Norrad v. LaHave Equipment Ltd., (1995) 169 N.B.R.(2d) 19 (TD)

• Judge: Angers, J.
• Court: Court of Queen's Bench of New Brunswick (Canada)
• Case Date: November 02, 1995
• Jurisdiction: New Brunswick
• Citations: (1995), 169 N.B.R.(2d) 19 (TD)

Norrad v. LaHave Equipment Ltd. (1995), 169 N.B.R.(2d) 19 (TD);

    169 R.N.-B.(2e) 19; 434 A.P.R. 19

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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Richard W. (Dick) Norrad (plaintiff) v. LaHave Equipment Limited (defendant)

(F/C/720/92)

Indexed As: Norrad v. LaHave Equipment Ltd.

New Brunswick Court of Queen's Bench

Trial Division

Judicial District of Fredericton

Angers, J.

November 2, 1995.

Summary:

A branch manager sued his employer for breach of an employment contract. The employer counterclaimed for breach of the fiduciary duty related to the contract.

The New Brunswick Court of Queen's Bench, Trial Division, allowed the action and dismissed the counterclaim.

Master and Servant - Topic 1881

Remuneration - Severance pay - General - A 57 year old manager, who had been employed with the company for 34.5 years, knew that his division of the company was for sale - He entered into negotiations to purchase the company - While preparing for the purchase, he established his own company - No offer to purchase was made - The division was sold to a third party - The company terminated the manager's employment - His base salary was $48,000 - Had a car allowance - With commissions his salary fluctuated from $52,750 to $129,833 - Upon termination he went to work for his company receiving $36,000 plus a car allowance - The New Brunswick Court of Queen's Bench, Trial Division, concluded that the manager was entitled to a severance package of $50,000 plus company start up costs of $10,643.

Master and Servant - Topic 1881

Remuneration - Severance pay - General - The New Brunswick Court of Queen's Bench, Trial Division, stated that fore­warning of termination was a factor to be considered in determining whether a sev­erance package was within the proper range - See paragraph 15.

Master and Servant - Topic 2602

Duties of master - General - Fiduciary duty - An employee knew that the divi­sion of the company under which he worked was for sale - He entered into negotiations to purchase the division - To retain the business and financial backing of a client, he negotiated with the client and provided it with financial information respecting the company without the com­pany's knowledge - The division was sold to a third party - The company terminated the employee's employment - The em­ployee sued for breach of the employ­ment contract - The company counter­claimed for breach of the fiduciary duty related to the contract - The New Bruns­wick Court of Queen's Bench, Trial Divi­sion, con­cluded that although the employee's actions were inappropriate they did not amount to a breach of trust - See paragraph 12.

Master and Servant - Topic 7663

Dismissal of employees - With cause - Notice of dismissal - What constitutes - A corporate reorganization resulted in the sale of the division of the company under which Norrad, an employee of 34.5 years, was employed - The company gave Norrad four weeks notice that his employ­ment would be terminated - During the notice period, Norrad was expected to report to work to complete the odds and ends of the sale - The New Brunswick Court of Queen's Bench, Trial Division, concluded that the four weeks did not constitute notice - See paragraph 7.

Cases Noticed:

Johnson v. Moncton Chrysler Dodge (1980) Ltd. (1991), 114 N.B.R.(2d) 192; 289 A.P.R. 192 (C.A.), dist. [para. 14].

Gregory v. New Brunswick (1989), 97 N.B.R.(2d) 144; 245 A.P.R. 144 (T.D.), dist. [para. 14].

Dey v. Valley Forest Products Ltd. (1995), 162 N.B.R.(2d) 207; 415 A.P.R. 207 (C.A.), dist. [para. 14].

Ahmad v. Procter & Gamble Inc. (1991), 44 O.A.C. 338; 34 C.C.E.L. 1 (C.A.), refd to. [para. 15].

Counsel:

George P.L. Filliter, for the plaintiff;

Peter McLellan, Q.C., for the defendant.

This action was heard on October 31 and November 1 and 2, 1995, before Angers, J., of the New Brunswick Court of Queen's Bench, Trial Division, Judicial District of Fredericton, who delivered the following decision orally on November 2, 1995.