Allison v. Noranda Inc., 2001 NBCA 67
Jurisdiction | New Brunswick |
Judge | Ayles, Turnbull and Robertson, JJ.A. |
Neutral Citation | 2001 NBCA 67 |
Citation | 2001 NBCA 67,(2001), 239 N.B.R.(2d) 211 (CA),239 NBR (2d) 211,[2001] NBJ No 241 (QL),9 CCEL (3d) 280,239 N.B.R.(2d) 211,239 NBR(2d) 211,(2001), 239 NBR(2d) 211 (CA),[2001] N.B.J. No 241 (QL) |
Date | 30 January 2001 |
Court | Court of Appeal (New Brunswick) |
Allison v. Noranda Inc. (2001), 239 N.B.R.(2d) 211 (CA);
239 R.N.-B.(2e) 211; 619 A.P.R. 211
MLB headnote and full text
[French language version follows English language version]
[La version française vient à la suite de la version anglaise]
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Temp. Cite: [2001] N.B.R.(2d) TBEd. JL.007
Weldon Allison (plaintiff/appellant) v. Noranda Inc. and Noranda Mining and Exploration Inc., doing business as "Heath Steel Division" (defendants/respondents)
(138/2000/CA; 2001 NBCA 67)
Indexed As: Allison v. Noranda Inc. et al.
New Brunswick Court of Appeal
Ayles, Turnbull and Robertson, JJ.A.
June 22, 2001.
Summary:
Allison, aged 53, was terminated without cause. He was asked to elect one of two "separation pay" options. Under both options the total amount of severance monies remained constant. The "lump sum option" would see Allison terminated immediately, and in return he would receive a one-time payment. Under the "installment option", Allison's employment would technically continue, without the obligation to continue working, and severance monies would be paid to him in 16 equal monthly installments until he reached age 55. Allison chose the lump sum option. When Allison turned 55, he became entitled to a monthly pension. He then learned that choosing the lump sum option had reduced his monthly pension entitlement from $887 to $302. Allison sued his employer, alleging negligent misrepresentation for failing to disclose this information to him at the time he was terminated.
The New Brunswick Court of Queen's Bench, in a decision reported at [2000] N.B.R.(2d) Uned. 91, dismissed the action. Allison appealed.
The New Brunswick Court of Appeal allowed the appeal.
Fraud and Misrepresentation - Topic 2508
Misrepresentation - General principles - Negligent misrepresentation - [See Fraud and Misrepresentation - Topic 2705].
Fraud and Misrepresentation - Topic 2705
Misrepresentation - What constitutes misrepresentation - Falsity by omission - Allison, aged 53, was terminated by Noranda without cause - Regarding severance pay, he was asked to elect between a "lump sum option" and an "installment option", where his employment would technically continue, and severance monies would be paid to him in 16 equal monthly installments until he reached age 55 - Allison chose the lump sum option - When Allison turned 55, he learned that choosing the lump sum option had reduced his monthly pension entitlement from $887 to $302 - Allison sued Noranda, alleging negligent misrepresentation for failing to disclose this information to him at the time he was terminated - The New Brunswick Court of Appeal held that Noranda was under a duty to disclose the pension consequences of the two options - Moreover, failure to do so constituted a misrepresentation that misled Allison - See paragraphs 19 to 28.
Fraud and Misrepresentation - Topic 2821
Misrepresentation - Defences - General - Allison, aged 53, was terminated by Noranda without cause - Regarding severance pay, he was asked to elect between a "lump sum option" and an "installment option" - Allison chose the lump sum option - When Allison turned 55, he learned that choosing the lump sum option had reduced his monthly pension entitlement from $887 to $302 - Allison sued Noranda, alleging negligent misrepresentation for failing to disclose this information to him at the time he was terminated - Noranda countered that it had expressly cautioned Allison to seek independent advice - The New Brunswick Court of Appeal held that "a person who is under an obligation to disclose information to another, and fails to do so, cannot avoid liability for negligent misrepresentation simply by arguing that the latter was given the opportunity to seek advice from a third party" - See paragraphs 30 to 33.
