Executive Summary: Key Legal and Evidentiary Issues

• The plaintiff, Chad Day, alleged constructive dismissal after being suspended from his role as TCG President without proper procedural compliance.

• Central legal issue was whether the administrative suspension breached Mr. Day’s employment contract or governance procedures.

• The TCG relied on its Governance Policy Manual to justify the suspension but failed to follow the mandatory steps outlined within it.

• The court assessed if conflict of interest concerns about Mr. Day’s father’s business dealings justified his suspension.

• Key evidentiary failures included missing complaints, ignored limitation periods, and absence of proper vetting by TCG’s Complaints Committee.

• Damages were awarded solely for wrongful dismissal; aggravated and punitive damages were denied due to lack of bad faith.

Facts and outcome of the case

Background and employment relationship

Chad Norman Alexander Day was the elected President of the Tahltan Central Government (TCG), an Indigenous governing body in British Columbia. He served four terms, beginning in 2014, and was remunerated through an employment contract that outlined his duties as the senior officer responsible for TCG’s operations. Over the years, the TCG transitioned from a small organization to a structured entity with over 50 employees and formal governance mechanisms, including a Governance Policy Manual and a Director Accountability Process.

In his fourth term, Mr. Day faced increasing tension with a faction of the Board and other Executive Committee members. Allegations of discourteous conduct, improper communications, and especially conflict of interest related to his father’s business dealings in the mining industry escalated over time. Mr. Day was eventually placed on administrative suspension with pay pending the investigation of several complaints.

Suspension and legal dispute

The core legal issue was whether the suspension constituted a constructive dismissal. Mr. Day argued that the suspension breached his employment contract and was procedurally flawed under the TCG’s own Governance Policy Manual. He claimed the Board did not follow the necessary steps, such as vetting complaints through the Chief Administrative Officer or Complaints Committee, nor did it properly handle limitation periods or provide specifics in the complaints.

The TCG maintained it acted within its authority and relied on a legal opinion suggesting Mr. Day was in a conflict of interest. It further claimed the suspension was lawful and consistent with its governance framework.

Court’s findings on constructive dismissal

The court held that Mr. Day had indeed been constructively dismissed. Justice Kirchner found that while the TCG had the authority to suspend directors, including the President, it had failed to follow its own procedures outlined in the Director Accountability Process. There was no evidence that a Complaints Committee had vetted or accepted the complaints, and some were outside the six-month limitation period. Additionally, the court held that the suspension significantly altered the terms of Mr. Day’s employment and breached an essential condition of the contract.

The court rejected the TCG’s arguments that it could rely on alternate contract provisions or implied authority. It also found that Mr. Day's employment duties and his elected role were indivisible, reinforcing his entitlement to protection under the employment contract.

Damages and costs

Mr. Day was awarded $320,725 in compensatory damages for wrongful dismissal, covering his base salary, allowances, and benefits through to the end of his fixed-term contract. No aggravated or punitive damages were awarded. The judge concluded there was insufficient evidence of bad faith or reprehensible conduct by the Board, even though the suspension was procedurally flawed. The TCG had relied on legal advice and did not act with malice.

Justice Kirchner indicated a preliminary inclination to award costs to Mr. Day at Scale B, subject to any further submissions from the parties.