Ontario Court of Appeal Upholds Danbury Ruling

Over a year ago, I posted about the decision in King v. 1416088 Ontario Ltd., dealing with the 'common employer' doctrine.

To briefly summarize, the case dealt with an unusual fact pattern in which Mr. King had worked for Danbury for many years, then the old business shut down, and the old owner's relative started a new business started up carrying on the Danbury name (which rights the new corporation had acquired many years prior).  However, part of Mr. King's duties prior to his dismissal involved making the accounting transition to the new company.

This week, the Court of Appeal released its reasons, upholding the trial decision.  It's a short endorsement, finding that the trial judge's decision was warranted.

It's a cautionary tale for employers, that it may be difficult or even impossible to transition a company in such a ways as to relieve the new company of employment-related liabilities of the old one.  There are better ways of addressing such transitional issues - talk to an employment lawyer before any large-scale restructures.

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This blog is not intended to and does not provide legal advice to any person in respect of any particular legal issue, and does not create a solicitor-client relationship with any readers, but rather provides general legal information. If you have a legal issue or possible legal issue, contact a lawyer.

The author is a lawyer practicing in Newmarket, primarily in the areas of labour and employment law and civil litigation.  If you need legal assistance, please contact him for information on available services and billing.