Appeal court also rejected abandonment claim during medical absence
When John Denton walked out of a heated July 15, 2020, meeting at Korpan Tractor and Parts saying "I am also done," his employer took those words as a resignation. Four months later, Korpan Tractor sent a letter: "This letter is to acknowledge that Korpan Tractor has accepted your resignation which you John Denton verbally announced to Brian and Tyler Korpan with Jarrie Hegg as witness on July 15, 2020." The Court of Appeal for Saskatchewan, in a March 27, 2026, ruling by Justice Lian M. Schwann, upheld a wrongful dismissal award of $348,450.44.
Denton had worked at Korpan Tractor since 1996, rising from apprentice mechanic to service manager with annual compensation of $177,725. He was dealing with known mental health challenges, including grief over his father's death and distress from COVID-related layoffs.
The meeting had already deteriorated before Denton arrived. Paul Lee, head of fleet repairs, walked out first. Brian Korpan then directed his anger at Denton. Tyler Korpan followed Denton to his office, where Denton testified he rescinded his resignation. Tyler said he could not recall this.
Within a day or two, Brian and Tyler told assembled staff that "John had not resigned but he needed some time off for his health" and that "he was expected to return." Tyler signed off on Denton's seven-week short-term disability claim under the company's Empire Life group insurance plan.
When support becomes evidence
Korpan Tractor's post-meeting conduct became central to the case. Brian sent Denton a text: "I hope you stay with us. We really do appreciate all that you do," and another reading, "Take a break and get better we want you to be happy and healthy not stressed."
On September 30, Tyler wrote: "You[r] health & well being is of utmost importance and it needs to be treated that way. ... This may take some time to get sorted out." In pre-trial questioning, Tyler admitted he still considered Denton an employee until the November letter.
The Court found these communications showed Korpan Tractor had not accepted Denton's resignation. It also rejected the employer's claim that Denton abandoned his employment, finding he "did not consciously leave his employment relationship" and was focused on his health. The company's refusal to support his long-term disability application, combined with the November 2020 letter, established termination without cause.
Notice, mitigation and a growing trend
The trial judge awarded 24 months' pay in lieu of notice, deducting $7,000 in short-term disability benefits Denton received under the employer's plan but not a $25,000 settlement from Empire Life for long-term disability. Korpan Tractor argued for 12 to 18 months. The Court disagreed, noting "over the past two decades there has been a gradual increase in the amount of reasonable notice courts have been prepared to award."
On mitigation, the employer argued Denton made no effort to find work. The Court found him "unfit to work," noting the employer bore the onus of proving both failure to mitigate and that comparable work was available. Korpan Tractor led no such evidence.
The Court confirmed a valid resignation requires that "the employee genuinely intends to sever the employment relationship" and that "a reasonable person in the position of the employer would believe that this is the employee's intent." On the facts, it found "there is no characterization of the facts which leads to a conclusion that [Mr. Denton] resigned on July 15, 2020."
See Korpan Tractor and Parts (Parriwi Management Inc.) v Denton, 2026 SKCA 44
