What happened after a broker quit without proper notice

A B.C. broker who quit without giving proper notice under his employment contract doesn’t owe his former brokerage any money for damages, because the brokerage couldn’t prove any lost income due to the resignation, the B.C. Civil Resolution Tribunal has ruled.

John Fleming Insurance Agency (JFIA) hired Daivik Mehta as an insurance broker in January 2022. In mid-October that year, Mehta quit without giving three weeks’ notice.

Although the CRT’s decision indicates Mehta provided the tribunal with his reasons for quitting without notice, the reasons were not stated in the ruling.

Mehta signed an employment contract with JFIA stating: “The employee agrees to give 3 weeks written notice of intention to leave his/her employment with the company. The employee shall not be entitled to receive any severance or outstanding holiday pay, salary and/or commissions if 3 weeks written notice is not given.”

The brokerage argued Mehta had breached the contract and claimed $3,000 for lost income related to his resignation.

Mehta argued the terms of the contract limited the brokerage’s remedies for quitting without proper notice to recouping severance, outstanding holiday pay, salary and/or commissions. He also noted the brokerage had accepted his resignation by emailing the Insurance Council of British Columbia to advise of Mehta’s departure.

Ultimately, the CRT didn’t address any of the broker’s arguments because it found the brokerage could not prove damages for lost income. The tribunal found the broker had breached the employment contract, but noted the onus was on the brokerage to prove damages flowing from the breach.

“Here, JFIA has provided no evidence or submissions about how it determined it lost $3,000 due to Mr. Mehta’s resignation,” CRT Tribunal member Christopher C. Rivers wrote in a decision released last week.

“I infer JFIA claims $1,000 for each week of notice. However, JFIA provided nothing at all to support that claim, such as records of the revenue Mr. Mehta brought in for JFIA or evidence from clients who chose not to do business with JFIA due to Mr. Mehta’s sudden departure. Without any evidence, I am unable to determine JFIA’s damages and I dismiss its claims.”

Feature image courtesy of iStock.com/Charnchai

David Gambrill