Tuesday, March 15, 2011

Ontario Employment Law: Wrongful Dismissal Settlements and Equalization of Net Family Property

Are wrongful dismissal claims to be considered in calculating equalization payments in Ontario family law proceedings?

The answer is an unqualified "yes."

In a January 2011 ruling of the Ontario Superior Court in D'Amico v. D'Amico, the wife, Mrs. D'Amico, had an pending lawsuit against her former employer for wrongful dismissal on the date of marriage.

After the date of marriage, she received a settlement of $17,884.60 in the suit.

After setting off the legal fees incurred in connection with this employment law claim, the Court valued her "contingent claim" for damages as of the date of marriage at $6,776.30, and factored in this amount in considering the applicable equalization payment in this proceeding.

Read the full decision here.
- Robert Tanha, Toronto

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