Will Income From A Second Job Be Considered Earnings In Mitigation?

In Pakozdi v. B & B Heavy Civil Construction Ltd., 2018 BCCA 23, the B.C. Court of Appeal clarified how to treat replacement income in the calculation of damages for a wrongfully dismissed employee.

Facts

Mr. Pakozdi was a 55-year old bid estimator and construction professional. He worked as a private consultant prior to the commencement of his employment with B & B in early January 2014.  B & B agreed that Mr. Pakozdi could continue providing consulting services to some of his personal clients while employed so long as that did not create a conflict of interest or interfere with his regular duties.

In January 2015, after approximately one year of employment, B & B terminated Mr. Pakozdi's employment without cause and provided him with $5,000 or approximately two weeks of notice. At the time of his dismissal, Mr. Pakozdi's salary was $130,000 a year.  While employed with B & B, he had also earned $30,900 from his consulting business, with his highest earnings