Fraud and Misrepresentation - Topic 2824
Misrepresentation - Defences - Agreement excluding liability - Allison, aged 53, was terminated by Noranda without cause - Regarding severance pay, he was asked to elect between a "lump sum option" and an "installment option" - Allison chose the lump sum option - When Allison turned 55, he learned that choosing the lump sum option had reduced his monthly pension entitlement from $887 to $302 - Allison sued Noranda, alleging negligent misrepresentation for failing to disclose this information to him at the time he was terminated - Noranda countered that Allison had signed a release - The New Brunswick Court of Appeal stated that "the true purpose or import of the release is to limit Noranda's liability in contract for damages flowing from any wrongful dismissal arising from the decision to terminate Mr. Allison's employment by fixing the amount of separation pay to which he is entitled. There is nothing in the release that contradicts or is inconsistent with the tortious claim of negligent misrepresentation" - See paragraphs 34 to 41.
Torts - Topic 8990
Duty of care - Particular relationships - Negligent words - Failure to supply advice - [See Fraud and Misrepresentation - Topic 2705].
Cases Noticed:
Queen (D.J.) v. Cognos Inc., [1993] 1 S.C.R. 87; 147 N.R. 169; 60 O.A.C. 1, appld. [para. 17].
Gauthier v. Canada (Attorney General) (2000), 225 N.B.R.(2d) 211; 578 A.P.R. 211 (C.A.), refd to. [para. 17].
Spinks v. Canada, [1996] 2 F.C. 563; 195 N.R. 184 (F.C.A.), refd to. [para. 26].
BG Checo International Ltd. v. British Columbia Hydro and Power Authority, [1993] 1 S.C.R. 12; 147 N.R. 81; 20 B.C.A.C. 241; 35 W.A.C. 241, refd to. [para. 35].
Kripps et al. v. Touche Ross & Co. et al., [1999] 3 W.W.R. 629 (B.C.S.C.), refd to. [para. 43].
Authors and Works Noticed:
Blom, J., Contract and Tort - Negligent Misstatement Inducing Contract - Concurrent Liability - Effect of Contractual Terms (1994), 73 Can. Bar Rev. 243, generally [para. 36].
Feldthusen, Bruce, Economic Negligence (4th Ed. 2000), p. 113 [para. 43].
Counsel:
B. Richard Bell, for the appellant;
David M. Norman, Q.C., for the respondents.
This appeal was heard on January 30, 2001, by Ayles, Turnbull and Robertson, JJ.A., of the New Brunswick Court of Appeal. Robertson, J.A., delivered the following decision for the court on June 22, 2001.
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Table of Cases
...Ltd v Adams, [1992] OJ No 2148 (Gen Div) ..................................... 11, 143, 147, 564, 565, 598, 603 Allison v Noranda Inc, 2001 NBCA 67 ............................................................... 261 AM International Inc Employee Pension Plans (Trustee of), [1982] OJ No 1090......
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Table of Cases
...O.T.C. 783, 14 C.C.E.L. (3d) 31, [2001] O.J. No. 4266 (S.C.J.) ....................................... 328 Allison v. Noranda Inc. (2001), 239 N.B.R. (2d) 211, 9 C.C.E.L. (3d) 280, [2001] N.B.J. No. 241 (C.A.) .......................................................................... 40 All......
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Table of cases
...2148 (Gen. Div.) ..................................................... 10, 153, 158, 569, 570, 603, 608 Allison v. Noranda Inc. (2001), 239 N.B.R. (2d) 211, 28 C.C.P.B. 1, [2001] N.B.J. No. 241 (C.A.) ........................................................................ 277 AM Internatio......
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Table of Cases
...OJ No 2148 (Gen Div) ......................................................... 11, 149, 155, 577, 578, 610, 616 Allison v Noranda Inc, 2001 NBCA 67 .............................................................. 267 Alyea v Alyea, 2016 ONSC 4878 ....................................................
