Killorn v. Healthvision Corp., (1997) 156 N.S.R.(2d) 1 (CA)

• Judge: Hallett, Freeman and Roscoe, JJ.A.
• Court: Court of Appeal of Nova Scotia (Canada)
• Case Date: January 10, 1997
• Jurisdiction: Nova Scotia
• Citations: (1997), 156 N.S.R.(2d) 1 (CA)

Killorn v. Healthvision Corp. (1997), 156 N.S.R.(2d) 1 (CA);

    461 A.P.R. 1

MLB headnote and full text

Healthvision Corporation, a body corporate formerly known as HCS Healthcare Systems Inc., a body corporate (appellant) v. J. Colleen Killorn (respondent)

(C.A. No. 125259)

Indexed As: Killorn v. Healthvision Corp.

Nova Scotia Court of Appeal

Hallett, Freeman and Roscoe, JJ.A.

January 10, 1997.

Summary:

The plaintiff was employed by the defen­dant as an account manager from November 9, 1989, until July 12, 1993, when she was dismissed without cause and offered four months' pay as severance. The plaintiff rejected the offer and sued for damages for wrongful dismissal. The plaintiff claimed damages equal to a reasonable notice period of 24 months, general damages for mental distress and punitive damages for the manner in which she was terminated. It was a jury trial.

The Nova Scotia Supreme Court allowed the action in part. The jury fixed the period of reasonable notice at six months, rejected the punitive damages claim, and awarded $60,000 general damages for mental distress. The defendant appealed the mental distress damage award, claiming that the trial judge erred in leaving the issue with the jury. Alternatively, the trial judge misdirected the jury by having them focus on foreseeability and, in any event, the $60,000 award was inordinately high.

The Nova Scotia Court of Appeal, Free­man, J.A., dissenting, allowed the appeal and set aside the damage award for mental dis­tress. Absent facts disclosing a separate actionable wrong (e.g., deceit or defama­tion), damages were not available for mental distress. The trial judge erred in leaving the issue with the jury. Alternatively, the trial judge failed to instruct the jury in accord with the decision of the Supreme Court of Canada in Vorvis v. Insurance Corp. of British Columbia. Further, the damage award was inordinately high. Damages should not have exceeded $15,000.

Damages - Topic 6751

Contracts - Employment contract - Breach by employer - Emotional upset - [See Master and Servant - Topic 7707 ].

Master and Servant - Topic 7707

Dismissal of employees - Damages for wrongful dismissal - Mental distress - A jury awarded an employee $60,000 dam­ages for mental distress - The Nova Scotia Court of Appeal set aside the award - Damages for wrongful dismissal were to compensate a dismissed employee for lack of reasonable notice - Damages for mental distress were available only where there was an independent cause of action apart from the contractual breach (e.g., deceit or defamation) - There were no facts sup­porting an independent actionable wrong - The dismissal was not public - It was done personally - The employee was offered four months' severance pay - There were no allegations of misconduct and no deceit or defamation - The sud­denness and callousness of a dismissal were relevant to damages for reasonable notice, but not mental distress - Inconsid­erate conduct in terminating an employee without warning or reasons did not consti­tute a separate actionable wrong - If dam­ages were available, the trial judge misdi­rected the jury by focusing on foreseeability of mental distress rather than following Supreme Court of Canada in­structions in Vorvis v. Insurance Corp. of B.C. - Further, an award of $60,000 was inordinately high and should not have exceeded $15,000 - See paragraphs 130 to 209.

Master and Servant - Topic 8063

Dismissal without cause - Damages - Mental distress - [See Master and Ser­vant - Topic 7707 ].

Cases Noticed:

Vorvis v. Insurance Corp. of British Col­umbia, [1989] 1 S.C.R. 1085; 94 N.R. 321; 58 D.L.R.(4th) 193; [1989] 4 W.W.R. 218; 36 B.C.L.R.(2d) 273; 90 C.L.L.C. 14,035; 25 C.C.E.L. 81, refd to. [para. 23].

Addis v. Gramophone Co., [1909] A.C. 488 (H.L.), refd to. [para. 23].

Pilon v. Peugeot Canada Ltd. (1980), 29 O.R.(2d) 711 (H.C.), refd to. [para. 25].

Peso Silver Mines Ltd. v. Cropper, [1966] S.C.R. 673, refd to. [para. 27].

Harvey Foods Ltd. v. Reid (1971), 3 N.B.R.(2d) 444 (C.A.), refd to. [para. 27].

Ribeiro v. Canadian Imperial Bank of Commerce (1989), 24 C.C.E.L. 225 (Ont. H.C.), varied (1992), 44 C.C.E.L. 165 (Ont. C.A.), refd to. [para. 34].

Brown v. Waterloo Regional Board of Commissioners of Police (1983), 43 O.R.(2d) 113; 2 C.C.E.L. 7 (C.A.), refd to. [para. 36].

Bohemier v. Storwal International Inc. (1982), 40 O.R.(2d) 264 (H.C.), refd to. [para. 37].

Hadley v. Baxendale (1854), 9 Ex. 341; 156 E.R. 145, refd to. [para. 38].

Donoghue v. Stevenson, [1932] A.C. 562 (H.L.), refd to. [para. 40].

Anns v. Merton London Borough Council, [1977] 2 All E.R. 492 (H.L.), refd to. [para. 41].

Canadian National Railway Co. et al. v. Norsk Pacific Steamship Co. and Tug Jervis Crown et al., [1992] 1 S.C.R. 1021; 137 N.R. 241; 91 D.L.R.(4th) 289, refd to. [para. 42].

