What is the test for awarding bad faith, moral and/or punitive damages?
Ontario, Canada
The following excerpt is from Yee v Hudson’s Bay Company, 2021 ONSC 387 (CanLII):
Counsel for HBC relied on the decision of Groves v. UTS Consultants Inc., 2019 ONSC 5605 (at paragraphs 112 to 117) where the factors to consider in determining whether to award bad faith, moral and/or punitive damages were summarized to include: a) moral damages are not for the normal distress and hurt feelings of termination; b) moral damages for psychological injury go beyond hurt feelings which are intrinsic to a standard termination process; c) while medical evidence is not necessary, some external evidence of mental distress is typically required; and d) the grounds for moral damages are assessed on a case by case basis and conduct that is untruthful or misleading can qualify.
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