms.
In this case, the dispute between the parties arose when Mr.
Quach’s employment was terminated prior to his start date.
Mr. Quach had initially entered into a fixed-term employment
contract, drafted by his lawyers, with a termination provision that
allowed the employer to terminate employment by paying out the
remainder of fixed-term. After the contract was signed, the
employer had misgivings about the fixed-term and required Mr. Quach
to enter into a new contract to waive the first agreement and
provide for indefinite employment with termination of employment by
the employer without cause on four weeks’ notice. At
