In the recent landmark case of Hannan v. Scouts Canada, 2024 ONSC 5361, the Ontario Superior Court of Justice dealt with issues regarding volunteer rights and organizational procedural fairness. In that case, the Court determined that a not-for-profit organization acted wrongfully when it refused to renew its engagement with a longstanding volunteer on the basis of alleged, but unproven misconduct. This decision will have a significant impact on the way in which not-for-profit and charitable organizations manage volunteers.
Background
86-year-old Wayne Hannan had been a volunteer with Scouts Canada since 1958, when Scouts Canada decided not to renew his volunteer status for the 2023-2024 season. In a letter provided to Mr. Hannan informing him that his volunteer position would not be renewed, Scouts Canada cited safety concerns and resistance to program adaptation as reasons for the non-renewal. Mr. Hannan contested this decision, arguing that Scouts Canada failed to follow its own disciplinary and performance management procedures regarding volunteer termination.
The claim
The crux of the issue before the Court was whether Scouts Canada has followed its own policies and procedures when terminating Mr. Hannan’s volunteer position. Mr. Hannan submitted that by breaching its own policies, Scouts Canada had subjected him to unfair treatment. Scouts Canada argued that the decision was justified, was within their discretionary powers and that the policies on termination and discipline did not apply to volunteers in any event.
The Court’s decision
The Court determined Scouts Canada had not treated Mr. Hannan in accordance with its own policies, which not only applied to Mr. Hannan but were contractual in nature, despite his volunteer status. As a result, Mr. Hannan was found to have a legitimate expectation that these rules would be followed. Further, the Court determined that Scouts Canada’s decision not to renew Mr. Hannan’s position was based on allegations of misconduct and as such, Mr. Hannan had the right to assume that the disciplinary policies would apply. Scouts Canada failed to provide evidence to the Court to substantiate the allegations of misconduct. Consequently, the Court concluded that the accusations in the termination letter were untrue and misleading and that the refusal to renew Mr. Hannan’s volunteer position for alleged cause constituted a wrongful termination.
As a remedy, the Court determined that Scouts Canada’s disciplinary and appointment policies applied to volunteers, including Mr. Hannan and that their treatment of him was arbitrary, discriminatory and made for an improper purpose. The Court did not reinstate Mr. Hannan for the season, as he requested, but mandated that his future volunteer application be processed in good faith. The Court also awarded Mr. Hannan costs in the amount of CA$50,372.00.
Key takeaways for organizations:
This decision sets a new precedent for how volunteer terminations should be handled, reinforcing the importance of procedural fairness and adherence to organizational policies. As a result, organizations who engage volunteers should take note of the following:
- Even in volunteer settings, an organization’s formal policies and codes of conduct can create a legally binding framework. Courts can interpret these policies as part of a contractual framework, especially if volunteers agree to be bound by them.
- Decisions regarding the renewal or termination of volunteers should be based on clear, documented reasons, not arbitrary or unsupported claims.
- It is essential for organizations to document any concerns related to performance, misconduct or code of conduct breaches. Clear records of warnings, coaching or disciplinary actions are crucial for justifying decisions such as termination or non-renewal of volunteer roles.
For more information on this case or any questions related to the legal implications of this decision on your business, please contact the authors, Pamela Shin or Allison Buchanan.
Thank you to our articling student Placide Ilunga for his contribution to this blog.