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Albionex (Overseas) Ltd. et al. v. ConAgra Ltd. et al., (2011) 270 Man.R.(2d) 293 (CA)
...Black v. Lakefield (Village) (1998), 113 O.A.C. 74; 41 O.R.(3d) 741 (C.A.), refd to. [para. 112]. Allison v. Noranda Inc. et al. (2001), 239 N.B.R.(2d) 211; 619 A.P.R. 211; 2001 NBCA 67, refd to. [para. 115]. Spinks v. Canada, [1996] 2 F.C. 563; 195 N.R. 184 (F.C.A.), refd to. [para. 115]. ......
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Doucet et al. v. Canada (Attorney General), (2007) 327 N.B.R.(2d) 329 (TD)
...v. Canada (Attorney General) (2000), 225 N.B.R.(2d) 211; 578 A.P.R. 211 (C.A.), consd. [para. 100]. Allison v. Noranda Inc. et al. (2001), 239 N.B.R.(2d) 211; 619 A.P.R. 211 (C.A.), consd. [para. 100]. Hercules Management Ltd. et al. v. Ernst & Young et al., [1997] 2 S.C.R. 165; 211 N.R......
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Grams et al. v. Maple Leaf Metal Industries Ltd. et al.,
...20]. Tarailo v. Allied Chemical Canada Ltd. (1989), 68 O.R.(2d) 288 (H.C.), refd to. [para. 20]. Allison v. Noranda Inc. et al. (2001), 239 N.B.R.(2d) 211; 619 A.P.R. 211 (C.A.), refd to. [para. Barclay v. Sooter Studios Ltd. et al., [2001] B.C.T.C. 476 ; 2001 BCSC 476 , refd to. [par......
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Savoury v. Nova Scotia (Attorney General), (2013) 328 N.S.R.(2d) 268 (CA)
...[para. 62]. Spinks v . Canada, [1996] 2 F.C. 563 ; 195 N.R. 184 (F.C.A.), refd to. [para. 62]. Allison v. Noranda Inc. et al. (2001), 239 N.B.R.(2d) 211; 619 A.P.R. 211 ; 2001 NBCA 67 , refd to. [para. Hedley Byrne & Co. v. Heller and Partners Ltd., [1963] 2 All E.R. 575 (H.L.),......
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Pension Claims In Employee Termination Cases
...Supervisory Authorities, Guideline No. 3: Guidelines for Capital Accumulation Plans, May 28, 2004. 12 Ibid s 7.2.1. 13 Allison v Noranda, 2001 NBCA 67, 619 APR 14 Ibid at 289-90. 15 Oosterbosch v FAG Aerospace, 2011 ONSC 1538. The foregoing provides only an overview. Readers are cautioned a......
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Table of Cases
...Ltd v Adams, [1992] OJ No 2148 (Gen Div) ..................................... 11, 143, 147, 564, 565, 598, 603 Allison v Noranda Inc, 2001 NBCA 67 ............................................................... 261 AM International Inc Employee Pension Plans (Trustee of), [1982] OJ No 1090......
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Table of Cases
...O.T.C. 783, 14 C.C.E.L. (3d) 31, [2001] O.J. No. 4266 (S.C.J.) ....................................... 328 Allison v. Noranda Inc. (2001), 239 N.B.R. (2d) 211, 9 C.C.E.L. (3d) 280, [2001] N.B.J. No. 241 (C.A.) .......................................................................... 40 All......
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Table of cases
...2148 (Gen. Div.) ..................................................... 10, 153, 158, 569, 570, 603, 608 Allison v. Noranda Inc. (2001), 239 N.B.R. (2d) 211, 28 C.C.P.B. 1, [2001] N.B.J. No. 241 (C.A.) ........................................................................ 277 AM Internatio......
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Table of Cases
...OJ No 2148 (Gen Div) ......................................................... 11, 149, 155, 577, 578, 610, 616 Allison v Noranda Inc, 2001 NBCA 67 .............................................................. 267 Alyea v Alyea, 2016 ONSC 4878 ....................................................