By Howard Levitt and Nadim Mansour

In a column last summer titled “Cautionary tale shows risks of both sides ‘going for the jugular’ in court,” we cautioned against the dangers of making exaggerated allegations, such as human rights violations, before the court.

That warning just gained renewed significance.

In Chin vs. Beauty Express Canada Inc., the court awarded a dismissed employee $15,701.71 after a two-day trial for wrongful dismissal. The catch? The court refused to grant any legal costs to the successful employee, placing her in the unenviable position of being on the hook for the full amount of her lawyer’s fees.

One would correctly imagine that a typical lawyer’s fees for time spent preparing and litigating a two-day trial at the Ontario Superior Court of Justice, including all of the preliminary steps, vastly outweighs $15,701.71.

The employee, aged 69, had worked as a part-time esthetician for 20 years, earning between approximately $13,000 and $26,000. When she was let go, she filed a claim seeking almost $200,000. This included claims for aggravated and punitive damages, along with allegations of human rights violations. The full amount of the nearly $200,000 claim was vigorously pursued at trial.

The trial verdict concluded that the employee was wrongfully dismissed — but rejected her claims for aggravated damages, punitive damages, and human rights violations. And, even if her allegations had been upheld, how much would those claims have been actually...

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