Krmpotic v. Thunder Bay Electronics Limited

Firms involved

Switzer Litigation, Buset LLP
Drago Krmpotic
Law Firm
Switzer Litigation
Lawyer(s)

Michael R. Switzer

Thunder Bay Electronics Limited
Law Firm
Buset LLP
Lawyer(s)

Derek Zulianello

Hill Street Financial Services Inc.
Law Firm
Buset LLP
Lawyer(s)

Derek Zulianello

Background

  • Employment: Krmpotic worked for TBEL and Hill Street for nearly 30 years, ending his employment as a Building Maintenance Supervisor.
  • Termination: Terminated without notice on June 13, 2016, after returning from back surgery.
  • Claims: Sued for wrongful dismissal, seeking damages for mental distress and aggravated/moral damages, capped at $100,000.

Trial Court Findings

  • Notice Period: Awarded 24 months minus 16 months’ salary already paid.
  • Mental Distress: Denied due to insufficient medical evidence.
  • Aggravated Damages: $50,000 awarded for bad faith conduct.
  • Liability: TBEL and Hill Street held jointly and severally liable.

Appeal Issues

  1. Mitigation: Alleged error in finding Krmpotic unable to mitigate due to physical incapacity.
  2. Aggravated Damages: Alleged error in awarding damages without a diagnosable psychological condition.
  3. Joint and Several Liability: Alleged error in holding both appellants liable.

Court of Appeal Decision

  • Mitigation: Upheld; Krmpotic was unable to perform physical work due to his condition.
  • Aggravated Damages: Upheld; bad faith conduct caused significant distress beyond normal dismissal hurt.
  • Liability: Confirmed joint and several liability; both entities employed Krmpotic throughout his tenure.

Disposition

  • Appeal: Dismissed with $12,000 costs awarded to the respondent.

Total Monetary Award/Costs/Damages

  1. Damages for Remaining Notice Period: $48,576 for the remaining 8 months of notice.
  2. Aggravated Damages: $50,000 for the manner of dismissal.
  3. Costs: $12,000 awarded to the respondent for the appeal.

Total Monetary Award

  • Total: $110,576 (including damages and costs).
Court of Appeal for Ontario
C70976
Labour & Employment Law
$ 110,576
Plaintiff