A Vancouver company has been ordered to pay a 75-year-old former employee $3.97 million in severance pay and damages.
B.C. Supreme Court Justice Catherine Murray’s Sept. 15 decision released Oct. 18 ordered Western Magnesium Corporation to pay James Sever $2.74 million alone in severance pay.
Sever had sought damages arising from what he alleges is the termination of his employment agreement with the company, including non‑payment of salary, reimbursement of expenses, severance pay, and indemnification for legal fees pursuant to directors' and officers' insurance.
“There is no question that the plaintiff is entitled to remuneration under the contract for wages and expenses, including indemnification for legal fees pursuant to the insurance, regardless of how his employment ended,” Murray wrote.
“This is a straightforward breach of contract case,” she said.
Murray said the facts were not complex nor were they disputed. Those, she said are:
- the parties agree that the company retained Sever pursuant to an executive employment agreement;
- the parties agree that the agreement was valid and enforceable.
- the terms of the agreement were clear and unambiguous. The defendants do not dispute the terms of the agreement, including the termination provision; and,
- the plaintiff's entitlement to compensation was further identified in the defendant's own evidence and documents, including minutes and resolutions of its board of directors' meetings.
“There is no issue that the contract was ended by one of the parties,” Murray said. “Having considered all of the evidence, the only rational conclusion is that the plaintiff was terminated by the defendant.”
“I am satisfied that the company, through its actions, constructively dismissed the plaintiff,” she said.
Murray also ordered to company to deliver to Sever two per cent of the total number of company common shares or 5,289,103 shares, and to deliver options for rights to purchase 300,000 company common shares.
In a statement to Glacier Media, Western Magnesium said it takes all court matters seriously and adheres to all its legal obligations.
"Unfortunately, the order of Madam Justice Murray was issued following a hearing held in the absence of Western Magnesium or its legal counsel. As a result, the court did not hear from Western Magnesium nor consider the totality of the evidence," the statement said.
"Western Magnesium intends to apply to set aside the order of Justice Murray and enable Western Magnesium to present its case. Once the full facts and evidence are presented to the court, we believe that the judgment will be overturned and trust that the court will be satisfied that Western Magnesium complied with all its legal obligations," the company stated.
Editor's note: This story was updated Oct. 19 with a statement from Western Magnesium.
