A former Canfor employee has lost an appeal of a lower court ruling that dismissed claims for damages for wrongful dismissal and negligent misrepresentation.
In April 2007, Robert Lesage accepted a job at Canfor in Prince George as a regional controller where he would be responsible for the accounting functions at three mills in the panels division.
But roughly two months later, shortly after Jim Shepard became the new chief executive officer, the position was eliminated when the company cut 20.5 positions in operations in an effort to reduce payroll costs for head office and support functions by 25 per cent.
Lesage's job was split between two other regional controllers who had greater seniority and Lesage was offered a lesser job as a divisional accountant at the Polar sawmill in Prince George although his salary and benefits would remain the same.
Given two weeks to decide if he wanted the job, Lesage eventually said he was willing to give the new position a try but soon found the work dull and unchallenging. He also read a newspaper story in which Shepard said he was taking a 25 per cent pay cut which prompted Lesage to estimate he was 40 to 50 per cent overpaid and would also end up with a cut in pay.
In early August 2007, Lesage left Canfor to work at Parkland Industries LP in Grande Prairie, Alberta.
Lesage then launched a lawsuit against Canfor in which he sought damages for the lost income for the balance of the month between leaving Canfor and taking on the new job. He also sought compensation after he sold his home in Prince George for $40,000 less than the original purchase price.
The matter was taken to a B.C. Supreme Court trial in 2009 and the judge found in favour of Canfor, noting Lesage was given two weeks to decide if he wanted to take on the new position and dismissed claims that Lesage was entitled to three months severance.
Lesage also asserted that prior to accepting the job, he was assured Canfor was in good shape and the position was long-term and secure. However, the judge found the representatives Lesage talked to were genuinely unaware of plans to shut down any of the mills under his responsibility. The judge also found Lesage was aware the market was in a slump.
In taking on the job at Canfor, Lesage left Ainsworth Lumber Ltd. in 100 Mile House where he had been earning $110,000 a year as a comptroller and by 2009 he was earning $135,000 at Parkland. No income figure for Canfor was provided in the reasons for judgment.
In a ruling issued June 8, the Court of Appeal upheld the Supreme Court decision.
