Problem 4 (25 marks)

Katco Inc. has further legal problems. Andrew, who was in his final year as a Brock co-op student had commenced work with Katco Inc. on January 1st and was to continue working until May 31st in order to complete his final co-op term. Katharine was distressed that Andrew regularly came to work wearing sweat pants, t-shirts and hoodies, which she considered to be unacceptable attire and she complained a number of times. Andrew told Katharine that he did not understand her problem since he was working in front of a computer all day and did not meet any clients. He preferred to be comfortable rather than fashionable. On March 17^thAndrew came to work with spiked, coloured hair, two new earrings, flip flops and beach shorts claiming it was his "March Break" outfit. Katharine told him to go home and change and, when Andrew protested, fired him in front of the receptionist and three clients in the reception area. Katharine told Andrew that he was incompetent, unpresentable and would never become successful because of his attitude.

In subsequently discussing the firing with the receptionist, Katharine learned that Andrew:

(i)had taken client's files home on weekends to complete work which was a breach of confidentiality rules;

(ii)had completed marketing programs for his mother and two cousins during office hours and had not billed them for his services;

(iii)had made a copy of Katco Inc.'s graphics software which they had developed and taken it home.

Andrew has commenced an action for uryust dismissal and is seeking damages of $85,000.00. He claims that since he cannot complete his co-op accounting term he will not be able to graduate and will therefore be forced to spend an additional year at Brock University and therefore will lose a full year's salary. Andrew claims an additional amount of $100,000.00 for mental distress. Psychiatric evidence indicates that Andrew did suffer emotional distress and damage to his self-esteem as a result of the firing and was considering abandoning his aspiration to go into marketing or advertising as a result of Katharine's comments.

Required: Outline the issues which will be raised by the parties and the outcome of the action. Be certain to explain the applicable principles and their relation to the facts of this case.