What is the test for an employee seeking equity in a company that is being restructured?
British Columbia, Canada
The following excerpt is from Burton v Marwest Utilities Services Ltd., 2019 BCSC 490 (CanLII):
Kosaka v. Chan, 2009 BCCA 467 bears some similarities to the case at bar. In that case, the plaintiff had an employment contract with the defendant. Upon learning that the defendant was planning on restructuring the company, the plaintiff began negotiations in the interests of securing equity in the company. The plaintiff continued to work for the company under the understanding that the company would eventually secure him equity. These negotiations fell through, and he sued for unjust enrichment. His claim was dismissed at trial.
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