Punitive damages for wrongful dismissal- Honda Canada vs. Keays

I don’t often write about employment law issues, but the Supreme Court released a signficant decision relating to the duty to accommodate at the end of last month.

Kevin Keays worked for Honda for a number of years, during which time he became disabled with chronic fatigue syndrome. He was on disability benefits until the benefits were terminated, at which point he returned to work through Honda’s Disability Program. As part of this program, Keays could take absenses from work provided he supplied a doctor’s note. At a certain point, Honda wanted Keays to see their own doctor as the doctors notes being supplied by Keays were, apparently, not specific enough. After refusing to meet with Honda’s doctor, Keays was terminated.

This case is signficant because although the Supreme Court upheld the damages award for wrongful dismissal, they did not uphold the damages award for punitive damages or aggravated damages (the trial judge had awarded punitive damages of $500,000.00 to Keays, while the Court of Appeal later reduced this amount to $100,000.00). The court stated that in order to receive punitive damages, the conduct of the employer must have been ”harsh, vindictive, reprehensible and malicious”. Most cases for wrongful dismissal are going to have a hard time meeting this standard. 

In deciding that Honda’s conduct was not bad enough to justify an award for punitive damages, the case is being seen as a victory for employers.