D007 | S023 | Blank in this copy; related defence CV-26-00094941-0000 Mechanical extraction of DOCX body paragraphs only. Headers, footers, text boxes, notes and pagination may be omitted. Paragraph numbers are generated reading aids, not source page or legal paragraph numbers. No PDF preview or filed status is implied. Compare with the unchanged supplied Word file. DOCX paragraph 1 — document paragraph Court File No.: _____________________ DOCX paragraph 2 — document paragraph ONTARIOSUPERIOR COURT OF JUSTICE DOCX paragraph 3 — document paragraph BETWEEN: DOCX paragraph 4 — document paragraph JAMES KURTZ DOCX paragraph 5 — document paragraph Plaintiff DOCX paragraph 6 — document paragraph -and- DOCX paragraph 7 — document paragraph XCMG CANADA DOCX paragraph 8 — document paragraph Defendant DOCX paragraph 9 — document paragraph STATEMENT OF CLAIM DOCX paragraph 10 — document paragraph TO THE DEFENDANT DOCX paragraph 11 — document paragraph A LEGAL PROCEEDING HAS BEEN COMMENCED AGAINST YOU by the plaintiff. The claim made against you is set out in the following pages. DOCX paragraph 12 — document paragraph IF YOU WISH TO DEFEND THIS PROCEEDING, you or an Ontario lawyer acting for you must prepare a statement of defence in Form 18A prescribed by the Rules of Civil Procedure, serve it on the plaintiff’s lawyer or, where the plaintiff does not have a lawyer, serve it on the plaintiff, and file it, with proof of service, in this Court Office, WITHIN TWENTY DAYS after this statement of claim is served on you, if you are served in Ontario. DOCX paragraph 13 — document paragraph If you are served in another Province or territory of Canada or in the United States of America, the period for serving and filing your statement of defence is forty days. If you are served outside of Canada and the United States of America, the period is sixty days. DOCX paragraph 14 — document paragraph Instead of serving and filing a statement of defence, you may serve and file a notice of intent to defend in Form 18B prescribed by the Rules of Civil Procedure. This will entitle you to ten more days within which to serve and file your statement of defence. DOCX paragraph 15 — document paragraph IF YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID OFFICE. DOCX paragraph 16 — document paragraph IF YOU PAY THE PLAINTIFF’S CLAIM, AND $5,000.00 FOR COSTS, WITHIN THE TIME FOR SERVING AND FILING YOUR STATEMENT OF DEFENCE, YOU MAY MOVE TO HAVE THIS PROCEEDING DISMISSED BY THE COURT. IF YOU BELIEVE THE AMOUNT CLAIMED FOR COSTS IS EXCESSIVE, YOU MAY PAY THE PLAINTIFF’S CLAIM AND $400.00 FOR COSTS AND HAVE THE COSTS ASSESSED BY THE COURT. DOCX paragraph 17 — document paragraph TAKE NOTICE: THIS ACTION WILL AUTOMATICALLY BE DISMISSED IF IT HAS NOT BEEN SET DOWN FOR TRIAL OR TERMINATED BY ANY MEANS WITHIN FIVE YEARS AFTER THE ACTION WAS COMMENCED UNLESS OTHERWISE ORDERED BY THE COURT. DOCX paragraph 18 — document paragraph DATE:____________________ISSUED BY:______________________ DOCX paragraph 19 — document paragraph Local Registrar DOCX paragraph 20 — document paragraph Address of Court Office: DOCX paragraph 21 — document paragraph 45 Main Street EastHamilton, ON L8N 2B& DOCX paragraph 22 — document paragraph TO: XCMG Canda Ltd. 100 Burland CrescentHamilton, ON L8H 5Y4 DOCX paragraph 23 — document paragraph CLAIM DOCX paragraph 24 — document paragraph The Plaintiff claims in damages against the Defendant: DOCX paragraph 25 — document paragraph Damages in the amount of $171,720 for lost compensation during the reasonable notice period; DOCX paragraph 26 — document paragraph Damages in the amount of $250,000 in respect of aggravated and punitive damages; DOCX paragraph 27 — document paragraph Damages in the amount of $250,000 arising from bad faith, in respect of the breach of the duty of honesty and good faith in contractual relations; DOCX paragraph 28 — document paragraph Damages for lost benefit coverage during the reasonable notice period, the particulars of which will be provided prior to trial; DOCX paragraph 29 — document paragraph Special damages, the amount of which will be provided prior to trial, resulting from the Plaintiff’s expenses incurred in seeking alternative employment; DOCX paragraph 30 — document paragraph Pre-judgment interest on the aforementioned amounts pursuant to the Courts of Justice Act, R.S.O. 1990, c. C. 43, s. 128; DOCX paragraph 31 — document paragraph Post-judgment interest on the aforementioned amounts pursuant to the Courts of Justice Act, R.S.O. 1990, c. C. 43, s. 129; DOCX paragraph 32 — document paragraph Costs of this action on a substantial indemnity basis, together with applicable