Chahal v. Khalsa Com. School, [2000] O.T.C. 656 (SupCt)

• Judge: Mandel, J.
• Court: Superior Court of Justice of Ontario (Canada)
• Case Date: September 27, 2000
• Jurisdiction: Ontario
• Citations: [2000] O.T.C. 656 (SupCt)

Chahal v. Khalsa Com. School, [2000] O.T.C. 656 (SupCt)

MLB headnote and full text

Temp. Cite: [2000] O.T.C. TBEd. JL.007

Ranjit Singh Chahal (plaintiff) v. Khalsa Community School, Sri Guru Singh, Sabha (Malton), Jagtaran Singh Sekhon, Sewa Singh Sandhu and Ripsodhak Singh Grewal (defendants)

(98-CV-150300)

Indexed As: Chahal v. Khalsa Community School et al.

Court of Ontario

Superior Court of Justice

Mandel, J.

June 30 and September 27, 2000.

Summary:

A Sikh Temple established a private school. The plaintiff sued the school, the Temple and certain individuals, alleging that he had been wrongfully dismissed as school principal and defamed. He sought damages according to an alleged contract and punitive damages.

The Ontario Superior Court held that the plaintiff was wrongfully dismissed. The court awarded the plaintiff $60,000 as provided for under the contract (pre-estimation of damages), a further $25,000 in punitive damages because of the defamation and humiliation of the plaintiff and the harsh and brutal conduct of the defendants, and $4,666.65 for unpaid wages and vacation pay. The court held that the Temple had assured the plaintiff that it would pay him if the school could not pay and that such assurance was enforceable. The court held that the individual defendants were not acting bona fide and that they were all personally liable. The defendants were jointly and severally liable for the damages.

Agency - Topic 1180

Authority of agent - Implied authority - General - From statement by principal to third party - See paragraph 95.

Company Law - Topic 4566

Officers and agents - Liability - General - For tortious acts - See paragraphs 110 to 123.

Contracts - Topic 1150

Formation of contract - Signing - Witnessing or attestation - See paragraphs 79 to 80.

Contracts - Topic 2504

Variation or alteration - General - Requirement of consideration - See paragraphs 72 to 78.

Contracts - Topic 7404

Interpretation - General principles - Ordinary meaning (Golden Rule) - General - See paragraphs 84 to 89.

Contracts - Topic 7952

Statute of Frauds - General - When applicable - See paragraph 102.

Contracts - Topic 9275

Unconscionable transactions relief - Persons entitled to relief or benefits - Persons not entitled - Experienced businessmen - See paragraphs 81 to 83.

Damage Awards - Topic 2014

Exemplary or punitive damages - Wrongful dismissal - See paragraph 136.

Damages - Topic 1326

Exemplary or punitive damages - Wrongful dismissal - See paragraphs 134 to 136.

Guarantee and Indemnity - Topic 122

The contract - Formation of contract - Implied from conduct - See paragraphs 100 to 109.

Guarantee and Indemnity - Topic 209

The contract - Memorandum required - Statute of Frauds - Circumstances not within statute - See paragraphs 100 to 109.

Interest - Topic 5104

Interest as damages (prejudgment interest) - Breach of contract - Employment contracts - See paragraphs 145 to 151.

Libel and Slander - Topic 4429

Damages - General damages - Measure of - Exemplary or punitive damages - When available - See paragraphs 124 to 126 and 134 to 136.

Master and Servant - Topic 1982

Remuneration - Vacation pay - Entitlement to - See paragraph 131.

Master and Servant - Topic 3679

Liability of master for acts of servant - Torts - General - Acts in course of employment - See paragraph 126.

Master and Servant - Topic 7712

Dismissal of employees - Damages for wrongful dismissal - Punitive or vindictive damages - See paragraphs 134 to 136.

Practice - Topic 6923

Costs - General principles - Power to award or fix costs - See paragraphs 152 to 166.

Torts - Topic 5089

Interference with economic relations - Conspiracy - Conspiracy to wrongfully dismiss employees - See paragraphs 110 to 123.

