High-Tech, High Award in Wrongful Dismissal Case

Graham Jones of Shields & Hunt represented Ming Nguyen in a wrongful dismissal action against Alcatel Canada Inc.

The Situation
Mr. Nguyen held a director-level position at Alcatel and had been employed with the high-tech company for two years and seven months when his employment was terminated. Alcatel provided him three weeks’ pay in lieu of notice and offered a further ten weeks’ salary provided he execute a Full & Final Release and agree not to take any legal action. Mr. Nguyen rejected Alcatel’s offer and retained Shields & Hunt. Shields & Hunt commenced a legal action on behalf of Mr. Nguyen and the case went to trial.

The Trial
At trial, Mr. Jones argued that despite Mr. Nguyen’s short period of employment, significant pay in lieu of notice in the range of nine to twelve months was warranted. He argued that the level of remuneration, the skill specialization and the difficulty in finding comparable employment, particularly given the difficult times for the telecommunications industry, were all factors that supported an award of notice in the upper range.

Alcatel’s lawyer argued that the telecommunications industry is market-driven and, as such, is a volatile industry with a boom and bust cycle. He argued that those employed within the industry understood that the high salaries paid came at the risk of uncertain employment. As such, he argued that a short notice period was appropriate and that the total of three months offered by Alcatel was sufficient.

The Result
The Judge rejected Alcatel’s position and was persuaded by the arguments put forward by Mr. Jones. The Judge found nine months to be the appropriate notice period and Mr. Nguyen was awarded damages in the amount of $117,059.60, inclusive of prejudgment interest. In addition, Mr. Nguyen was awarded his legal costs payable by Alcatel.

Mr. Jones is a partner with Shields & Hunt specializing in civil litigation. He can be reached at (613) 230-3232 ext. 307 or gjones@shields-hunt.com.