Milwid v. IBM Canada Ltd.
IBM Canada Ltd.
Law Firm / Organization
Osler, Hoskin & Harcourt LLP
Gregory Milwid
Law Firm / Organization
Israel Foulon Wong LLP

Background:

  • IBM Canada Ltd. appealed a summary judgment favoring Gregory Milwid in a wrongful dismissal claim.
  • The appeal challenged:
    1. The extension of the reasonable notice period beyond 24 months.
    2. The award of damages for Restricted Stock Units (RSUs) that would have vested during the notice period.

Key Points:

  1. Notice Period:

    • The motion judge awarded 26 months' notice, citing Milwid’s age, long service, specialized skills, and managerial position as exceptional circumstances.
    • The Court of Appeal upheld this decision, noting the precedent in Currie v. Nylene Canada Inc. and the non-transferability of Milwid’s skills.
  2. COVID-19 Impact:

    • An additional month was added, totaling 27 months, due to the pandemic’s impact on the job market.
    • This decision was supported as the pandemic was deemed an exceptional circumstance.
  3. Restricted Stock Units (RSUs):

    • The motion judge awarded damages for RSUs that would have vested, interpreting the termination clause in the Equity Award Agreement as ambiguous.
    • The Court of Appeal agreed, finding the clause did not clearly exclude common law rights, thus upholding the award.

Disposition:

  • The appeal was dismissed.
  • Costs of $20,000 were awarded to Milwid.

Conclusion:

  • The Court affirmed the extended notice period and RSU damages, highlighting the impact of the pandemic and contractual ambiguities in favor of the respondent.
Court of Appeal for Ontario
COA-23-CV-0237
Employment law
$ 20,000
Respondent