The May 11, 2012 issue of The Lawyers Weekly reported that in the case of Mady Development Corp. v. Rossetto [2012] O.J. No 145, the Court of Appeal ruled that an executive fired for diverting labour and materials and using company funds to renovate his house should still be entitled to bonuses owed to him.
As vice-president of Mady Development Corp., Mr. Rossetto was an officer of the company and consequently a fiduciary duty was owed to the company. Despite the breach of fiduciary duty, the Court of Appeal recognized that in this case, the bonuses were “significant and non-discretionary” and agreed with the original arbitrator that they were “an integral part of Mr. Rossetto’s compensation under the employment contract. He was just as entitled to the bonus component of his compensation as he was to his regular salary.”
Mr. Gregory Sidlofsky, counsel for Mr. Rossetto, was quoted in The Lawyers Weekly: “Simply because an employee breached a fiduciary duty to his employer does not automatically disentitle the employee to compensation that is owed to him during the period of his wrongdoing”.
Bruce Roher, CA • IFA, CBV, CFE
President
Fuller Landau Valuations Inc.
151 Bloor Street West 12th Floor
Toronto Ontario M5S 1S4
broher@fullerlandau.com
416.645.6526 Direct
416.645.6500 General
416.645.6501 Fax
Bruce Roher's Blog 