On Friday morning the Supreme Court of Canada released its
decision in Potter v. New Brunswick Legal Aid Services
Commission. The decision related to whether and in what
circumstances an employee is deemed to be constructively dismissed
when suspended with pay. Overturning the decision of the New
Brunswick Court of Appeal, which upheld the lower court decision,
the Supreme Court unanimously determined (with concurring reasons)
that David Potter was constructively dismissed from his position as
the Executive Director of Legal Aid.
Mr. Potter was initially hired for a seven-year term. Roughly
half way into his seven-year term, Mr. Potter and the Board of
Directors had entered into discussions to negotiate a buyout of his
contract. However, before negotiations were completed, Mr. Potter
went on sick leave. Shortly before he was to return from sick
leave, the Board informed him that he "ought not" to
return to the workplace. Upon seeking clarification, Mr. Potter