Café La Foret Ltd. v. Cho

The employer appeals an award of damages against it for the wrongful dismissal of the respondent, who was found to have sexually harassed a subordinate employee. It says the judge erred in finding the employer did not have cause for dismissal and in making a global award for aggravated and punitive damages.

Held: Appeal allowed in part.

The employer has not established a material error in the judge’s reasons for concluding there was insufficient cause for termination. The judge’s finding that the employee was not dishonest prior to his termination was supported by the record. It was not an error to consider whether the sexual harassment alone justified termination, as the other alleged grounds for dismissal were not made out. Any errors in the judge’s contextual analysis as to whether there was sufficient cause were not material. Although the judge erred in making a global award for aggravated and punitive damages, as they are distinct remedies with different objects and distinct analyses, the $25,000 she awarded is warranted for aggravated damages alone. An award for punitive damages is not required.