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LABOUR RELATIONS

National Bank of Canada v. Lepire

T-775-04

2004 FC 1555, Blais J.

5/11/04

15 pp.

End of Employment--Judicial review of adjudication award dated March 15, 2004 ([2004] D.A.T.C. No. 116 (QL)) ordering National Bank of Canada to pay respondent compensation equivalent to 12 months' salary with interest--Respondent hired September 28, 1971, by Provincial Bank, now National Bank, as account manager from December 1996 until dismissal--On September 12, 1997, respondent granting loan to mother and subsequently administering loan, contrary to Code of Professional Ethics-- In October 2001, respondent opening account allowing her former husband to sign any document pertaining to business account--Employer not noticing this until August 2002, then dismissing respondent--In complaint of unjust dismissal respondent not seeking reinstatement, but claiming miscellaneous monetary compensation including moral damages of $25,000 to $50,000--Adjudicator deciding dismissal unjust--Notion of good faith found in Civil Code of Québec, Arts. 6, 7, 1375--Obligation to demonstrate good faith in contracts of employment giving rise to further obligation, to be faithful and honest in relation to one's employer, under Civil Code, art. 2088--Bank need not establish adversely affected in determining whether respondent placed herself in conflict of interest situation--Mere existence of conflict of interest creating situation of potential prejudice, especially important consideration for banking institution--Banking system largely based on honesty and integrity, and relationship of trust between employer-employee, as between Bank and customers, essential--Adjudicator's analysis of mitigating circumstances unreasonable in many respects--Reasons cited in connection with both initial breach of Code of Ethics concerning respondent's mother and breach concerning former husband may appear defensible in human terms, but unacceptable in context of employer-employee relation in banking institution--Adjudicator's analysis, conclusions of fact and law unreasonable in circumstances, intervention of Court warranted--Adjudicator's decision dismissal unjust set aside --Compensation of 12 months' salary granted to respondent unreasonable in circumstances--Application allowed--Civil Code of Québec, S.Q. 1991, c. 64, Arts. 6, 7, 1375, 2088.

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