Appellant
Respondent
Background: John Maynard was employed by Johnson Controls Canada LP from March 2004 until his termination without cause in June 2018. His compensation included a base salary, benefits, and a bonus and incentive plan involving Restricted Stock Units (RSUs).
Contract Details: The employment contract included a forfeiture provision for RSUs upon termination without cause, which Maynard claimed he was not informed about prior to his dismissal. His termination provisions also outlined the severance and benefits he was entitled to, as specified in the contract.
Dispute: Upon termination, Maynard was offered severance that excluded the value of the RSUs, which he refused to accept, leading to the lawsuit. The court at the first instance granted summary judgment in favor of Maynard, including in his severance the value of the RSUs.
Appeal: Johnson Controls appealed, arguing that Maynard was only entitled to the minimum severance payments as per the employment contract and that the motion judge's interpretation was incorrect.
Decision: The Court of Appeal disagreed with Johnson Controls, stating that the exclusion of the RSUs from the severance calculation breached the employment agreement. It upheld the motion judge’s decision to include RSUs in the severance package, affirming that the company's calculation and the arbitrary deadline for signing the release were inappropriate.
Outcome: The appeal was dismissed with costs payable by Johnson Controls to Mr. Maynard in the amount of $32,000 all-inclusive.
Court
Court of Appeal for OntarioCase Number
C70923Practice Area
Employment lawAmount
$ 32,000Winner
RespondentTrial Start Date
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