Fletcher v. Manitoba Public Insurance Co., [1990] 3 S.C.R. 191; 116 N.R. 1; 71 Man.R.(2d) 81; 44 O.A.C. 81, refd to. [para. 43].

Nova Mink Ltd. v. Trans-Canada Airlines, [1951] 2 D.L.R. 241 (N.S.C.A.), refd to. [para. 43].

Hall v. Hebert, [1993] 2 S.C.R. 159; 152 N.R. 321; 26 B.C.A.C. 161; 44 W.A.C. 161; 101 D.L.R.(4th) 129, refd to. [para. 49].

Dixon v. British Columbia Transit (1995), 13 C.C.E.L.(2d) 272 (B.C.S.C.), refd to. [para. 52].

Russell v. Nova Scotia Power Inc. (1996), 150 N.S.R.(2d) 271; 436 A.P.R. 271 (S.C.), refd to. [para. 53].

Backman v. Hyundai Auto Canada Inc. (1990), 100 N.S.R.(2d) 24; 272 A.P.R. 24 (T.D.), refd to. [para. 54].

Fulton v. Fort Erie (Town) (1982), 40 O.R.(2d) 235 (H.C.), refd to. [para. 57].

MacDougall v. Midland Doherty Ltd. (1984), 7 C.C.E.L. 28 (Ont. H.C.), refd to. [para. 57].

Stadler v. National Bank of Canada (1984), 23 A.C.W.S.(2d) 483 (Ont. H.C.), refd to. [para. 57].

Saraga v. Wellington (County) Board of Education (1995), 11 C.C.E.L.(2d) 317 (Ont. Gen. Div.), refd to. [para. 57].

McOnie v. River Pub Ltd. and Rofhie (1987), 79 N.S.R.(2d) 379; 196 A.P.R. 379 (T.D.), refd to. [para. 79].

Woelk v. Halvorson, [1980] 2 S.C.R. 430; 33 N.R. 232; 24 A.R. 620; [1981] 1 W.W.R. 289; 14 C.C.L.T. 181; 114 D.L.R.(3d) 385, refd to. [para. 82].

Wallace v. United Grain Growers Ltd., [1995] 9 W.W.R. 153; 102 Man.R.(2d) 161; 93 W.A.C. 161 (C.A.), refd to. [para. 134].

Pulsifer v. GTE Sylvania Canada Ltd. (1983), 56 N.S.R.(2d) 424; 117 A.P.R. 424 (C.A.), refd to. [para. 152].

Sweet v. Canadian Indemnity Co. (1980), 43 N.S.R.(2d) 55; 81 A.P.R. 55 (T.D.), refd to. [para. 165].

Wilcox v. Philips Electronics Ltd. (1984), 64 N.S.R.(2d) 352; 143 A.P.R. 352 (T.D.), refd to. [para. 165].

Lynch v. Mack (J.D.) Ltd. (1984), 65 N.S.R.(2d) 417; 147 A.P.R. 417 (T.D.), refd to. [para. 165].

Bell v. Izaak Walton Killam Hospital for Children (1986), 74 N.S.R.(2d) 309; 180 A.P.R. 309 (T.D.), refd to. [para. 165].

Cardenas v. Clock Tower Hotel Limited Part­nership (1993), 120 N.S.R.(2d) 49; 332 A.P.R. 49 (S.C.), refd to. [para. 165].

Monk v. Coca-Cola Bottling Ltd. (1996), 150 N.S.R.(2d) 192; 436 A.P.R. 192 (S.C.), refd to. [para. 165].

Damery v. Matchless Inc. (1996), 151 N.S.R.(2d) 321; 440 A.P.R. 321 (S.C.), refd to. [para. 165].

McNair and Guy v. Bremner (J.D.) & Son Ltd. (1983), 58 N.S.R.(2d) 222; 123 A.P.R. 222 (T.D.), refd to. [para. 166].

Moran v. Atlantic Co-operative Publishers (1988), 88 N.S.R.(2d) 117; 225 A.P.R. 117 (T.D.), refd to. [para. 166].

Legorburu v. Det Norske Veritas (1990), 97 N.S.R.(2d) 250; 258 A.P.R. 250 (T.D.), refd to. [para. 166].

Pilato v. Hamilton Place Convention Centre Inc. (1984), 3 C.C.E.L. 241; 45 O.R.(2d) 652 (H.C.), refd to. [para. 171].

Young v. Huntsville District Memorial Hospital (1984), 5 C.C.E.L. 113 (Ont. H.C.), refd to. [para. 172].

Hughes v. Gemini Food Corp. (1992), 45 C.C.E.L. 113 (Ont. Gen. Div.), refd to. [para. 179].

Bliss v. South East Thames Regional Health Authority, [1987] 1 C.R. 700 (C.A.), refd to. [para. 203].

Hayes v. Dodd (James & Charles)(a firm), [1990] 2 All E.R. 815 (C.A.), refd to. [para. 203].

Authors and Works Noticed:

Linden, Allen M., and Klar, Lewis N., Canadian Tort Law (10th Ed. 1994), generally [para. 44].

Wright, Cecil A., Introduction to Cases on the Law of Torts, generally [para. 44].

Counsel:

William L. Ryan, Q.C., and Nancy Rubin, for the appellant;

Raymond S. Riddell, for the respondent.

This appeal was heard on September 10, 1996, before Hallett, Freeman and Roscoe, JJ.A., of the Nova Scotia Court of Appeal.

On January 10, 1997, the judgment of the Court of Appeal was delivered and the following opinions were filed:

Freeman, J.A., dissenting - see para­graphs 1 to 84;

Hallett, J.A. (Roscoe, J.A., concurring) - see paragraphs 85 to 211.