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BC Court of Appeal affirms medical evidence not required to prove aggravated damages

Jurisdiction: - British Columbia

In Lau v. Royal Bank of Canada, 2017 BCCA 253, the British Columbia Court of Appeal overturned a $30,000 aggravated damages award attached to a wrongful dismissal judgment. During the initial trial the plaintiff gave evidence of the effects the termination had on his mental well-being but presented no medical evidence to substantiate his claims of mental distress. The court found the plaintiff was not harassed, scolded or or otherwise mistreated, and his testimony did not provide a sound basis for finding he suffered injury beyond the hurt feelings and distress that accompany any termination.

This decision affirms several important points surrounding mental distress claims in wrongful dismissal actions: actual bad faith conduct is a critical element of an award of aggravated damages; mental distress claims do not need to be accompanyed by proof of a psychiatric illness; and a plaintiff's own testimony absent medical corrobation is a valid consideration for the court.