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LABOUR RELATIONS

Gélinas v. Financial Transactions and Reports Analysis Centre of Canada

T-1190-03

2004 FC 1755, Tremblay-Lamer J.

17/12/04

27 pp.

Defendant Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) established under Proceeds of Crime (Money Laundering) and Terrorist Financing Act-- Plaintiff employed by defendant between October 9, 2001 and March 26, 2003--Hired as senior liaison officer and, when employment terminated, held position of Eastern Regional Director--Plaintiff informing employer about intimate relationship with one of four subordinates under his direction in Montréal office--Dismissed as Quebec regional office manager, refusing in writing offer of demotion employment in Ottawa--Defendant given formal notice to reinstate plaintiff in duties with full compensation, but refusing to comply with formal notice, hence litigation--Plaintiff arguing defendant's acts, terminating employment, offering him lower-level position in Ottawa, constituting discrimination based on marital status, in contravention of Canadian Charter of Rights and Freedoms, s. 15--No evidence showing defendant's decision in any way related to plaintiff's marital status-- Plaintiff dismissed as consequence of relationship between him and subordinate employee, delay in informing superiors-- Equality comparative concept and, without relevant "comparator", no basis for plaintiff's Charter argument-- Necessary instead to focus on conflict of interest in which plaintiff alleged to have placed himself, later conduct, response by employer--Plaintiff may legitimately be criticized for fact intimate relationship with subordinate not disclosed in timely fashion so that steps could be taken to avoid real or potential conflict of interest--Delaying disclosure of relationship by month or two not demonstrating such serious lack of judgment as to constitute just cause for dismissal-- Defendant not demonstrating plaintiff's conduct violated essential term of employment contract, constituted abuse of confidence inherent to employment or fundamentally incompatible with employee's duties to employer--Having regard to factors mentioned in Wallace v. United Grain Growers Ltd. (Public Press), [1997] 3 S.C.R. 701, reasonable notice of termination in applicant's case four months--When relationship of trust between employer and employee has substantially deteriorated, reinstatement probably inappropriate--No valid reason warranting order of reinstate-ment because employment relationship irremediably breached --Not unreasonable for plaintiff to refuse job offered in Ottawa--Punitive damages exception to general rule damages intended to restore injured party to original state--Only vicious, malicious conduct can justify award of punitive damages--Nothing in record could warrant award of punitive damages--Plaintiff adducing no evidence of physical, mental injury attributable to defendant--No reason, therefore, to award damages for mental anguish--Action allowed in part-- Proceeds of Crime (Money Laundering) and Terrorist Financing Act, S.C. 2000, c. 17--Canadian Charter of Rights and Freedoms, being Part I of the Constitution Act, 1982, Schedule B, Canada Act 1982, 1982, c. 11 (U.K.) [R.S.C., 1985, Appendix II, No. 44], s. 15.

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