When Suing Your Employer Backfires: BC Court Awards Damages but Finds Employee Repudiated Contract

A long-term employee of a small agricultural trading company in British Columbia recently learned that taking legal action too soon can cost thousands in lost severance. In Adrain v. Agricom International Inc., 2025 BCSC 1842, the Supreme Court of British Columbia ruled that while the employer lacked just cause to fire the employee, her decision to sue for wrongful dismissal during her working notice period amounted to repudiation of her employment contract.

The outcome serves as a practical warning for employees and reassurance for employers about how B.C. courts approach workplace disputes, working notice, and early lawsuits under the Employment Standards Act and common law.

The Case at a Glance: What Happened?

Larraine Adrain worked for Agricom International Inc. for over 30 years, reporting directly to its founder and president, Tyler Thorpe. When Mr. Thorpe decided to retire and wind down the business, he offered to sell it to Ms. Adrain for one dollar. She declined and, through her lawyer, demanded $200,000 in severance, equivalent to 24 months’ notice.

Agricom did not respond to the demand letter, instead writing directly to Ms. Adrian to reiterate his offer of sale and providing 13 months’ notice of her employment ending on May 31, 2026 as the alternative. Unsatisfied, Ms. Adrain’s lawyer sent another letter and then filed a wrongful dismissal lawsuit while she was still working through her notice period. Mr. Thorpe treated the lawsuit as incompatible with continued employment and dismissed Ms. Adrain immediately, citing just cause and repudiation. Agricom continued paying her salary for a short period on an ex-gratia basis.

What the Court Decided

Justice Brongers found that Agricom did not have just cause to terminate Ms. Adrain. It was not misconduct for her to have a lawyer send demand letters or to assert her legal rights.

However, the Court ruled that by suing during her working notice period, Ms. Adrain effectively repudiated her employment contract, ending her right to the balance of her notice. Under established B.C. case law, including Suleman v. BC Research Council and Giza v. Sechelt School Bus Service Ltd., employees who receive working notice must continue to perform their duties in good faith. Suing the employer before the notice period ends violates that obligation.

Damages Awarded

While Ms. Adrain was entitled to 24 months’ reasonable notice based on her age, tenure, and role, the Court determined that both the notice period and the repudiation should be taken into account in determining the appropriate damages. Since Agricom had already provided 13 months of working notice, and because Ms. Adrain repudiated her contract 1.5 months into that period, the Court reduced her damages by 11.5 months representing the balance of her notice period.

The Court deducted a further one-month of notice to account for potential re-employment and denied her claim for discretionary bonuses due to a lack of contractual entitlement. Ms. Adrian was ultimately awarded $47,254.70 for lost salary and cell phone reimbursements once the ex gratia, post-dismissal payments were accounted for.

Why This Case Matters for BC Employers and Employees

1. Working Notice Must Be Honoured

Once a working notice is provided, both parties must uphold the contract until the end date. Employees who sue early risk losing part of their severance entitlement.

2. Demand Letters Are Not Cause for Termination

The Court reaffirmed that employees can retain legal counsel and negotiate their rights under the Employment Standards Act without breaching trust. Context and proportionality are key.

3. Repudiation Limits Recovery

Even when an employer lacks just cause, an employee’s actions and conduct, in this case a premature lawsuit, can reduce damages significantly.

4. Employers Benefit from Clear Communication

Employers should provide written notice, specify end dates, and document all discussions to avoid disputes about timing and compensation.

5. Employees Should Seek Legal Advice Early

Employees nearing termination should speak with an employment lawyer before taking action that could unintentionally forfeit part of their claim.

How Achkar Law Helps BC Employers and Employees

At Achkar Law, we advise both employers and employees across British Columbia on wrongful dismissal, severance pay and working notice disputes.

Our team helps clients:

Draft and review compliant employment and termination agreements
Respond to or defend against wrongful dismissal claims
Manage risk during notice or termination periods
Resolve disputes efficiently while protecting legal rights

As Christopher Achkar, employment lawyer and founder of Achkar Law, explains:

“Taking legal action can sometimes lead to unintended consequences for both employees and employers. Recent BC court decisions highlight why it is critical to fully understand the risks before proceeding, making early advice from an experienced employment lawyer essential.”

Protect Your Rights Before Problems Escalate

The Adrain decision reminds both employers and employees that timing matters. A premature lawsuit can reduce an employee’s recovery, while clear documentation protects employers from ongoing liability. If you are facing a dispute over termination, notice, or just cause, contact Achkar Law for experienced legal guidance tailored to your situation.

Call toll-free: 1-800-771-7882

The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Achkar Law Professional Corporation and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Achkar Law Professional Corporation. ©

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