When Hurt Feelings Aren't Enough: Aggravated Damages In Wrongful Dismissal Cases

Originally published on August 2, 2017

In a recent decision, the BC Court of Appeal overturned a trial judgment awarding aggravated damages to a plaintiff who had been wrongfully dismissed from his employment.

In Lau v. Royal Bank of Canada, 2017 BCCA 253  [Lau], the plaintiff, a mutual fund sales representative, was terminated for falsifying bank records and for not telling the truth during an investigation into the complaint that led to his dismissal. The defendant bank alleged that he was terminated for cause, but the trial judge found that the termination was wrongful. The trial judge held that the plaintiff had been telling the truth when the bank confronted him with the allegations and, although the judge found that he had committed misconduct by recording renewed or retained investments as new sales, that misconduct did not justify termination.