Largest Punitive Damage Award for an Employment Case in Canada

On June 29, 2012 Chris Forguson completed a 3 week jury trial in Prince George.  

The plaintiff, Larry Higginson had been dismissed from the Babine sawmill in Burns Lake in October, 2009.  The Babine sawmill had been acquired in November 2006 by Hampton Lumber Mills Inc. based in Portland, Oregon.  Babine Forest Products Inc. and Hampton Lumber Mills Inc. were joint defendants.  

The defendants alleged cause for dismissal and paid Mr. Higginson no severance after 34 years of faithful service.  In the lawsuit, Mr. Higginson took the position that the cause for dismissal was essentially concocted by the defendants as a way to get rid of him without paying any severance.  Mr. Higginson further alleged that his dismissal was part of a scheme to avoid severance costs for long service employees and that Hampton Lumber Mills was responsible for this scheme and for his dismissal.  

After a 3 week trial, the jury determined that there had been no cause to dismiss Mr. Higginson and awarded $236,000 in compensatory damages for wrongful dismissal.  The jury further awarded $573,000 in punitive damages against the defendants for the conduct which gave rise to Mr. Higginson’s dismissal.  

This is the largest punitive damage award arising from an employment case in Canada.