William O’Reilly v. Jeff Hassman, et al.

(Ontario) (Civil) (By Leave)


Employment law - Employment law — Constructive dismissal — Doctrine of common employer liability — Applicant bringing action for recovery of salary and other entitlements against alleged common employers — What is correct test for common employer liability in Canada?.


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The applicant served as CEO of ClearMRI companies (US and Canada). His written employment agreement was with the US division but he reported to the Canadian division. The respondent, Tornado Medical Systems Inc. was the majority shareholder of ClearMRI Canada which was a wholly owned subsidiary of ClearMRI US. When Mr. O’Reilly’s employment ended he was owed substantial amounts for salary and other entitlements. He brought an action seeking recovery from the ClearMRI companies and Tornado as common employers and sought recovery from the directors for wages and vacation under Ontario’s Business Corporations Act, R.S.O. 1990, c. B.16, (“OBCA”)

The applicant obtained default judgment against the ClearMRI companies. He moved for summary judgment against the other defendants and was successful.

The respondents Tornado and Jae Kim appealed to the Court of Appeal. Tornado’s appeal was allowed and summary judgment against it set aside. Jae Kim’s appeal was dismissed.