• Sures v. Calian Technology Ltd., 2004 CarswellOnt 1888 (Ont. C.A.)
Howard Sures sold his business to Calian Technology Ltd., which then hired Sures as a regular employee. Sures did not, however, sell two of his subsidiary businesses. As part of the employment agreement between them, Sures committed he would devote his full time and attention to his duties as an employee of Calian Technology.
The company subsequently dismissed Sures on the grounds of breach of covenant and conflict of interest. Sures filed an action for wrongful dismissal, which was dismissed. Sures appealed.
In ruling on the latest action, the Ontario Court of Appeal found no basis to overturn the original trial judge’s decision. That trial judge ruled Sures owed a normal duty of loyalty and good faith to Calian, and that Sures’s working on behalf of his subsidiaries substantially exceeded the reasonable time contemplated by the employment agreement. As an employee Sures had also pursued potential business opportunities in his own interest and these were serious enough breaches to warrant summary dismissal.
The Ontario Court of Appeal held the trial judge had made no error in the principles of law that he applied, and his conclusions were fully justified.
Sures had deceived his supervisor; had caused his employer to be deprived of significant sums of money it was entitled to; and had used his employer’s equipment, space and time to pursue his own business. These constitute employee misconduct, the court reiterated, and the trial judge’s determination that this was cause for dismissal was to be deferred to.
The appeal was dismissed and Sures was assessed court costs of $12,500.
Howard Sures sold his business to Calian Technology Ltd., which then hired Sures as a regular employee. Sures did not, however, sell two of his subsidiary businesses. As part of the employment agreement between them, Sures committed he would devote his full time and attention to his duties as an employee of Calian Technology.
The company subsequently dismissed Sures on the grounds of breach of covenant and conflict of interest. Sures filed an action for wrongful dismissal, which was dismissed. Sures appealed.
In ruling on the latest action, the Ontario Court of Appeal found no basis to overturn the original trial judge’s decision. That trial judge ruled Sures owed a normal duty of loyalty and good faith to Calian, and that Sures’s working on behalf of his subsidiaries substantially exceeded the reasonable time contemplated by the employment agreement. As an employee Sures had also pursued potential business opportunities in his own interest and these were serious enough breaches to warrant summary dismissal.
The Ontario Court of Appeal held the trial judge had made no error in the principles of law that he applied, and his conclusions were fully justified.
Sures had deceived his supervisor; had caused his employer to be deprived of significant sums of money it was entitled to; and had used his employer’s equipment, space and time to pursue his own business. These constitute employee misconduct, the court reiterated, and the trial judge’s determination that this was cause for dismissal was to be deferred to.
The appeal was dismissed and Sures was assessed court costs of $12,500.