Cases Noticed:

Francis v. Canadian Imperial Bank of Commerce (1994), 75 O.A.C. 216; 7 C.C.E.L.(2d) 1 (C.A.), dist. [para. 73].

Williams v. Roffey & Nicholls (Contractors), [1991] 1 Q.B. 1 (C.A.), refd to. [para. 76].

Ficom S.A. v. Sociedad Cadex Ltd., [1980] 2 Lloyd's Rep. 118, refd to. [para. 76].

Sear v. Claridge (1881), L.R. 7 Q.B.D. 516 (C.A.), folld. [para. 80].

Davis v. Goodman (1880), 5 C.P.D. 128 (C.A.), refd to. [para. 80].

Syncrude Canada Ltd. et al. v. Hunter Engineering Co. and Allis-Chalmers Canada Ltd. et al. (1989), 92 N.R. 1; 57 D.L.R.(4th) 321 (S.C.C.), refd to. [para. 82].

Eli Lilly & Co. et al. v. Novopharm Ltd. et al., [1998] 2 S.C.R. 129; 227 N.R. 201, refd to. [para. 84].

Canadian Premier Holdings Ltd. et al. v. Winterthur Canada Financial Corp. et al. (2000), 132 O.A.C. 172 (C.A.), refd to. [para. 84].

Stevens v. Globe and Mail et al. (1996), 90 O.A.C. 361; 19 C.C.E.L.(2d) 153 (C.A.), dist. [para. 85].

Mattocks v. Smith & Stone (1982) Inc. (1990), 34 C.C.E.L. 273 (Ont. Gen. Div.), refd to. [para. 86].

Matthewson v. Aiton Power Ltd. (1985), 11 O.A.C. 76; 8 C.C.E.L. 312 (C.A.), refd to. [para. 88].

Canadian Laboratory Supplies Ltd. v. Englehard Industries of Canada Ltd. (1979), 27 N.R. 193; 97 D.L.R.(3d) 1 (S.C.C.), refd to. [para. 95].

Freeman & Lockyer (A Firm) v. Buckhurst Park Properties (Mangal) Ltd., [1964] 2 Q.B. 408 (C.A.), refd to. [para. 95].

Monachino v. Liberty Mutual Fire Insurance Co. et al. (2000), 131 O.A.C. 235; 47 O.R.(3d) 481 (C.A.), refd to. [para. 95].

Goldbold v. Puritan Laundry Co. (1917), 12 O.W.N. 343 (H.C.), refd to. [para. 98].

Williams v. Hammond (1906), 5 W.L.R. 41 (Man. C.A.), refd to. [para. 98].

Tracey v. Swansea Construction Co., [1965] 1 O.R. 203 (H.C.), refd to. [para. 98].

Sutton & Co. v. Grey, [1894] 1 Q.B. 285 (C.A.), refd to. [para. 102].

Canada Cement LaFarge Ltd. et al. v. British Columbia Lightweight Aggregate Ltd. et al., [1983] 1 S.C.R. 452; 47 N.R. 191; [1983] 6 W.W.R. 385; 145 D.L.R.(3d) 385; 21 B.L.R. 254; 24 C.C.L.T. 111; 72 C.P.R.(2d) 1, refd to. [para. 111].

Canadian Training & Development Group Inc. v. Air Canada (1986), 39 C.C.L.T. 72 (Ont. Div. Ct.), refd to. [para. 113].

Varner v. Morton (1919), 46 D.L.R. 597 (N.S.C.A.), refd to. [para. 115].

International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local 213 v. Therien (1960), 22 D.L.R.(2d) 1 (S.C.C.), refd to. [para. 116].

Truckers Garage Inc. v. Krell (1993), 68 O.A.C. 106; 3 C.C.E.L.(2d) 157 (C.A.), refd to. [para. 120].

Montreal Trust Co. of Canada et al. v. Scotia McLeod Inc. et al. (1995), 87 O.A.C. 129; 26 O.R.(3d) 481 (C.A.), refd to. [para. 120].

