David Harris - Canadian Employment Law
Shirley Marshall worked for Watson Wyatt, a management consulting company. She was terminated after roughly 12 months of employment. She had been given a series of letters signed by the company and herself, setting out the terms of her compensation, which were part base salary and part commission. She was terminated - without any allegations of cause. When she refused to accept the offer of compensation, she sued. She was met with arguments of cause to justify her termination. Like the McNamara case, these allegations were withdrawn shortly prior to the trial commencing. The company also did not pay her the commissions they admitted were owing, due to a dispute as to the sum that was owed - Shirley had claimed more commissions were owing and was successful in maintaining that claim at trial. The jury ordered the company to pay Shirley 12 months compensation, and also ordered a punitive damage award of $75,000 and full legal costs. The total award with commissions owing at termination date exceeded $500,000.

The Court of Appeal reduced the trial judgment by eliminating the award of punitive damages. Shirley had agreed to withdraw this claim before the appeal had been heard. All other awards made by the jury were sustained, with the exception of one commission component in which a new trial was ordered.