Can a partner claim damages for bad faith in the manner of dismissal?
Ontario, Canada
The following excerpt is from Tim Ludwig Professional Corporation v. BDO Canada LLP, 2017 ONCA 292 (CanLII):
Keays holds that, because employers have an implied contractual obligation of good faith in the manner of dismissal, damages for bad faith in the manner of dismissal are within the contemplation of the parties when they enter into the contract. Given the duty of utmost good faith owed between partners, confirmed in Rochwerg, the reasoning in Keays should apply in the partnerships context: damages flowing from bad faith in the manner of a partner’s expulsion are within the reasonable contemplation of the parties when they enter into the partnership agreement. Such damages can be awarded on the Hadley v. Baxendale principle.
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