(April 12 – 18:20 ET) – A former regional manager for RBC Dominion Securities Inc. has won a split decision in his suit against the firm for wrongful dismissal.

James Michaud, was made the regional manager for DS’ Fraser Valley, Penticton, Kelowna, and Vernon territories in 1996. He was also a director of the firm and a 19-year veteran with DS and its predecessors when in early 1999, DS decided to transfer responsibility for his region to the regional manager in Calgary. This eliminated Michaud’s position as regional-manager position and his status as a director. DS offered to keep him on as a vice-president and as the manager of the Abbotsford branch.

Michaud declined the offer of a scaled back position, noting in an e-mail to his superiors that it would “greatly impair my future earning ability” and “the part of the job I enjoy most is gone.” DS executives Peter Armenio, and Peter Russell apparently expressed their disappointment with Michaud’s response and attempted to persuade him to stay, although they could not give him his job back.

On May 7, 1999, Michaud left his office in the Abbotsford branch for the last time. He was quickly courted by rival firms, ultimately signing on with Merrill Lynch in mid-December as a regional vice-president. At Merrill, he is responsible for a larger geographic area but he has slightly fewer investment advisors under his supervision and his compensation is lower.

Michaud sued DS for constructive dismissal, and the court has found in his favour, deciding that a 15-month notice period was merited in his circumstances. But it also found that he failed to mitigate his loss by not accepting the alternative employment offer and working out the notice period.

The court found that Michaud is entitled to the difference between what he would have been paid had he received proper notice and what he would have been paid if he had mitigated damages. It said that DS should also receive credit for what Michaud was paid by Merrill in that time. “I will leave it to counsel to do the necessary arithmetic,” wrote the Honourable Mr. Justice K.J. Smith.