Harmonized Sales Tax thereon in accordance with the Excise Tax Act, R.S.C. 1985, c. E-15, as amended; and DOCX paragraph 33 — document paragraph Such further and other relief as counsel may advise and this Honourable Court may permit. DOCX paragraph 34 — document paragraph THE PARTIES DOCX paragraph 35 — document paragraph The Plaintiff, James Kurtz (“Mr. Kurtz”), is 57-year-old Ontario resident. Mr. Kurtz was employed by the Defendant in the position of Dealer Support Manager until he was dismissed from his employment on October 27, 2024, following approximately one year of continuous employment. The Plaintiff was dismissed after raising concerns about serious and unlawful safety violations and fraudulent activities within the Company. DOCX paragraph 36 — document paragraph The Defendant, XCMG Canada Ltd. (“XCMG” or the “Company”), is a multinational manufacturer of heavy machinery with operations cross North America. The company maintains two offices in Canada, one in Alberta and the other in Hamilton, Ontario. DOCX paragraph 37 — document paragraph BACKGROUND DOCX paragraph 38 — document paragraph Mr. Kurtz’s Employment DOCX paragraph 39 — document paragraph Prior to his employment with XCMG, Mr. Kurtz was employed by Battlefield Equipment Rentals, where he had worked continuously since March 2017. In or about October 2023, XCMG actively recruited and solicited Mr. Kurtz, inducing him to leave his existing employment and join the Company. Mr. Kurtz ultimately accepted the Defendant’s offer of employment. He commenced employment with XCMG on October 18, 2023, in the position of Technical Service Manager of Material Handling Equipment. DOCX paragraph 40 — document paragraph On May 16, 2024, Mr. Kurtz was promoted to the position of “Director of Service for all Product Lines,” a position he held at the time of his termination. DOCX paragraph 41 — document paragraph Mr. Kurtz was at all material times a loyal and dedicated employee whose service was of great benefit to the Defendant. He performed his job in a professional and highly capable manner, taking safety concerns and the Company’s obligations very seriously. DOCX paragraph 42 — document paragraph Mr. Kurtz identified and reported safety violations within the company. This included fraudulent activities such as replacing serial plates on electric scissor lifts to alter the manufacturing year. This conduct was illegal and could result in serious injury or death. Falsely altering the manufacturing year could result in delayed inspections of equipment in accordance with the Canadian Standards Association’s standards. Mr. Kurtz raised this reported issue to multiple employees, including CEO Victor Jiang. DOCX paragraph 43 — document paragraph Following these reports, the Defendant began imposing disciplinary measures against him for alleged customer issues, which the Plaintiff denies. These disciplinary measures were imposed on false pretences as a reprisal of Mr. Kurtz reporting the fraudulent activity described above. DOCX paragraph 44 — document paragraph During a subsequent disciplinary meeting, a disagreement arose between Mr. Kurtz and members of senior leadership. Following that meeting, on Sunday, October 27, 2024, Plaintiff sent an email to Mr. Jiang that inadvertently copied a client. The Defendant immediately terminated Mr. Kurtz’s employment, on the same day, for falsely alleged cause without investigating or otherwise permitting Mr. Kurtz an opportunity to address the issue. DOCX paragraph 45 — document paragraph No just cause existed for the termination of Mr. Kurtz’s employment. Neither did Mr. Kurtz commit wilful misconduct. However, the Defendant did not provide Mr. Kurtz with notice of termination or pay in lieu thereof as required by either the common law or the Employment Standards Act, 2000. DOCX paragraph 46 — document paragraph At the time that Mr. Kurtz was dismissed, his relevant characteristics were as follows: DOCX paragraph 47 — document paragraph Mr. Kurtz was employed in the role of “Director of Service for all Product Lines”; DOCX paragraph 48 — document paragraph Mr. Kurtz was 55 years; DOCX paragraph 49 — document paragraph Mr. Kurtz had approximately one year of continuous service; DOCX paragraph 50 — document paragraph Mr. Kurtz earned an annual compensation of at $171,720, including, without limitation: DOCX paragraph 51 — document paragraph Base salary of $145,200.00; DOCX paragraph 52 — document paragraph Monthly car allowance of $1000; DOCX paragraph 53 — document paragraph Enrolment and participation in the Defendant’s comprehensive group benefits plan (valued at 10% of Mr. Kurtz’s annual