Just Cause Terminations: Even Lawyers Get It Wrong. And In The Case Of Ojanen V. Acumen Law Corporation, Very Wrong.

• Published date: 28 July 2021
• Subject Matter: Employment and HR, Contract of Employment, Unfair/ Wrongful Dismissal
• Law Firm: EKB | Edwards, Kenny & Bray LLP
• Author: Ms Kirstn Mase

It is well established that employers owe an obligation of good faith and fair dealing at the time of terminating an employee. This obligation requires employers to be reasonable, honest and to refrain from bad faith actions. The failure to act in such a manner can result in significant damages against the employer. In the case of Ojanen v. Acumen Law Corporation, 2021 BCCA 189, the bad faith actions of one employer resulted in an astonishing damages award.

In Ojanen v. Acumen Law Corporation, 2021 BCCA 189, Acumen Law Corporation ("Acumen") was found to have acted unlawfully in terminating an articling student. Specifically, their actions in terminating the employee were described as "unnecessary and psychologically brutal" and their response to certain actions by the employee were found to be "disproportionate and bullying". The result of Acumen's actions was an outstanding damages award made against them in the amount of $193,944.

This interesting case serves as a stark warning to employers to act respectfully, particularly at the time of termination, or risk a significant damages award.

FACTS

Ojanen was employed at Acumen as an articled student. Only a few months into Ojanen's articling period, issues arose between her and her employer to the point where Acumen believed they had cause to terminate her employment. Acumen claimed cause on the basis that Ojanen was (a) setting herself up to compete with Acumen by creating a law blog; and (b) that she had committed theft while attending the office after hours. Instead of discussing either of the aforementioned issues with Ojanen, Acumen decided to terminate her employment for cause. While this decision is concerning in itself, as cause is a high threshold to meet, the real issue relates to the manner in which Acumen terminated Ojanen. Acumen terminated Ojanen by serving her with a letter and a lawsuit for a claim of theft while she was attending the mandatory legal training course all articling students must complete to become lawyers. Shockingly, these documents were served on Ojanen in front of all her classmates.

Ojanen commenced a lawsuit for wrongful dismissal. She was successful at trial and was awarded $18,934 for breach of the employment contract and $50,000 for aggravated damages.

Acumen appealed the award on the basis that Ojanen was not wrongfully dismissed. Ojanen cross appealed seeking punitive damages and general damages for the loss of opportunity to become a lawyer. Acumen's appeal was...