Dismissal Without Cause (Age 50 to 65)(WDD-Professional)

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Date Retrieved:	2025-04-01
CLNP Page ID:	2481
Page Categories:	[WDD-Professional]
Citation:	Dismissal Without Cause (Age 50 to 65)(WDD-Professional), CLNP 2481, <>, retrieved on 2025-04-01
Editor:	Sharvey
Last Updated:	2025/03/05

Marshall v. Watson Wyatt & Co., 2002 CanLII 13354 (ON CA)

The plaintiff was a communications consultant. She accepted the defendant's offer of employment over a competing offer when told that she would be offered an equity position and a future role internationally. She was given the title of Director of Organizational Communications Practice Canada. Her employment was terminated a year later. She brought an action for damages for wrongful dismissal. The defendant alleged cause for dismissal, but by the time of the trial no longer disputed its liability to the plaintiff. Damages alone were in issue. The case was tried before a jury. The jury found that the plaintiff was entitled to damages equivalent to 12 months' notice, consisting of 9 months' reasonable notice and a further 3 months for bad faith conduct in the way the defendant dismissed her. The jury also awarded punitive damages of $75,000. The defendant appealed.

Held, the appeal should be allowed in part.

...

[50] Even if the Commission's view satisfies the independent actionable wrong requirement, and I doubt whether it does, a punitive damages award in this case serves no rational purpose. Ms. Marshall was awarded generous compensation equal to nine months' notice. That nine months was increased by three months because of the jury's finding that the way Watson Wyatt dismissed Ms. Marshall was unfair or in bad faith. Undoubtedly the jury relied on much the same evidence for both extending the notice period by three months and awarding punitive damages. In my view, the overall compensatory award of 12 months' notice -- which included a base salary of $112,500 for the second six months and a maximum bonus of $45,000 -- was more than adequate to express the jury's disapproval of Watson Wyatt's conduct and to deter similar conduct in the future. I would therefore set aside the award of $75,000 in punitive damages.

D. Disposition

[51] I would allow the appeal in part by setting aside the punitive damages award ($75,000) and directing the trial of an issue on the compensable revenue awarded Ms. Marshall in connection with the Montreal office ($46,330.30). I would therefore reduce Ms. Marshall's damages from $516,214.82 to $394,884.52. Correspondingly, I would reduce the amount of damages on which interest is to be paid from $441,214.82 to $394,884.52.

[52] Before addressing costs, I would give both parties an opportunity to make submissions in writing on both the costs of the trial and of the appeal. These submissions should be delivered within 30 days of the release of the court's reasons.

Appeal allowed in part.