Ontario Court of Appeal Denies Employee’s Claim for Vested Stock Units
In its recent decision in Preston v. Cervus Equipment Corporation, the Ontario Court of Appeal overturned the motion judge’s decision and found the wrongful dismissal settlement precluded the employee’s entitlement to vested stock units, despite these units automatically vesting upon termination under the company’s deferred share plan for employees. The plaintiff, Mr. Preston, had been an employee with Cervus Equipment Corporation from 2014-2018. During his employment, he participated in Cervus’ Deferred Share Plan, which enabled him to apply $20,000 of his annual bonus towards the purchase of stock units that would immediately vest. The plan provided that upon termination, vested ... [more]
The Supreme Court of Canada Provides Guidance on Interpreting Exclusion Clauses
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