If an employer dismisses an employee without cause, pays the employee a considerable amount for severance, and the parties sign a full and final mutual release absolving each other from any further claims, can the employer, upon discovering the fact that the employee had lied about his actions while employed, successfully sue the employee for the recovery of the severance funds?
Yes, says the Court of Appeal for Ontario in the case of York University v. Markicevic, 2018 ONCA 893 (CanLII).
Sandra McDonald’s legal saga against the Embassy of the United States at Ottawa is a long and interesting story. On July 17, 2012, Ms. McDonald, a former employee of the embassy, obtained default judgment in the amount of approximately $250,000.00 against her ex-employer after it failed to defend her wrongful dismissal case.
The judgment received a fair amount of media attention at the time. Although, even then, at least one Ottawa employment lawyer was sceptical; telling the Toronto Star , “Good luck to her. The U.S. Treasury is already in debt to the tune of $13 trillion.”
Less well publicized is what has happened since. As expected, Ms. McDonald has not seen her money. However, rather than simply ignore the judgment, the US Embassy has, in fact, responded to the case.