Normart Management Ltd. v. West Hill Redevelopment Co. et al. (1998), 113 O.A.C. 375; 37 O.R.(3d) 97 (C.A.), refd to. [para. 120].

ADGA Systems International Ltd. v. Valcom Ltd. et al. (1999), 117 O.A.C. 39; 43 O.R.(3d) 101 (C.A.), refd to. [para. 120].

Ribeiro v. Canadian Imperial Bank of Commerce et al. (1989), 67 O.R.(2d) 385 (H.C.), varied (1992), 44 C.C.E.L. 165 (Ont. C.A.), leave to appeal refused (1993), 157 N.R. 400; 65 O.A.C. 79 (S.C.C.), refd to. [para. 121].

Kepic v. Tecumseh Road Builders et al. (1987), 23 O.A.C. 72; 18 C.C.E.L. 218 (C.A.), refd to. [para. 127].

Toronto-Dominion Bank v. Wallace (1983), 41 O.R.(2d) 161 (C.A.), refd to. [para. 128].

Orke v. Quintette Coal Ltd. (1992), 39 C.C.E.L. 146 (B.C.S.C.), folld. [para. 131].

Scott v. Board of Education of School District No. 29 (Lillooet) (1991), 5 B.C.A.C. 254; 11 W.A.C. 254; 60 B.C.L.R.(2d) 273 (C.A.), refd to. [para. 131].

London Export Corp. v. Jubilee Coffee Roasting Co., [1958] 2 All E.R. 411 (C.A.), refd to. [para. 132].

Vorvis v. Insurance Corp. of British Columbia, [1989] 1 S.C.R. 1085; 94 N.R. 321; [1989] 4 W.W.R. 218; 58 D.L.R.(4th) 193; 36 B.C.L.R.(2d) 273; 90 C.L.L.C. 14,035; 25 C.C.E.L. 81, refd to. [para. 132].

Paragon Properties Ltd. v. Magna Investments Ltd. (1972), 24 D.L.R.(3d) 156 (Alta. C.A.), refd to. [para. 134].

Cassell & Co. v. Broome, [1972] 1 All E.R. 801 (H.L.), refd to. [para. 135].

Philp v. Expo 86 Corp. (1987), 19 B.C.L.R.(2d) 88 (C.A.), refd to. [para. 149].

Sweet (George C.) Agencies Ltd. v. Sklar-Peppler Furniture Corp. (1995), 140 N.S.R.(2d) 69; 399 A.P.R. 69; 10 C.C.E.L.(2d) 43 (C.A.), refd to. [para. 149].

Murano et al. v. Bank of Montreal et al. (1998), 111 O.A.C. 242; 41 O.R.(3d) 222 (C.A.), refd to. [para. 157].

Ligate v. Abick (1991), 5 O.R.(3d) 332 (Gen. Div.), refd to. [para. 158].

Sherman et al. v. Drabinsky et al. (1996), 90 O.A.C. 139 (C.A.), leave to appeal refused 68 A.C.W.S. 223 (S.C.C.), refd to. [para. 162].

Authors and Works Noticed:

American Law Institute, Restatement of the Law of Contracts, Second (1986), generally [para. 134].

Fridman, Gerald Henry Louis, The Law of Torts in Canada, vol. 2, p. 271 [para. 111].

Gatley, Libel and Slander (8th Ed. 1981), para. 143 [para. 124].

Malen, Robert D., To Assess or to Fix Costs: That is the Question (1998), 20 Adv. Q. 85, generally [para. 164].

Maxwell, Peter Benson, Interpretation of Statutes, pp. 232, 233 [para. 84].

Mole, Ellen E., Wrongful Dismissal Practice Manual, para. 9.20 [para. 75].

Counsel:

K. Taylor, for the plaintiffs;

J.B. Simpson and K.A. Krupat, for the defendants.

This action was heard by Mandel, J., of the Ontario Superior Court, on March 7-10, 13-14 and May 15-17, 2000, with written submissions as to costs received on September 14, 20 and 22, 2000. Mandel, J., delivered the following decisions on the merits and costs on June 30 and September 27, 2000, respectively.

Please note: The following judgment has not been edited.