In a recent decision, Ruston v. Keddco MFG, the Ontario Superior Court provided the Plaintiff, Mr. Ruston, with a massive award due to the Defendant Company, Keddco’s egregious mistreatment of their former employee. Mr. Ruston was the President of Keddco and was terminated due to fraud allegations. However, Keddco failed to provide Mr. Ruston with any further specifics to substantiate this allegation. The trial judge found that the Defendant had failed to prove cause and that there was no basis for the fraud allegations made by Keddco. Subsequently, the Court of Appeal dismissed the Defendant’s appeal, resulting in an award of over $600,000 plus interest and costs, including $100,000 in punitive damages and $25,000 in moral damages, to punish the corporation. This case serves as a harsh reminder for employers that the failure to act fairly and in good faith throughout the termination process can result in substantial financial liability and reputational harm.
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