Can a plaintiff claim aggravated damages for mental distress as a result of the denial of pay in lieu of notice?

British Columbia, Canada


The following excerpt is from Deildal v. Tod Mountain Development Ltd., 1997 CanLII 4076 (BC CA):

Hood J. then referred to Vorvis v. Insurance Corporation of British Columbia (1989), 1989 CanLII 93 (SCC), 58 D.L.R. (4th) 193 (S.C.C.), in which McIntyre J. for the majority concluded that aggravated damages for mental distress may sometimes be awarded in breach of contract cases, “particularly where the acts complained of were also independently actionable”. The learned trial judge distinguished between aggravated damages and damages for breach of contract. In the latter, he said, it must be “within the parties’ contemplation that if the employee did not receive reasonable notice of his termination he would probably suffer mental distress”. Highlighting the distinction between mental distress suffered as a result of such lack of notice (a contractual breach) and that suffered as a result of sudden termination (lawful conduct), the judge below then found as a fact that any distress Deildal suffered as a direct and immediate result of the termination itself flowed from its sudden and unexpected nature, rather than the denial of pay in lieu of notice, so was not compensable.

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