Mental distress claims count as personal injury under workers' comp, court rules

The employer never responded to his investigation requests, then declared the contract over

Mental distress claims count as personal injury under workers' comp, court rules

A pathologist who repeatedly reported a colleague's threatening and abusive behaviour took medical leave on his physician's advice, had his contract end without renewal after VIHA failed to respond to his concerns, and was forced to relocate across British Columbia to continue practising.

In a decision dated April 13, 2026, Justice Basran of the B.C. Supreme Court found that the WCAT Vice Chair's determination that the claims were based on personal injury as defined by the Workers Compensation Act was not patently unreasonable, despite the petitioner framing the dispute as breach of contract.

Complaints that went nowhere

Dr. Aref Tabarsi worked as a pathologist at Campbell River General Hospital from 2005 under a clinical service contract with North Island Pathology, part of Vancouver Island Health Authority (VIHA). In 2013, VIHA appointed a second pathologist, referred to as Dr. R., and interpersonal disputes soon followed.

The court noted that "Dr. Tabarsi made several complaints that Dr. R. engaged in a course of conduct that he found aggressive, verbally and emotionally abusive, and threatening." He raised these concerns with VIHA on several occasions in 2019 and 2020.

VIHA did not respond to Dr. Tabarsi's requests for information regarding steps taken by VIHA to investigate and address his complaint of workplace harassment and bullying.

Medical leave, then silence, then non-renewal

Dr. Tabarsi sought medical treatment, and "his physician advised that because Dr. Tabarsi was a victim of verbal and emotional abuse, including threats of physical aggression, he was not fit to work at the Hospital laboratory until further notice or such time as the workplace situation had resolved." He formally advised VIHA of his medical leave on March 3, 2021.

VIHA initially accommodated the leave. On July 9, 2021, while Dr. Tabarsi was still on medical leave, VIHA required him to renew his contract under Article 2. He expressed interest in renewing but requested information about VIHA's handling of his harassment complaint first. VIHA never responded.

On November 2, 2021, VIHA advised him "that the Contract was at an 'end' because VIHA had not received any notice from Dr. Tabarsi respecting renewal of the Contract." He relocated to Vernon, leaving his family behind, to take a locum position with the Interior Health Authority.

When contract claims meet workers' compensation

Dr. Tabarsi filed a notice to arbitrate in May 2023, alleging VIHA breached its obligation to provide a safe work environment and failed to negotiate contract renewal in good faith. He sought damages for loss of revenue, travel, and temporary housing expenses, and also sought moral and punitive damages for mental distress. He had also received compensation from WorkSafeBC for workplace injuries. Article 9.2 of the contract stipulated that disputes may be referred to mediation and, if not settled within 30 days, referred to arbitration under the Arbitration Act.

Justice Basran found the Vice Chair's determination that the claims were based on personal injury was not patently unreasonable. "Any mental distress injuries he sustained during the course of the Contract or in respect of his failure to renew it, is a personal injury as contemplated by the WCA," the court wrote.

The court noted that under section 127 of the Workers Compensation Act, "the compensation provisions are in place of any rights of action based on either tort, contract, or 'by reason of law'." Justice Basran added that claims are not restricted to actions in tort. The WCAT decision was quashed on separate grounds because the Vice Chair's interpretation of "court action" to include private arbitration was patently unreasonable. The matter was remitted back to WCAT for reconsideration, with costs of the application awarded to the petitioner from VIHA.

See Dr. Aref Tabarsi Inc. v British Columbia (Workers’ Compensation Appeal Tribunal), 2026 BCSC 631

LATEST NEWS