Given the significant differences in the purposes, process and stakes involved in the two proceedings, the Court found that it would be unreasonable to deprive the employer of the opportunity to take advantage of the enhanced procedural safeguards available in the wrongful dismissal action and to properly makes its defence.
The plaintiff Director of Manufacturing,
Read filed a complaint with the ESB that he was terminated without cause and seeking compensation for length of service. Based on limited evidence, the ESB found that Read was terminated without cause and was entitled to four weeks' salary.
In October of 2020, Read filed a notice of civil claim seeking damages for wrongful dismissal, forcing the
The question was whether the Court should exercise its discretion to apply issue estoppel since it would be unfair to use the results of the ESB process to preclude the defence of just cause in the wrongful dismissal proceedings. The Court concluded it would be unfair to use the results of the ESB process.
The Court's reasoning turned primarily on the difference in purposes, process and stakes in the two proceedings. Given that the wrongful dismissal claim was potentially worth over 15 times more (
The Court also noted that the purpose of ESB proceedings (i.e. to provide efficient resolution of disputes and ensure basic standards of compensation) may be interfered with if ESB findings were used in civil actions where liability is significantly larger. It was also relevant that the Employment Standards Act does not give exclusive jurisdiction to the ESB.
Key Takeaway for Employers
An employee receiving a favourable determination on an employment standards complaint does not guarantee that it will be successfully relied upon at a summary trial of a civil action. In other words, employers may not necessarily be bound to the results of a employment standards complaint decision.
Applying issue estoppel in situations where differences in purposes, process and stakes are significant may cause an injustice and distort the purpose of the administrative tribunal or board.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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