Historic human rights ruling: Alberta tribunal sets record with landmark damages award, redefining the rules on compensation and deterrence

John A.C. Morse and Lauren Sorel

The Human Rights Tribunal of Alberta (the “Tribunal”) recently awarded three complainants a total of $273,274.91 in compensation, with $155,000.00 of this amount designated as general damages – a new record in Canadian human rights law. This landmark decision not only raises the bar for compensation but also underscores the importance of deterrence against discriminatory actions, particularly those related to sexual and gender-based discrimination.

Case Overview: Oliva, Pascoe, and Strong v. Gursoy, 2024 AHRC 45

This case involved three female employees (Oliva, Pascoe, and Strong) of TJ Construction Management Ltd. (“TJCM”), each of whom left their positions after being subjected to severe sexual harassment and discrimination based on gender and physical disability by their boss, Gursoy.

• Oliva was employed by TJCM for just over one year. She experienced various instances of sexual harassment and gender-based discrimination due to inappropriate comments, touching, and requests from Gursoy. Additionally, the Tribunal found that Gursoy engaged in discrimination based on physical disability by demanding details of a medical diagnosis that were irrelevant to Olivia’s employment.
• Pascoe worked with TJCM for approximately one month. Her complaint mirrored Oliva’s, involving inappropriate sexual comments, advances, and touching by Gursoy.
• Strong, the third employee, worked for TJCM for approximately eight months. She was also subjected to inappropriate touching and suggestions by Gursoy and faced additional mistreatment, including being berated and demoted due to her pregnancy.

Each of the complaints was upheld despite being untested by the Respondent and based solely on documentary evidence and hearing submissions, as Gursoy was removed from the proceedings for his “refusal to treat the complaints with civility and respect.”

While the general damages were distributed among the complainants, the $75,000.00 awarded to Oliva is the highest individual award of general damages in the human rights context. The substantial award in this case was supported by the finding that Gursoy’s conduct was “deserving of denunciation” and had severe impacts on each complainant, particularly Oliva, who suffered from depression as a result of her employment with TJCM.

In a separate decision, the Tribunal awarded significant costs related to these proceedings, granting each complainant $10,000 despite no evidence of substantial legal fees incurred. The Tribunal deemed a costs award appropriate due to Gursoy’s “constantly egregious behaviour.”

Implications

This decision signifies a shift toward using general damages not only for compensation but also as a punitive measure to deter serious discriminatory behaviour. Employers must now be more vigilant in preventing and addressing such misconduct to avoid substantial penalties. Proactive measures include maintaining a safe work environment, implementing clear anti-discrimination policies, conducting fair investigations, and seeking legal advice early.

This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact a member of our Labour and Employment Group.

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