The recent Court of Appeal case of Monterosso v Metro Freightliner Hamilton Inc., 2023 ONCA 413, provides some clarity to businesses on whether independent contractors have an obligation to mitigate their damages. In this case, Metro Freightliner Hamilton Inc. (“Metro Freightliner”), hired Mr. Monterosso as an independent contractor for a 72-month fixed term contract. On November 22, 2017, Metro Freightliner terminated Mr. Monterosso’s services without cause while Mr. Monterosso still had 65 months left on his fixed-term contract.
The trial judge found that the contract did not have a termination provision and that it clearly and unambiguously provided for a 72-month fixed term contract.
Metro Freightliner challenged the trial judge's decision, asserting that the judge committed several errors throughout the decision. Among Metro Freightliner’s arguments was the assertion that the trial judge made a mistake in determining that Mr. Monterosso was not required to mitigate his damages.
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