In Kirchmair v. EXP Global Inc., 2025 ONSC 3103, Justice Healey had a situation where the Defendant intentionally withheld an earned bonus of $148,000 from the Plaintiff in order to coerce him into agreeing a new, less favourable, bonus arrangement.
The bonus plan was non-discretionary and calculated on a mathematical formula with agreed payment dates .
This bonus payment was owing since early 2017 and remained unpaid as of the trial in 2025, some 8 years later.
In addition the Defendant was consistently late in paying past bonuses by approximately 7 months.
The Judge found that the Defendant acted in bad faith in the following manner:
- The refusal to pay the outstanding bonus and the persistent late payment of previous bonuses.
- The attempt by the Defendant to coerce the Plaintiff into agreeing to a less favourable bonus structure by withholding his bonus payment.
- Trying to build a case regarding his post termination conduct to lessen or eliminate their bonus obligation.
Even though there was no medical evidence of the mental stress suffered by the Plaintiff for the failure to receive his bonus, the Judge awarded the Plaintiff $150,000 in what was characterized as moral damages.
Quere: Is it just a coincidence that the award for moral damages was equal to the amount of the unpaid bonus?
As personal aside, if someone owed me $148,000 for 8 years, you can be sure that I would be severely mentally distressed.
The total settlement including 21 months termination pay ( pursuant to the employment contract ) plus vacation pay on the bonus , plus the bonus plus the moral damages comes to $695,537.
Then you add PJI for 8 years and costs to be determined.
Here is an interesting side note. The decision is dated May 26, 2025. The lawyers only received it March 12, 2026. Apparently the Court admin staff forgot to send it out.
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