Steven Friedrick, an employee of Kelturn Drywall Ltd. from 2005 to 2017, participated in a Retirement Compensation Arrangement (RCA) established in 2011.
From 2012 to 2014, Mr. Friedrick directed approximately $35,000 annually from his bonuses into the RCA.
After his employment ended, he discovered that Kelturn made no additional contributions beyond these bonuses.
Mr. Friedrick claimed Kelturn breached the RCA terms by failing to contribute further, but the Chambers judge ruled against him, finding no such obligation in the RCA terms.
Legal Issues:
Interpretation of the RCA terms regarding Kelturn’s obligation to make contributions beyond employee-directed bonuses.
Whether the Chambers judge erred in interpreting the RCA as not requiring additional employer contributions.
Judgment:
The Saskatchewan Court of Appeal upheld the Chambers judge's decision.
It determined that the RCA intended only to facilitate tax-deferred employee bonuses and imposed no additional obligations on Kelturn to contribute beyond bonuses.
Disposition:
The appeal was dismissed, with costs awarded to Kelturn Drywall Ltd.
Costs/Award:
The total cost awarded was not explicitly stated in the judgment but was granted “in the usual manner.”
