Negligent misrepresentation claims against employers: A matter for labour arbitrators or civil courts?

▤ Summary

The BC Court of Appeal in Stene v. Telus Communications Company, 2019 BCCA 215 reaffirmed the principle that claims that arise “inferentially or implicitly from the interpretation, application, administration or violation of the collective agreement” will fall within the jurisdiction of a labour arbitrator. Ms. Stene commenced an action regarding the s. Shortly before her trial, her lawyer sent the Insurance Corporation of British Columbia (“ICBC“) a settlement offer seeking $780,000 for her loss of earning capacity. In turn, Ms. Stene sued Telus for negligent misrepresentation on the basis that her settlement with for $325,000, as well as her expectation that she would be accommodated upon her return to work, were directly influenced by Mr. McNiven’s Representation. Telus applied to dismiss Ms. Stene’s action for want of jurisdiction on the ground that Ms. Stene’s negligent misrepresentation claim involved Telus’s accommodation responsibilities pursuant to the Collective Agreement and thus should be heard before a labour arbitrator. The BC Court of Appeal went on to characterize the parties’ dispute as concerning the truth or falsity of the Representation regarding Telus’s obligation to accommodate Ms. Stene’s disability in the workplace under the Collective Agreement.

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