CHAUDHRI: A lot can happen when an employer does not show up to court

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Martin Koshman received a letter by courier on Sept. 11, 2020. The news was bad.

His employer, Controlex Corporation had terminated him, with no explanation. All he was offered at the time was eight weeks of pay and benefits.

Koshman sued for wrongful dismissal damages.

A professional engineer by training, Koshman was the Vice President at Controlex where he directed the operational and property management functions of the business. He enjoyed plenty of autonomy in the role and was only required to report to the founder, Peter Dent, on major decisions. He earned $228,000 in salary, received benefits and a $300 monthly car allowance.

Koshman received the termination letter after 18-and-a-half years of service. He was 69 years old. As was later heard in court, Koshman planned to work until he was 75.

Perhaps more curious, were the events leading up to his termination.

Peter Dent, the founder of Controlex died suddenly in July 2020. His wife, Susan, a stranger to the business, took over. Almost immediately, Mrs. Dent phoned Koshman, stripping him of his signing authority for the company. She also instructed Koshman’s direct reports without his knowledge.

At trial, Koshman gave evidence that Ms. Dent visited his clients making “bizarre and defamatory” comments about him, including that he was a “nobody” and was “no good” and not to speak with him and to deal exclusively with her. A business owner who did work with Controlex filed an affidavit swearing that a few weeks after Mr. Dent’s death, Mrs. Dent called him and said she believed Koshman was not an honest man and was “on the take.”

His trial was to be heard in March 2023 but was adjourned to allow Controlex to retain new counsel. On the new trial date, Dec. 4, 2023, no one for Controlex appeared, but the trial went ahead as scheduled.

At trial, Justice Hackland noted over three years had passed since his termination and Koshman had not yet reemployed in a comparable position. The court took exception to the defamatory comments made by Mrs. Dent against Koshman and found they would obstruct his employment opportunities. The court awarded him 24 months of reasonable notice in the amount of $471,461.68.

But the court did not stop there.

Justice Hackland found that Koshman was treated in a highly disrespectful and offensive manner. The court found Ms. Dent set out to destroy Koshman’s reputation and then “upgraded her attack” by advancing groundless allegations of breach of fiduciary duty.

For this, along with other allegations of misconduct, the court awarded Koshman $50,000 in aggravated damages and $50,000 in punitive damages.

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The court went on to award Koshman his costs in the amount of $192,112.19.

This case is a primer on what not to do when exiting an employee.

Don’t serve up termination letters in an impersonal, stoic matter.

Don’t undermine senior employees prior to letting them go.

Don’t defame your employees to their clients.

Last but not least, don’t forget to show up to court.

Employers sometime feel justified in taking aggressive positions in litigation, especially when the company is in the midst of major change or turmoil. As this case illustrates, that rarely, if ever, turns out well.

Have a workplace question? Maybe I can help! Email me at sunira@worklylaw.com and your question may be featured in a future column.

The content of this article is general information only and is not legal advice.