In May 1986, the directors of Universal Printing Co., publishers of a newspaper with a large circulation, approached Bell to persuade him to become their assistant advertising manager. They suggested that, if he accepted, he would probably succeed the present advertising manager upon that manager’s retirement. At the time, Bell held a responsible position with an advertising agency and was 42. During the discussions, Bell emphasized that his present position was a very satisfactory one, that it was important at his age that his employment be permanent, and that he would not consider a change that did not offer the prospect of a position lasting for the balance of his working life.
After careful consideration, Bell accepted the position offered at a salary of $65 000 a year. He was promoted to advertising manager in 1994, and in the period from May 1986 to July 2002, his salary was increased regularly until it reached an annual sum of $160 000. In addition, every year he received a discretionary Christmas bonus approved by the directors and a special distribution pursuant to a profit-sharing plan confined to selected employees and made under the sole direction of the principal shareholder of Universal Printing Co. Ltd. Bell’s receipts under the profit-sharing plan were $23 600 in 1999, $20 400 in 2000, and $17 000 in 2001.
In August 2002, the president of Universal Printing Co. Ltd., T. G. Dodds, called Bell into his office and, after some opening pleasantries about Bell’s prowess in golf, told Bell he thought another advertising manager he had in mind could produce better results for the company. Dodds told Bell that if he could see his way clear to resigning forthwith, he might have three months’ salary in lieu of notice. Bell replied that he could not afford at this stage in his career to admit to the incompetence implied in a resignation and refused. Later in the afternoon, his secretary brought him the following letter:
August 8, 2002
Dear Mr. Bell:
This is to confirm the notice given to you today of the termination of your employment with Universal Printing Co. Ltd. as of this date. Enclosed is a cheque for your salary to date. Your pension plan has been commuted to a paid-up basis that will pay you $3500 a month commencing at age 65.
T. G. Dodds
Bell at once made efforts to secure other employment and by December 8, 2002, found a position with an advertising agency at a salary of $42 000 a year. If he had remained a further year with Universal Printing Co. Ltd., the paid-up value of his pension would have increased to $6500 per month.
Bell brought an action against Universal Printing Co. Ltd. for damages for wrongful dismissal. What amount of damages, if any, should he recover? Are there any additional facts you would like to know?