Hampton v. Thirty-Five Charlotte Ltd.

This was the first reported New Brunswick case to expressly apply the “Wallace Factor” as a basis for awarding an employee additional compensation in respect of employer “bad faith” conduct. Our client, Mr. Hampton, was laid off after almost a decade of employment with Thirty-Five Charlotte Ltd. He was told that he would be given a letter of reference by the company if he signed a release. When Mr. Hampton sued, the company refused to provide a letter of reference and, in fact, advanced a number of scathing allegations of misconduct against the former employee. The New Brunswick Court of Queen’s Bench awarded Mr. Hampton “Wallace Factor” damages in recognition of the company’s unfairness.

The Hampton case is cited in a number of national employment law texts and academic papers, and is the only New Brunswick case referenced by the Manitoba Law Reform Commission in its 2001 report titled “Good Faith and the Individual Contract of Employment.”