High Court Opens Door to Corporate Wrongful Dismissal Liability

Under corporate law, shareholders, officers and directors who get forced out or otherwise mistreated can sue their corporation for conduct that’s “oppressive or unfairly prejudicial to them or that unfairly disregards their interests.” The Ontario Court of Appeal has now allowed an employee, a very non-corporate boxing operator allegedly fired as a result of illegal reprisal, to sue for “oppression.” Significance: Opening the door to employee oppression lawsuits is a big deal because corporate directors and officers can be held personally liable for oppression. So, don’t be surprised if this case ends up in the Canadian Supreme Court [Abbasbayli v. Fiera Foods Company, 2021 ONCA 95 (CanLII), February 16, 2021].