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ARTICLE · 06 APRIL 2013

The HR Space: Punitive Damages Awards In Wrongful Dismissals Being Aggravated?

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The Supreme Court of Canada made it clear in its 2008 decision in Honda Canada v. Keays that punitive damages awards in wrongful dismissal cases are available only in exceptional circumstances.

CanadaEmployment and HR
David McDonald
David McDonald
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The Supreme Court of Canada made it clear in its 2008 decision in Honda Canada v. Keays that punitive damages awards in wrongful dismissal cases are available only in exceptional circumstances. The employer's conduct in the course of termination must be proven to be harsh, vindictive, reprehensible, and malicious. Despite this high threshold, a number of recent trial decisions show how courts are becoming more open to providing plaintiff employees with awards of punitive damages. 

Higginson v. Babine Forest Products is a recent decision of the BC Supreme Court. In this case, a long service employee (34 years) was terminated for cause from his position as an electrical supervisor. He sued. With a mill closure pending, his lawyer suggested that this termination was part of a larger plan to eliminate long service employees and avoid the costs of severance.

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