Milwid v. IBM Canada Ltd.

Background:

• IBM Canada Ltd. appealed a summary judgment favoring Gregory Milwid in a wrongful dismissal claim.
• The appeal challenged:
  1. The extension of the reasonable notice period beyond 24 months.
  2. The award of damages for Restricted Stock Units (RSUs) that would have vested during the notice period.

Key Points:

1. Notice Period:

   • The motion judge awarded 26 months' notice, citing Milwid’s age, long service, specialized skills, and managerial position as exceptional circumstances.
   • The Court of Appeal upheld this decision, noting the precedent in Currie v. Nylene Canada Inc. and the non-transferability of Milwid’s skills.

2. COVID-19 Impact:

   • An additional month was added, totaling 27 months, due to the pandemic’s impact on the job market.
   • This decision was supported as the pandemic was deemed an exceptional circumstance.

3. Restricted Stock Units (RSUs):

   • The motion judge awarded damages for RSUs that would have vested, interpreting the termination clause in the Equity Award Agreement as ambiguous.
   • The Court of Appeal agreed, finding the clause did not clearly exclude common law rights, thus upholding the award.

Disposition:

• The appeal was dismissed.
• Costs of $20,000 were awarded to Milwid.

Conclusion:

• The Court affirmed the extended notice period and RSU damages, highlighting the impact of the pandemic and contractual ambiguities in favor of the respondent.