E. E. v. Canada Employment Insurance Commission

E. E. v. Canada Employment Insurance Commission

The Tribunal held that the appellant met the onus to show that 85% of the $55,000 settlement constituted moral damages or compensation unrelated to earnings, leaving 15% ($8,250) as earnings related to loss of salary; together with undisputed vacation and termination pay of $10,464.97 these amounts ($18,714.97) are...

Source-derived case information.

Citation
2016 SSTGDEI 16
Parties
Appellant: E. E.; Respondent: Canada Employment Insurance Commission; Employer: Employer (De)
Court
Social Security Tribunal of Canada
Jurisdiction
Canada
Judgment Date
1 February 2016
Procedural Posture
Employment Insurance Appeal / General Division Decision Following Hearing
Outcome
Appeal allowed in part
Legal Topics
Allocation of Settlement Payments, Definition of Earnings, Settlement Agreement Characterization, Deduction of Legal Fees
Source Language
english
Employment Insurance Social Security Administrative Law Allocation of Settlement Payments Definition of Earnings Settlement Agreement Characterization Deduction of Legal Fees

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Parties

E. E.

Appellant

Canada Employment Insurance Commission

Respondent

Employer (De)

Employer

Procedural Posture

Employment Insurance Appeal / General Division Decision Following Hearing

Legal Issues

  1. 1 Whether amounts received under the settlement constitute earnings under section 35 of the Employment Insurance Regulations
  2. 2 How earnings must be allocated under section 36 of the Employment Insurance Regulations
  3. 3 Whether legal fees are deductible and, if so, in what proportion

Ratio Decidendi

The Tribunal held that the appellant met the onus to show that 85% of the $55,000 settlement constituted moral damages or compensation unrelated to earnings, leaving 15% ($8,250) as earnings related to loss of salary; together with undisputed vacation and termination pay of $10,464.97 these amounts ($18,714.97) are earnings under s.35 and must be allocated under s.36(9); only 15% of incurred legal fees ($2,221.22) were deductible against the earnings portion, producing a total allocation of $16,493.75, and the appeal is allowed in part.

Court Disposition

Appeal allowed in part

Orders

  • $10,464.97 (vacation and termination pay) and $8,250.00 (15% of $55,000 settlement) are earnings and to be allocated pursuant to s.36(9) of the Employment Insurance Regulations commencing with week of lay-off/separation
  • Only $2,221.22 (15% of legal fees $14,808.11) deductible against the earnings portion