Sylvester v. British Columbia, (1997) 212 N.R. 51 (SCC)

• Judge: McLachlin, Iacobucci and Major, JJ.
• Court: Supreme Court (Canada)
• Case Date: May 29, 1997
• Jurisdiction: Canada (Federal)
• Citations: (1997), 212 N.R. 51 (SCC);91 BCAC 124;[1997] 6 WWR 625;[1997] CarswellBC 1024;29 CCEL (2d) 1;[1997] 2 SCR 315;34 BCLR (3d) 1;JE 97-1246;AZ-97111064;146 DLR (4th) 207;[1997] SCJ No 58 (QL);1997 CanLII 353 (SCC);212 NR 51

Sylvester v. B.C. (1997), 212 N.R. 51 (SCC)

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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Her Majesty The Queen in Right of the Province of British Columbia (appellant) v. Ossie Sylvester (respondent)

(24891)

Indexed As: Sylvester v. British Columbia

Supreme Court of Canada

Lamer, C.J.C., La Forest, L'Heureux-Dubé,

Sopinka, Gonthier, Cory,

McLachlin, Iacobucci and

Major, JJ.

May 29, 1997.

Summary:

A disabled provincial government employee dismissed for redundancy sued for damages for wrongful dismissal. The employee was receiving disability benefits under a plan contributed to solely by the employer. Following a summary trial under rule 18A, the trial judge found the employee dismissed without cause and fixed the period of reasonable notice at 15 months. The trial judge deducted from the damage award the disability benefits received during the notice period. The employee appealed.

The British Columbia Court of Appeal, in a judgment reported 60 B.C.A.C. 97; 99 W.A.C. 97, allowed the appeal. The court increased the period of reasonable notice to 20 months and held that the disability bene­fits received during the notice period were not to be deducted from the damage award. The employer appealed. The sole issue was the deductibility of the disability benefits.

The Supreme Court of Canada allowed the appeal. The contractual disability benefits received during the notice period, funded solely by the employer's contributions, were to be deducted from damages where that was the intention of the parties to the em­ployment contract.

Master and Servant - Topic 7710.1

Dismissal of employees - Damages for wrongful dismissal - Deductions for dis­ability benefits received by employee - At issue was whether contractual disability benefits received by a dismissed employee during the notice period, from a plan funded solely by the employer, must be deducted from damages - The Supreme Court of Canada stated it was the intention of the parties to the employment contract that an employee receiving disability benefits not receive both the benefits and damages for wrongful dismissal - Dis­ability benefits were intended to be a substitute for regular salary - Simul­taneous payments of disability benefits and damages for wrongful dismissal was in­consistent with the terms of the employ­ment contract - The court stated that dis­ability benefits would not be deductible if that result was expressly agreed to or if that intention was inferred - The court declined to rule on the deductibility of disability benefits where an employee contributed to the disability plan (i.e., private insurance plan where employee has contributed).

Cases Noticed:

Bursey v. Acadia Motors Ltd. (1980), 35 N.B.R.(2d) 587; 88 A.P.R. 587 (C.A.), refd to. [para. 10].

Datardina v. Royal Trust Corp. of Canada (1995), 60 B.C.A.C. 109; 99 W.A.C. 109; 6 B.C.L.R.(3d) 1 (C.A.), refd to. [para. 10].

McKay v. Camco Inc. (1986), 11 O.A.C. 356; 53 O.R.(2d) 257 (C.A.), refd to. [para. 10].

Jorgenson v. Jack Cewe Ltd., [1980] 1 S.C.R. 812; 32 N.R. 1, dist. [para. 11].

Peck v. Levesque Plywood Ltd. (1979), 27 O.R.(2d) 108 (C.A.), dist. [para. 11].

Salmi v. Greyfriar Developments Ltd., [1985] 4 W.W.R. 463; 58 A.R. 364 (C.A.), dist. [para. 11].

White v. Woolworth (F.W.) Co. (1996), 139 Nfld. & P.E.I.R. 324; 433 A.P.R. 324; 22 C.C.E.L.(2d) 110 (Nfld. C.A.), dist. [para. 11].

Industries de Caoutchouc Mondo (Canada) Ltée v. Leblanc (1987), 17 C.C.E.L. 219 (Que. C.A.), dist. [para. 11].

Counsel:

Timothy P. Leadem, for the appellant;

Brian A. Crane, Q.C., and Iqbal Sara, for the respondent.

Solicitors of Record:

Attorney General of British Columbia, Vancouver, British Columbia, for the appellant;

Iqbal Sara, Vancouver, British Columbia, for the respondent.

This appeal was heard on February 13, 1997, before Lamer, C.J.C., La Forest, L'Heureux-Dubé, Sopinka, Gonthier, Cory, McLachlin, Iacobucci and Major, JJ., of the Supreme Court of Canada.

On May 29, 1997, Major, J., delivered the following judgment in both official lan­guages for the Supreme Court of Canada.