$2 Million Awarded in Landmark Case Against Royal Bank of Canada

A Canadian court has awarded substantial damages to a former employee of Royal Bank of Canada after finding that her dismissal for cause was unjustified.

The employee, identified as Silva, had been working as a financial planner for 12 years when she was terminated in 2018. The bank alleged that she had forwarded confidential client information to her personal account by emailing two client files to herself.

However, an investigation by the Mutual Fund Dealers Association (MFDA) found that the breaches were 'minor in nature' and took no action other than issuing a cautionary letter. The court concluded that the bank's internal investigation was flawed and there was no valid cause for dismissal.

The court awarded Silva $1,919,272 to compensate for her lost future income and benefits based on what she would have earned in this period had the employer not terminated her employment. Additionally, the court awarded $150,000 in aggravated damages and $50,000 in punitive damages, penalizing the bank for its egregious conduct leading up to and following the dismissal.