salary, equalling to $14,520 annually). DOCX paragraph 54 — document paragraph Improper Assertion of Just Cause for Dismissal DOCX paragraph 55 — document paragraph The termination letter dated October 27, 2024, contained overly broad and unfounded allegations. The reasons for termination cited in the letter are a pretext. The true underlying reason for termination was related to Mr. Kurtz’s identification and reporting of the unlawful alteration of serial plates on electronic scissor lifts. DOCX paragraph 56 — document paragraph Damages DOCX paragraph 57 — document paragraph Wrongful Dismissal DOCX paragraph 58 — document paragraph The Defendant’s actions, as outlined above, constitute a strategic attempt to terminate Mr. Kurtz for alleged cause where no such cause existed. This conduct amounts to wrongful dismissal. DOCX paragraph 59 — document paragraph Mr. Kurtz’s employment contract did not contain any enforceable terms that rebut the common law presumption of reasonable notice of termination. DOCX paragraph 60 — document paragraph Therefore, the Defendant could only terminate Mr. Kurtz’s employment upon the provisions of reasonable notice or pay in lieu of notice. DOCX paragraph 61 — document paragraph Mr. Kurtz in entitled to payment of damages for the Defendant’s failure to provide reasonable notice of the termination of his employment. Based on, without limitation, his age of 57, his Director level role, and the difficulty he will face finding alternative employment with a comparable remuneration package having regard to the recessed state of the economy at the time of termination, Mr. Kurtz is entitled to twelve (12) months of pay in lieu of notice. DOCX paragraph 62 — document paragraph Mr. Kurtz is entitled to receive at least $171,720 in damages as compensation for every component of his package of remuneration, including base salary, benefits, and car allowance (as outlined above at paragraph 9(d)), throughout the entire twelve (12) month common law notice period. Such amounts will be further particularized prior to trial. DOCX paragraph 63 — document paragraph Mr. Kurtz has taken, and continues to take, diligent steps to mitigate his damages. Despite his best effort, Mr. Kurtz has been unable to obtain comparable employment to that which he had with the Defendant. DOCX paragraph 64 — document paragraph Mr. Kurtz pleads that he is entitled to special damages to reimburse him for the expenses he is incurring in seeking new employment, the full particulars of which he will provide prior to trial. DOCX paragraph 65 — document paragraph Bad Faith Damages DOCX paragraph 66 — document paragraph Mr. Kurtz is entitled to damages in the amount of $250,000 for bad faith arising from the Defendant’s breach of its duty of honesty and good faith in the performance of contractual relations. Mr. Kurtz pleads that this claim is grounded in the Defendant’s strategic and unfounded termination of his employment for alleged just cause, where no such cause existed. DOCX paragraph 67 — document paragraph Punitive and Aggravated Damages DOCX paragraph 68 — document paragraph Mr. Kurtz is entitled to $250,000 with respect to aggravated and punitive damages arising from the Defendant’s unfounded and unduly harsh termination of his employment, following his discovery and reporting of the unlawful alteration of serial plate numbers on electronic scissor lifts. DOCX paragraph 69 — document paragraph Mr. Kurtz further pleads that the Defendant’s conduct was harsh, vindictive, and reprehensible, such that he is entitled to an award of aggravated and punitive damages to demonstrate this Honourable Court’s condemnation. DOCX paragraph 70 — document paragraph As a result of the Defendant’s conduct, Mr. Kurtz has suffered from stress and anxiety, which has impacted his health both physically and psychologically. These issues ultimately led Mr. Kurtz to attempt suicide. Further, Mr. Kurtz and his family have faced serious financial repercussions and are in jeopardy of losing their home due to foreclosure. DOCX paragraph 71 — document paragraph The Plaintiff requests that the trial of this action be held in the City of Hamilton, in the Province of Ontario. DOCX paragraph 72 — document paragraph May 1, 2026HUDSON SINCLAIR LLP DOCX paragraph 73 — document paragraph 55 University Avenue, Suite No. 1100 DOCX paragraph 74 — document paragraph Toronto, ON M5J 2H7 DOCX paragraph 75 — document paragraph Alexander J. Sinclair LSO #: 62028U DOCX paragraph 76 — document paragraph Tel: 647.697.0588 DOCX paragraph 77 — document paragraph Email: alex@hudsonsinclair.com DOCX paragraph 78 — document paragraph Lawyers for the Plaintiff