McFarlane v. King Ursa Inc.

Samfiru Tumarkin LLP secured more than $300,000 in damages for our client, Joanna McFarlane, in the case of McFarlane v. King Ursa Inc., a matter that was heard at the Ontario Superior Court of Justice (ONSC).

Senior Associates Mackenzie Irwin and Fiona Martyn successfully argued that McFarlane was constructively dismissed when she was asked to accept a demotion and pay cut after returning from maternity leave.

WATCH: Everything You Need to Know About Constructive Dismissals

What You Need to Know

• After receiving a promotion in March 2021, McFarlane was promoted again in October 2021 to “Executive Vice-President, Media & Analytics” at King Ursa. The role came with a significant salary increase from $220,000 to $300,000, and a phantom share allocation of 5% (up from 2.5%).
• Prior to April 3, 2023, McFarlane went on maternity leave. During this time, King Ursa was grappling with financial challenges due to the COVID-19 pandemic and decided to defer her maternity leave twice.
• On April 3, 2023, McFarlane received a new employment agreement from King Ursa — demoting her to the position she held prior to October 2021 and reducing her compensation to $210,000.
• McFarlane rejected King Ursa’s offer and resigned.

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Court’s Decision

The ONSC agreed with Samfiru Tumarkin LLP that King Ursa...

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