What is the effect of long-term disability benefits when a plaintiff is dismissed on the grounds that the employer is having economic difficulties?
British Columbia, Canada
The following excerpt is from Wightman Estate v. 2774046 Canada Inc. et al, 2005 BCSC 1393 (CanLII):
In MacLellan v. H.B. Contracting Ltd., the plaintiff, a long-term employee, was dismissed on the ground that the employer was having economic difficulties. At the time of dismissal, the plaintiff was disabled from working by an ankle injury sustained on the job, and had been absent from work for several months. The plaintiff was receiving long-term disability benefits at the time of dismissal, and continued receiving them up to the time of trial, about four years later. The disability insurer had declared the plaintiff's disability to be permanent, about two years post-dismissal. At trial, the plaintiff testified that he believed he was permanently disabled and would never be able to return to work.
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