BC Supreme Court - $100,000 Punitive Damage Award

In Marchen v. Dams Ford Lincoln Sales Ltd. 2009 BCSC 400, the Honourable Mr. Justice Goepel of the British Columbia Supreme Court handed down a significant decision on March 26, 2009, involving employment law issues.

The defendant car dealership dismissed an apprentice mechanic without alleging cause but because of an honestly held but completely unfounded belief that he may have been involved in dishonest activity on the part of his brother.

The court refused to order "moral damages" following Honda Canada Inc. v. Keays, 2008 SCC 39, [2008] 2 S.C.R 362, because at the time of dismissal, the employer's conduct could be explained as, at least, a belief in possible misconduct.

However, the court awarded $100,000 in punitive damages because, when the action was commenced, the defendant embarked on a course of action intended to mislead the plaintiff and eventually the court itself as to the real reasons for dismissal.

The defendant falsely claimed that the dismissal was for lack of work, which would have been a legitimate way to end the apprenticeship contract.

The defendant's conduct after the dismissal was found to be blameworthy pursuant to the principles in Whiten v. Pilot Insurance Co., 2002 SCC 18, [2002]1 S.C.R. 595.

The case is an example of an instance where an individual is wrongfully dismissed during the currency of an apprenticeship contract and receives additional damages for "loss of status" and "loss of training".