Legal briefs

Good broker, bad decision; A little bad faith goes a long way

Good broker, bad decision

Calgary — RBC Dominion Securities was justified in firing a high-performing broker in Calgary who brought a prostitute to his office after hours and left her there alone following a dispute over payment. Jim Whitehouse, a vice-president who earned more than $450,000 in commission in his last year with the company, had been drinking heavily on a January night in 2004 when he decided to pick up a prostitute. The woman was left alone in the reception area, where she could have accessed confidential client and company data, after Whitehouse left the building. She left a voice mail message explaining what had happened on an employee’s phone, and showed up at the office the next day demanding payment. The court said Whitehouse’s conduct exhibited contempt for his employer, his co-workers and their reputation in the business community.

A little bad faith goes a long way

Vancouver — A professional engineer at Johnson Controls was awarded additional damages because the company terminated his employment without cause three days before he would have qualified for almost $14,000 in commission. The British Columbia Supreme Court said the company handled the termination correctly for the most part, but getting rid of Peter Hill right before the commission payment was bad faith. The employer, which paid the commission before the trial because it realized he was entitled to it regardless, was nevertheless punished by the court, which tacked additional time on to the reasonable notice period. Hill, who was with the company from July 2001 until March 2005, was awarded 12 months’ pay in lieu of notice.

To read the full story, login below.

Not a subscriber?

Start your subscription today!