Ontario Superior Court Awards $5.37 Million in Damages for Reprisal Under Anti-Reprisal Provisions of Ontario Securities Act

The Ontario Superior Court of Justice has awarded a former executive $5.37 million in damages under the Ontario Securities Act (the Act), confirming that an employer will be found to be in breach of the Act's anti-reprisal provisions if they take any adverse action against an employee that is, in any way, motivated by the employee having engaged in a "protected activity" under the Act. This decision provides the first judicial interpretation of the anti-reprisal provisions which were first introduced in 2016 under Part XXI.2 of the Act.

Key Takeaways:

• The Court confirmed that an employer will be found to be in breach of the Act's anti-reprisal provisions if they take any adverse action against an employee that is, in any way, motivated by the employee having engaged in a "protected activity" under the Act.
• The onus is on the employer to establish, on a balance of probabilities, that the employee's protected activity played no role in the decision to terminate their employment.
• The Court applied a mixed-motive test for a finding of reprisal, stating that the prohibition on reprisal is breached if an employee's protected activity formed any part of the employer's decision to terminate the employee's employment.
• The Court found that the Plaintiff's belief that the new reporting structure violated Ontario securities laws was objectively reasonable, given Global's history of non-compliance with securities laws.
• Global's stated reason for the Plaintiff's termination (poor performance) was merely pretext, relying on Global's failure to produce key corporate records and credibility issues with its witnesses.
• The Court awarded statutory damages totaling $5,379,808.22, plus prejudgment interest.
• The Court confirmed that the statutory compensation remedy under the Act was designed to punish and deter, rather than merely to compensate.
• The Court did not deduct any of the Plaintiff's post-termination earnings from the award, as the statute does not place any obligation on an employee to mitigate damages.

Statistics:

• $5,379,808.22: the amount of statutory damages awarded to the Plaintiff.
• $53.5 million: the amount of the counterclaim brought by Global, which was found to be a strategic lawsuit and was struck as such.

Sources:

• McPherson v. Global Growth Assets Inc., 2025 ONSC 5226
• Ontario Securities Act, RSO 1990, c S.5
• Ontario Employment Standards Act, 2000, S.O. 2000, c. 41
• Ontario Occupational Health and Safety Act, RSO 1990, c O.1