Employee’s job terminated shortly after relocation from Winnipeg to Ottawa
An Ontario court has ruled that a Loblaw employee's acceptance of a severance offer via email created a binding settlement, even though he tried to renegotiate after his housing purchase collapsed following termination.
Justice Lisa Brownstone of the Ontario Superior Court of Justice dismissed Scott Johnstone's wrongful dismissal claim, finding that once his lawyer confirmed acceptance of settlement terms, the deal was done.
"Buyer's remorse, a change of heart, or even growing concern about his ability to close his house purchase do not entitle him to renege on a settlement."
The seven-year employee had relocated from Winnipeg to Ottawa in 2022 at Loblaw's request. Shortly after the move, and before closing on his new home, the company terminated Johnstone's employment without cause.
Settlement discussions ensued, with Johnstone's counsel initially demanding that Loblaw guarantee his mortgage payments until he found new work. Loblaw refused but offered an eight-month notice period, $1,500 toward legal fees, and confirmed it would provide relocation benefits and a letter verifying his ongoing salary for mortgage purposes.
On May 28, 2022, Johnstone's lawyer emailed Loblaw: "I can confirm receipt of instructions to accept your most recent proposal, subject to mutual agreement on the supporting documentation."
When Loblaw sent draft settlement documents, Johnstone's...
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