Executive served for almost 20 years before being terminated
Ontario’s Superior Court of Justice recently dealt with the claim of a company’s former vice president, who alleged that he was wrongfully dismissed without notice.
Martin Koshman was summarily dismissed from his role at Controlex Corporation on September 11, 2020, via a couriered letter with no explanation.
Despite the absence of a written employment contract or a waiver of common law notice, the employer did not assert cause for dismissal, thus entitling Koshman to damages.
A veteran employee
Koshman, aged 69 at the time of termination, had served Controlex Corporation as Vice President for 18 and a half years, overseeing significant operational and property management responsibilities.
His dismissal abruptly ended a successful career trajectory marked by substantial contributions to the corporation's growth.
Informal discussions with the late founder, Peter Dent, suggested Koshman's intended retirement at age 75, indicating a positive working relationship with the organisation.
Following Dent’s unexpected demise, Susan Dent, previously uninvolved in the business, assumed control of the employer’s affairs and terminated Koshman without prior discussion.
Mrs. Dent’s conduct, including limiting Koshman’s authority and making defamatory statements, exacerbated the hostile environment leading to his dismissal.
During the interim period, Mrs. Dent allegedly disparaged Koshman to clients, suggesting his involvement in criminal activities, further tarnishing his reputation.
Notably, the employer failed to compensate Koshman for his accrued vacation entitlements upon termination, further worsening the unfair treatment.
Despite diligent efforts to secure comparable employment post-dismissal, Koshman remained unemployed, highlighting the adverse impact of the termination on his career.
Damages for wrongful dismissal
The court considered Koshman’s extensive tenure, coupled with the obstruction of relocation opportunities and defamatory accusations hurled against him by the employer. It said that such factors warrant a common law notice period of 24 months, supported by legal precedent.
The case involved wrongful dismissal proceedings that proceeded in default due to the absence of the employer, Controlex Corporation, at the commencement of trial on December 4, 2023.
According to records, despite multiple previous court orders mandating the employer’s participation, they failed to appear.
The court then proceeded to rule in Koshman’s favour, calculating damages for the notice period, totaling $471,461.68, which reflected his lost compensation over 24 months, adjusted for benefits and other allowances.
Additionally, aggravated damages, justified by the manner of dismissal and the employer’s bad faith conduct, amount to $50,000.
Given the reprehensible conduct of the employer, the court also awarded punitive damages of $50,000 to serve the objectives of retribution, deterrence, and denunciation.
Thus, in total, the court awarded damages, including compensatory, aggravated, and punitive damages, amounting to $571,461.68, plus prejudgment interest, in favour of Mr. Koshman.
The court further said that Koshman’s reasonable offer to settle and the employer’s lack of response necessitated the award of costs to him, totaling an additional $192,112.19, inclusive of disbursements.