$70,555.05 Awarded to Cover Legal Costs After Hudson’s Bay Company Concealed Critical Employment Contract
Hudson’s Bay Company’s wrongful dismissal of a long-serving employee has resulted in the company being ordered to pay $70,555.05 in legal fees, on top of $255,576.25 in wrongful dismissal damages already awarded. In Yee v. Hudson’s Bay Company, the Ontario Superior Court found that HBC had concealed a critical employment contract that would have resolved the dispute before it ever reached trial. Employment lawyers Daniel Lublin and Simone Ostrowski of Whitten & Lublin represented plaintiff Melvin Yee throughout both proceedings, first securing 16 months of salary, benefits, pension contributions, and unpaid bonus, and then returning to court to hold HBC accountable for the unnecessary litigation its own conduct had created.
TL;DR:
Hudson’s Bay Company was ordered to pay $70,555.05 in legal fees after the Ontario Superior Court found HBC had withheld a critical 2018 employment contract until two months before trial, unnecessarily prolonging litigation that could have been avoided entirely. Employment lawyers Daniel Lublin and Simone Ostrowski of Whitten & Lublin successfully argued that HBC’s conduct warranted a higher than standard costs award.
Background
Mr. Yee was terminated from his role at HBC on August 28, 2019. HBC initially relied on an outdated 2015 contract to justify the severance package. However, in October 2020, just two months before trial, HBC quietly disclosed a more recent employment contract from April 2018, which superseded the previous terms and meant that Mr. Yee was entitled to significantly more severance. The production of this document prompted changes to both parties’ claims, prompting Mr. Yee to add a claim for bad faith damages due to the document’s late disclosure.
Case Details
The central issue in this case was HBC’s failure to produce a crucial 2018 employment document until shortly before trial, despite its relevance to the severance terms. This omission led to significant adjustments in both parties’ arguments. Had HBC produced the proper 2018 document earlier, it would have been clear that Mr. Yee was entitled to more severance and the whole lawsuit and trial could have been avoided. Consequently, Mr. Lublin and Ms. Ostrowski argued that HBC’s conduct justified higher-than-normal costs to Mr. Yee to help cover the cost of his legal fees.
- HBC’s Position: HBC argued that costs of the legal fees should be shared, citing Mr. Yee’s mixed success at trial, as he was unsuccessful in his bad faith damages claim. HBC also made multiple settlement offers prior to trial, although none were as favourable as the court’s final decision.
- Mr. Yee’s Position: Mr. Lublin & Ms. Ostrowski argued that HBC should fully or substantially pay Mr. Yee’s legal fees because of their late disclosure of the 2018 document that unnecessarily created or prolonged litigation proceedings and created additional work to address the terms of the updated employment contract, on the eve of trial. They emphasized that it is extremely stressful and time consuming for a person to participate in a full lawsuit and trial, and the fact that it could have been avoided if HBC produced the proper employment contract at the outset required the Court’s express disapproval.
Results
Justice G. Dow ruled in favour of Mr. Yee, awarding him reduced substantial indemnity costs totaling $70,555.05, including fees, HST, and disbursements. The court found that HBC’s failure to produce the 2018 document, compounded by its reliance on an outdated 2015 agreement, constituted conduct “worthy of sanction” under Rule 57.01. Justice Dow emphasized that while full indemnity was not appropriate, HBC’s actions merited a higher cost award to Mr. Yee.
Conclusion
The Hudson’s Bay Company wrongful dismissal case underscores the importance of full and timely document disclosure, especially in wrongful dismissal claims. Employers must provide all relevant documents at the outset of terminating an employee, or at least at the outset of litigation, to avoid unnecessary litigation, delays and additional costs. The decision reinforces the principle that courts may impose higher costs on a party whose actions complicate or extend proceedings unfairly, and who do not disclose documents to the other side in a timely way.
Advice for Employees
If you are an employee dealing with wrongful dismissal or facing a situation where your employer has withheld key information, consult with an experienced employment lawyer. They can guide you through the legal process and help protect your rights. Contact us today for a consultation online or by phone at (416) 640-2667.
