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CANADIAN HR LAW
Oct 11, 2012

Constructively dismissed Walmart employee gets $1.4 million

Woman alleges she was harassed and forced to quit, jury awards $1 million in punitive damages
    
By Stuart Rudner

Yesterday, a jury in Ontario ruled in favour of Meredith Boucher, a former Walmart employee in Windsor, Ont., who alleged she was "subject to profane and insulting mental abuse" from May to November 2009 from the store manager.

The alleged conduct included being called a "(expletive) idiot" and being made to count skids in front of others to prove she could count. 

There were also allegations she "was subject to sexual harassment and discrimination, intentional infliction of mental suffering, and — at the hands of an assistant manager who punched her in the arm two days in a row and was subsequently fired — assault."

The jury believed she was forced to resign, and this conduct constituted a constructive dismissal.  Details of the award are:

From Walmart:

•$200,000 for intentional infliction of mental suffering

•$1 million for punitive damages

•$10,000 for assault

From the manager personally:

•$100,000 for intentional infliction of mental suffering

•$150,000 for punitive damages.

The award of $1 million in punitive damages dwarfs previous awards in Canadian wrongful dismissal claims.

Readers may recall the Keays v. Honda Canada Inc. case in which Keays was awarded $500,000 in punitive damages. That case made headlines and sent shockwaves through the legal and business communities. However, that amount was reduced to $100,000 by the Court of Appeal and wiped out entirely by the Supreme Court of Canada.

Counsel for Walmart has indicated that he has recommended that his client file an appeal, calling the award "perverse". So, like the Honda case, the saga may continue.

Stuart Rudner is an HR Lawyer and a partner in the Labour & Employment Law Group of Miller Thomson LLP, a national law firm. He provides clients with strategic advice regarding all aspects of the employment relationship, and represents them before courts, mediators and tribunals. He is author of You’re Fired: Just Cause for Dismissal in Canada, published by Carswell. He can be reached at (416) 595-8672 or srudner@millerthomson.com. You can also follow him on Twitter @CanadianHRLaw and join his Canadian HR Law Group on LinkedIn.

    
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COMMENTS
What was the Judge Thinking?
Tuesday, October 23, 2012 3:03:00 PM by Stuart Rudner
Jeannie, it is important to remember that this was a decision by jury and not Judge.
Stuart
What was the Judge Thinking?
Tuesday, October 23, 2012 2:47:00 PM by JeannieM
Indeed Walmart and the offending manager need to pay damages. But by awarding such high amounts, the judge ensured that the case will be appealed and the awards will be reduced or removed. Particularly in the manager's case, it is unrealistic to expect a that this individual has the financial resources to come up with $250,000. That's probably about 5 years salary for a Walmart Manager.

This case has already dragged on for three years and will probably take another two to resolve. Meanwhile the wronged employee is still dealing with the emotional turmoil of the legal process. This is simply revictimizing the victim.
Attack on Workplace Bullying... finally!
Thursday, October 18, 2012 9:56:00 AM by wwendy
As someone who has provided HR services to organizations for years, I have been witness to countless examples of bullying and mental torture of employees in organization. In many cases, the organization is fully aware of the bullies and do not act to address the behaviour of these individuals. Maybe this award will wake employers up to the fact that these situations need to be resolved to protect the interests of the company.
Really, $1.4 million
Wednesday, October 17, 2012 1:48:00 PM
I agree with you Nancy, but $1.4 million really? I wouldn't mind a few months of verbal abuse to collect that.
Dare the Supreme Court Overturn This Decision?
Monday, October 15, 2012 9:51:00 PM by Nancy
The amount may be a little excessive, but if the Supreme
Court whittles it down to the usual nothing, what lesson
is ever learned by the employer? All for show, the lawyers
get paid, the judges get paid, the employee gets nothing.
And the abuse continues at the hands of unskilled, dubious Management and HR teams. The large corporate giants upper management are so far removed from the reality of
everyday life on the front lines. It is time for an award such as this to stand and hold the employer accountable for such actions that happen more often than not!!!
Did length of employment matter?
Friday, October 12, 2012 1:48:00 PM by Stuart Rudner
John, her length of service would be relevant for the calculation of wrongful dismissal damages. Since the jury found that she was constructively dismissed, a (small) part of the damages award would have been pay in lieu of notice of dismissal. But that amount would have been negligible in light of the other damages awarded.
Did length of employment matter?
Friday, October 12, 2012 10:58:00 AM
Was she only employed by Walmart for less than a year? Is length of employment any factor in a case like this?
Business can not regulate itself.
Friday, October 12, 2012 10:19:00 AM
Walmart is the number one example of why business needs checks and balances.
People who are in human resources should tell Walmart that they ARE NOT a good business model.
Court Case
Friday, October 12, 2012 9:17:00 AM by Francis
Important court case