Morningstar v WSIAT: Ontario’s highest court denies leave to appeal

February 23, 2022

The Ontario Court of Appeal has denied leave to appeal from the Divisional Court’s decision in Morningstar v WSIAT. As a result, the Divisional Court’s decision remains good law: that an employee’s claim for constructive dismissal is not statute-barred by the Workplace Safety and Insurance Act (“WSIA”), even where the facts giving rise to a constructive dismissal claim also stem from a compensable workplace injury.

The Facts

Ms. Morningstar commenced a civil lawsuit claiming, among other things, constructive dismissal after enduring persistent bullying and harassment at the workplace, causing her to resign. Her employer responded by filing an application before the Workplace Safety and Insurance Tribunal (“WSIAT”) under section 31 of the WSIA for a declaration that Ms. Morningstar’s action was statute barred since it fell within the jurisdiction the WSIA. The relevant provisions of the WSIA provide that “a worker is entitled to benefits under the insurance plan for chronic or traumatic mental stress arising out of and in the course of the worker’s employment […] as if the mental stress were a personal injury by accident.”

The Decision

In its decision, the WSIAT held that the nature of Ms. Morningstar’s civil action was “inextricably linked” to a compensable workplace injury for mental distress and it was therefore statute barred. Ms. Morningstar applied to have the decision reconsidered, however the WSIAT confirmed the findings from the original decision.

On Judicial Review of the WSIAT’s decisions, the Divisional Court sided with Ms. Morningstar and quashed the WSIAT’s “unreasonable” decisions to bar her claims for constructive dismissal and for aggravated, moral, and punitive damages. It found that while an action for an employee’s personal injury can properly be barred by the WSIA, “it would appear to be unreasonable to bar an action for constructive dismissal simply because the same facts that relate to that action also incidentally support an action for personal injury”. The damages sought by Ms. Morningstar in her civil action are separate, recognized heads of damages in Canadian law for constructive and wrongful dismissal, and are not benefits available under the WSIA.

Takeaway

Since leave to appeal to the Ontario Court of Appeal was denied, the Divisional Courts decision will stand, meaning that employees are not precluded from bringing a civil action for constructive dismissal where the facts of the constructive dismissal claim also relate to a workplace injury. For more information about this decision, or if you are experiencing harassment in the workplace, feel free to contact any of the lawyers at our firm.